Bangladeshi Currency Plummets: Bangladesh is in a ‘transition phase,’ with its economy taking a sharp downturn. Amid political and diplomatic crises, the nation faces another blow—a steep plunge in the value of the Bangladeshi Taka. The Bangladeshi Taka has sharply depreciated against the Indian Rupee, with its value continuing to fluctuate, delivering significant shocks daily.

Media reports highlight the ongoing volatility in the exchange rate between the Bangladeshi Taka and the Indian Rupee. The exchange rates observed over consecutive days last week reflect a clear depreciation trend, driven by the turmoil in Bangladesh. The decline in the Bangladeshi Taka, coupled with speculations among currency exchangers about further depreciation, is affecting the budgets of Bangladeshi visitors, particularly those in the city for medical reasons.

Reports indicate that people are receiving INR 1,000 to 2,000 less than the previous day. Currency exchangers paying a few rupees less is causing significant hardship, especially when it comes to large payments in the thousands. Bangladesh’s economy has been suffering due to the ongoing unrest and is anticipating further dip in Taka.  

Current Exchange rate of INR and Bangladeshi Taka

Currently the official exchange rate of 100 Indian Rupees is equivalent to 139 Taka and 33 Paisa in Bangladesh. The central bank placed the taka in a crawling peg to the US dollar, with a rate of 119.27 Bangladeshi Takas per US dollar.

Bangladesh now prefers Pakistan over India

Rising prices in the Indian market have reportedly driven Bangladesh to seek alternative suppliers. According to an India Today report, after importing sugar from Pakistan, Bangladesh is now exploring options to source potatoes and onions from the country as well.

This shift reflects Bangladesh’s efforts to secure uninterrupted supplies and reduce its dependency on India, its primary trading partner. The move comes amid strained relations between the two neighbours, fuelled by tensions over reported atrocities against Hindus in Bangladesh. Rising prices in the Indian market have reportedly prompted the search for new suppliers.

India-Bangladesh Relation

Bangladesh and India share a complex relationship marked by both historical cooperation and recurring tensions. This delicate balance has been further strained since the political shift in Bangladesh on August 5, 2024, when Sheikh Hasina stepped down from power. Her departure, followed by the rise of an interim government under Professor Muhammad Yunus, has disrupted the long-standing alignment between India and the ruling Awami League, creating uncertainty in the bilateral relationship.

Recent events, such as the arrest of Chinmoy Roy, a former ISKCON leader in Bangladesh, have intensified the already volatile situation. Allegations of sedition and attacks on diplomatic properties have heightened tensions, highlighting the fragile nature of the ties between these neighbouring countries.

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