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Economic Indicators Comparison: Nigeria vs. Bangladesh
| Indicator | Nigeria | Bangladesh |
|---|---|---|
| Interest Rates (Lending) | 26.25% | 8.5% (JUL 2024) |
| Exchange Rates (Local Currency per USD) | ₦ (Nigerian Naira) 1,490 | 119 (Aug 2024) |
| Inflation Rate | 33.95% | 11.66% (Jul 2024) |
| Unemployment Rate | 5% | 4.2% (Dec 2023) |
| GDP Growth Rate | 2.85% | 6-7% (projected) |
| Savings Rate | 6.28% | Around 10% (estimated) |
Discussion:
- Interest Rates: Nigeria has significantly higher interest rates to address inflation.
- Exchange Rates: The Nigerian Naira is weaker compared to the Bangladeshi Taka against the USD.
- Inflation Rate: Nigeria experiences considerably higher inflation compared to Bangladesh’s more moderate rate.
- Unemployment Rate: Unemployment is a serious challenge in Nigeria, while Bangladesh appears to have a lower rate, though estimates may vary.
- GDP Growth Rate: Bangladesh’s economy is projected to grow faster than Nigeria’s.
- Savings Rate: Both countries have populations with a reported propensity to save.
Related Currency Pairings
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African Currencies
The Evolution of the Bangladeshi Taka
The Bangladeshi Taka (BDT) has been the national currency of Bangladesh since 1971. Its history reflects the country’s complex political and economic landscape, shaped by independence, economic reforms, and global economic events.
Early Years: Prior to the introduction of the Taka, Bangladesh used the Pakistani rupee. The Taka was introduced at a fixed exchange rate to the rupee, reflecting the country’s recent history as part of Pakistan.
Economic Challenges and Hyperinflation: Following independence, Bangladesh faced significant economic challenges, including poverty, political instability, and natural disasters. These factors contributed to hyperinflation and economic instability.
Currency Reforms and Devaluation: In 1991, Bangladesh introduced a new Taka, replacing the old currency at a rate of 100 old Taka to 1 new Taka. This reform aimed to combat hyperinflation and stabilize the economy. However, the new Taka also experienced periods of devaluation, particularly during times of political unrest and economic crisis.
Economic Growth and Development: In recent decades, Bangladesh has achieved significant economic growth, driven by its ready-made garment industry, agriculture, and remittances from overseas workers. This growth has helped to improve living standards and reduce poverty.
Currency Stability and Pegging: The Bangladeshi Taka has been relatively stable in recent years, reflecting the country’s economic progress. However, it remains vulnerable to global economic events and fluctuations in commodity prices.
Specific Reforms and Policies:
- 1971: Introduction of the Bangladeshi Taka, replacing the Pakistani rupee.
- 1991: Introduction of a new Taka to combat hyperinflation.
- 1990s: Implementation of economic reforms, including privatization, liberalization, and fiscal consolidation.
- 2000s: Introduction of monetary policy measures to address inflation and economic growth.
- 2010s: Response to global economic events, such as the financial crisis and the COVID-19 pandemic.
Sources:
World Bank
Central Bank of Nigeria
Trading Economics
Central Bank of