The Taka weakened by nearly 2.0 per cent year on year in November 2025, reflecting higher import demand and a gradual adjustment of the exchange rate, according to the Bangladesh Bank data.
The central bank said the local currency depreciated 1.9 per cent against the US dollar in November compared with the same month a year earlier.
However, between September 2025 and January 15, 2026, the Taka lost a further 0.44 per cent.
As of January 15, 2026, the nominal exchange rate stood at Tk 122.31 per dollar.
People familiar with developments at the central bank said the pace of depreciation remained modest compared with regional peers.
India's rupee, for example, weakened by about 5.0 per cent over a similar period, they mentioned.
However, they added that there was scope for further depreciation as foreign exchange liquidity improved and market pressures persisted amid rising imports.
In the meantime, the dollar index rose to 99.46 in November from 96.88 in June 2025, strengthening the US currency against the most major and emerging market currencies, according to the Bangladesh Bank data.
Despite the year-on-year weakening of the Taka, the country's real effective exchange rate (REER) appreciated sharply, largely because domestic inflation outpaced that of its major trading partners.
The central bank prepares the REER considering a 15-currency trade basket of trade partners.
The REER index climbed to 106.37 in November 2025 from 104.10 a year earlier, the Bangladesh Bank data showed.
A REER value above 100 suggests the currency is overvalued in real terms.
As a result, the REER-implied equilibrium exchange rate now lies above the nominal rate, indicating room for further nominal depreciation of the Taka to restore external competitiveness, especially for the export-earning sector.
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