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The taka weakened by 1.9 per cent against the US dollar in November on a year-on-year basis, reflecting stronger import demand and a gradual adjustment of the exchange rate, according to central bank data.

The Bangladesh Bank said the local currency continued to edge down in the following months, losing another 0.44 per cent between September 2025 and January 15, 2026. As of January 15, the nominal exchange rate stood at Tk 122.31 per dollar.

Officials familiar with developments said the pace of depreciation remained relatively modest compared with regional peers. India’s rupee, for instance, weakened by about 5.0 per cent over a similar period.

They, however, noted that there remains room for further depreciation as foreign exchange liquidity improves and market pressures persist amid rising imports.

The dollar also gained strength globally during the period. The dollar index rose to 99.46 in November from 96.88 in June 2025, strengthening the US currency against most major and emerging market currencies, central bank data showed.

Despite the year-on-year weakening in nominal terms, Bangladesh’s real effective exchange rate appreciated sharply, largely because domestic inflation outpaced that of key trading partners.

Based on a 15-currency trade basket, the REER index climbed to 106.37 in November 2025 from 104.10 a year earlier. A REER level above 100 indicates that the currency is overvalued in real terms.

As a result, the REER-implied equilibrium exchange rate now lies above the nominal rate, suggesting further nominal depreciation of the taka may be needed to restore external competitiveness, particularly for export-oriented sectors.