State of the Bangladesh Economy in FY2023-24 (First Reading)
Independent Review of
RBD
Bangladesh's Development
Move toward market aligned exchange rate
➤ Our more recent analysis, following our previous estimation method, indicates
that there is further scope for depreciation of the BDT, to the tune of about 7.0%,
for the exchange rate to reach an optimum level.
One understands why the Bangladesh Bank is pursuing a cautious policy in view of
the depreciation of BDT (imported inflation). However, depreciation should
incentivise remitters and raise the competitiveness of exporters. The trade-offs
will need to be carefully weighed. BDT exchange rate will need to approximate a
market-determined rate, possibly within a corridor supported by Bangladesh Bank
intervention.
CPD (2023): State of the Bangladesh Economy in FY2023-24 (First Reading)
78View entire presentation