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EXCHANGE RATE IN BANGLADESH
Member rating: No Rating | Words: | Submitted: Tue Jun 20 2006
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EXCHANGE RATE IN BANGLADESH By Saikat Mahmood PROLOGUE In order to provide an overview of the Exchange rate management system in Bangladesh, this paper has been formulated with special reference to the behavior of the real exchange rate of Bangladesh. Before going into the details regarding the exchange rate system in Bangladesh, this paper will provide a brief discussion on the types of exchange rates and other underlying issues regarding exchange rates that will be essential for the ensuing discussion. The intervention currency for Bangladesh is the US dollar (US$). As will be mentioned in detail later, the nation allows a managed but passably flexible exchange rate. The currency is pegged with a host of 15 countries' exchange rates, the details of which will follow in the upcoming sections. The main objective behind this paper is to illustrate the impact of exchange rate policies (namely Real exchange rate appreciation and depreciation) on Money Supply (M2),...
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