Understanding Currency Exchange Rates
Exchange rates represent the value of one currency relative to another. When you see "1 USD = 110 BDT," it means one US Dollar buys 110 Bangladeshi Taka at the current market rate. These rates fluctuate constantly based on economic factors including inflation, interest rates, trade balances, and geopolitical events.
The rate shown on this tool is the mid-market rate — the midpoint between buy and sell rates on global currency markets. Banks and money transfer services typically add a margin of 1–5% above this rate. That difference is their profit, and it's often hidden from customers.
Tips for Getting the Best Rate
- Always compare the mid-market rate (shown here) with your bank's offered rate to understand the real cost.
- Specialist services like Wise typically offer rates much closer to the mid-market rate than traditional banks.
- Avoid airport exchange counters — they charge the highest fees of any service.
- Sending large amounts? Even a 0.5% difference in rate can save you hundreds of dollars.
- Monitor rates over a few days before sending — markets can move significantly.