Ask a bank in Bangladesh what the dollar rate is and you may hear three different numbers on the same day, at the same branch, for the same dollar. This is the single most confusing thing for expatriate Bangladeshis — and some people exploit that confusion.
This guide clears up three things: who actually sets the dollar rate in Bangladesh today, which of the three bank rates applies to you, and why the open-market rate looks higher but does not help a remitter.
The five stages money sent from abroad passes through before it reaches the family
1. The crawling peg is no longer in use — the biggest change
You will still find articles online saying Bangladesh Bank sets the dollar price through a "crawling peg". That information is out of date.
The short history:
- 8 May 2024 — Bangladesh Bank introduced the crawling peg with a mid-rate of BDT 117, allowing banks to trade within a ±1% band around it.
- The mid-rate was later raised to BDT 119.
- May 2025 — to meet an IMF condition, Bangladesh moved off the crawling peg to a market-based exchange rate. In June 2025 the IMF released USD 1.3 billion of the USD 4.7 billion package.
So as of 2026, Bangladesh Bank no longer fixes a number. The rate is set by supply and demand in the interbank market, and the central bank steps in only to smooth excessive volatility.
The result has been unusually stable. Between March 2025 and March 2026 the taka depreciated by just 0.59% — among the most stable currencies in South Asia. In August 2026 the interbank rate moved between BDT 122.70 and 123.81.
2. So who sets the rate now?
One misconception is worth clearing up: your bank does not invent its rate, and Bangladesh Bank does not dictate it either. In practice it is decided at three levels.
| Level | Who | What they do |
|---|---|---|
| 1 | Interbank market | Banks trade dollars among themselves — the base rate forms here |
| 2 | Commercial banks | Add their own margin to the interbank rate and publish a customer rate |
| 3 | Bangladesh Bank | Buys or sells dollars to restore balance when the market gets volatile |
That is why banks differ slightly on the same day. The gap is usually between BDT 0.50 and 2.00 — but on USD 5,000 that can be up to BDT 10,000. It pays to compare today's rates across banks before a large transfer.
3. TT Clean, BC Selling, OD Sight — which one is yours?
These abbreviations on a bank's rate sheet look intimidating. The logic is simple: the name changes depending on who is selling dollars to whom.
| Rate | Full name | When it applies | Level |
|---|---|---|---|
| TT Clean | Telegraphic Transfer Clean | Remittance arriving from abroad — "clean" because no documents are involved | Bank is buying, so relatively lower |
| OD Sight / BC Buying | On Demand Sight Draft / Bill for Collection Buying | Bank purchases an export or documentary bill | Slightly below TT Clean |
| BC Selling | Bill for Collection Selling | Bank sells dollars to you — imports, travel, medical treatment | Highest |
The one-line answer for remitters: when you send money, the bank applies TT Clean. The other numbers on the sheet are not for you. If someone shows you the BC Selling rate and says "look how high it is", that is not what you will receive.
One thing should be said plainly: TT Clean will always be lower than BC Selling, and that is not a trick. A bank pays less when buying and charges more when selling — the spread is its income. Every bank in the world works this way.
4. Bank rate vs the open market (curb market)
Money changers and the open market often quote BDT 2–5 above the bank rate. Many people conclude they should send money that way. Two different things are being compared here.
| Aspect | Bank rate | Open market |
|---|---|---|
| What is traded | Digital dollars arriving in a bank account | Physical dollar notes held in hand |
| Where the price comes from | The interbank market | Cash demand for travel, medical treatment, Hajj |
| 2.5% incentive | ✔ Available | ✖ Not available |
| Record and protection | Bank is accountable, traceable | No formal protection |
| Applies to remittance? | Yes | No — it is a domestic cash market |
The key point: the open-market rate and the remittance rate are not the same thing. The open market is the domestic market for physical dollar notes; it has no direct bearing on money sent from abroad. Once you add the 2.5% incentive to the bank rate, the legal channel pays more in most cases.
5. What to do as a remitter — five steps
- Compare only the TT Clean rate. That is the number to check on a bank's site or on our today's rate page.
- Add the incentive before comparing. At BDT 123, the 2.5% incentive makes the effective rate BDT 126.07.
- Ask the exchange house about fees separately. A good headline rate can hide a high fee.
- Keep your paperwork ready for large transfers. Above BDT 500,000 the bank may ask about the source of income.
- Do not rush the rate. Most banks update it once a day.
Frequently asked questions
Will the crawling peg come back?
Under the IMF programme Bangladesh has committed to a market-based regime. Any policy change would be announced through a Bangladesh Bank circular — check their website rather than relying on rumours.
Is the TT Clean rate the same at every bank?
No. Each bank adds its own margin, so small differences exist. Compare a few banks before sending a large amount.
How often does the rate change during the day?
Most banks publish once in the morning and keep it for the day. In volatile markets an intraday revision is possible.
When does the incentive arrive?
Most banks credit the 2.5% along with the principal. Occasionally it appears a few days later as a separate entry.
Sources
- Bangladesh Bank — exchange rate data and Foreign Exchange Guidelines
- News reporting on the introduction and withdrawal of the crawling peg (May 2024 – May 2025)
- Daily exchange rate sheets published by commercial banks
This article is general information. Rates change daily — confirm the day's rate with your bank before transacting.