The Bangladeshi Taka (BDT), subdivided into 100 poisha, has been the sole legal tender since 1972 when it replaced the Pakistani rupee at par following independence. Bangladesh Bank, the central bank established in 1971, issues notes in denominations of 2, 5, 10, 20, 50, 100, 500, and 1000 taka. The 2 and 5 taka notes are being phased out in favor of coins. As of recent years, the exchange rate has fluctuated between approximately 85 and 110 taka per US dollar, though rates vary daily and differ between official interbank rates and money changer rates. The currency is not freely convertible on international markets, and exchange controls exist for certain transactions, administered through Bangladesh Bank directives that change periodically.
Bangladesh operates a dual banking system consisting of conventional commercial banks and Islamic Shariah-based banks. The Bangladesh Financial Intelligence Unit under Bangladesh Bank oversees approximately 60 scheduled banks including state-owned commercial banks like Sonali Bank, Janata Bank, Agrani Bank, and Rupali Bank, alongside private commercial banks such as BRAC Bank, Dutch-Bangla Bank, Eastern Bank, and City Bank. Foreign banks including Standard Chartered, HSBC, Citibank NA, and State Bank of India maintain limited branch networks concentrated in Dhaka and Chittagong. Islamic banks like Islami Bank Bangladesh, Al-Arafah Islami Bank, and Social Islami Bank operate under principles that prohibit interest-based transactions. The banking sector has faced periodic challenges with non-performing loans, which according to Bangladesh Bank reports have ranged between 8 and 12 percent of total loans in recent years depending on classification methods.
ATMs are widespread in Dhaka, Chittagong, Sylhet, and other divisional capitals, with the Dutch-Bangla Bank ATM network being the largest, comprising over 5000 machines nationwide as of recent counts. International cards bearing Visa, Mastercard, or UnionPay logos generally function at ATMs displaying corresponding symbols, though withdrawal limits typically range from 20,000 to 40,000 taka per transaction with daily limits around 50,000 to 100,000 taka depending on the issuing bank and card type. ATM withdrawal fees for foreign cards vary but typically include a flat fee of 200 to 500 taka per transaction plus whatever international transaction fees the card-issuing bank charges. ATM availability decreases sharply outside major urban centers, and machines frequently run out of cash during weekends or public holidays, particularly in smaller cities. Power outages occasionally disable ATMs even in major cities, and internet connectivity issues can prevent authorization of foreign card transactions.
Credit cards are accepted at international hotel chains, upscale restaurants, and some shopping centers in Dhaka and Chittagong, but cash remains the dominant payment method throughout Bangladesh. Small businesses, local restaurants, transportation services, and markets do not accept cards. The Bangladesh Bank reported in recent years that credit card penetration remains below 2 percent of the adult population, with debit cards being more common but still representing a minority of transactions by volume. American Express acceptance is limited compared to Visa and Mastercard. Contactless payment infrastructure exists at some newer establishments in Dhaka but represents a small fraction of payment terminals nationwide.
Mobile financial services have achieved far greater penetration than traditional banking in Bangladesh. bKash, launched in 2011 by BRAC Bank in partnership with Money in Motion, reported over 60 million registered users by the early 2020s, making it the dominant mobile money platform. Nagad, operated by Bangladesh Post Office with technical support from the central bank, has grown rapidly since its 2019 launch and reported over 60 million users within three years. Rocket, operated by Dutch-Bangla Bank, and other services like Upay and SureCash serve additional market segments. These services enable cash-in and cash-out at agent locations, person-to-person transfers, bill payments, and merchant payments through basic mobile phones without requiring smartphones or internet connectivity. Agent outlets number in the hundreds of thousands across rural and urban areas, often operating from small shops displaying branded signage. Transaction fees vary but typically range from 1 to 2 percent for cash-out transactions, with smaller or no fees for many other transaction types.
Money changers operate legally in Bangladesh with licenses from Bangladesh Bank, and formal exchange booths concentrate around hotel districts in Dhaka's Gulshan, Banani, and Motijheel areas, as well as near the international airport and in Chittagong's commercial districts. Rates at licensed changers typically differ by 1 to 3 percent from official rates, with rates for cash exchanges generally less favorable than bank rates but offering faster service without account requirements. Black market currency exchange exists but involves legal risks and rates that may not offer advantages given the relatively stable and moderately liquid formal exchange market. Hotels typically offer currency exchange at rates 3 to 5 percent less favorable than banks or licensed changers. Bringing US dollars, euros, or British pounds for exchange is straightforward, while other currencies may be difficult to exchange outside major bank branches in Dhaka. Traveler's checks have become nearly obsolete and are difficult to exchange even at banks.
Bangladesh has four primary mobile network operators: Grameenphone, Robi Axiata, Banglalink, and state-owned Teletalk. Grameenphone, a joint venture between Telenor and Grameen Telecom, maintains the largest subscriber base with approximately 80 million users as of recent years, representing roughly 45 percent market share. Robi, formed from the merger of Robi and Airtel Bangladesh in 2016, serves approximately 50 million subscribers. Banglalink, owned by VEON, operates the third-largest network with approximately 35 million subscribers. Teletalk, wholly owned by the Bangladesh government, maintains a smaller subscriber base but provides nationwide coverage including to government employees and some areas where private operators have limited presence. The Bangladesh Telecommunication Regulatory Commission (BTRC) oversees spectrum allocation, licensing, and regulatory enforcement.
Mobile network coverage reaches approximately 99 percent of the population according to BTRC reports, though geographic coverage is lower due to concentrated population density. 4G LTE networks cover Dhaka, Chittagong, Sylhet, and other major cities, with expansion continuing to secondary cities and some rural areas. 3G coverage extends more broadly but speeds and reliability vary significantly by location and network congestion. Rural areas and the Chittagong Hill Tracts experience less consistent coverage, and islands in the Bay of Bengal have limited or no coverage. Network speeds in Dhaka typically range from 5 to 20 Mbps on 4G during off-peak hours, dropping to 1 to 5 Mbps during peak evening hours due to congestion. Grameenphone generally maintains the most extensive coverage, while Robi and Banglalink concentrate resources in urban and semi-urban areas. Teletalk coverage is extensive on paper but actual signal quality and data speeds often lag behind private operators.
Prepaid SIM cards are the dominant mobile service model in Bangladesh, with postpaid plans representing less than 5 percent of connections. Tourist SIM cards are not formally available as a separate category, but purchasing a prepaid SIM requires registration under Bangladesh's biometric SIM registration policy implemented in phases since 2015. Officially, SIM registration requires a Bangladeshi national ID card, though some shops near hotels in Dhaka and Chittagong have facilitated registration for foreigners using passport copies and local contact information, sometimes for additional unofficial fees. The legal requirement states that foreigners should present passport, visa, and a local reference, with registration processed through the operator's formal channels. Enforcement varies, and acquiring a SIM card as a short-term visitor involves navigating these inconsistent practices. SIM prices range from 50 to 200 taka for the card itself, with separate prepaid credit purchased for calls and data.