Investor Presentaiton
Independent Review of
RBD
Bangladesh's Development
Prudent Exchange Rate Management:
Call of the Day
Bangladesh's managed float pursuit till now could not be made to work
for several reasons:
While the BB had depreciated the taka eight times this year, it proved to be
too little too late. The declining reserves situation did not allow the BB to go
for unlimited dollar injection (it had already done so to the extent of USD 6.2
billion in FY 2021-22).
□ CPD had also argued in successive IRBD's that Bangladesh's exports
were becoming less competitive vis-à-vis competitors and remittance
flows were also being disincentivised because of this.
□ CPD has been pointing out the need for depreciation of BDT in view of
the growing gap between REER and NEER.
CPD (2022): State of the Bangladesh Economy in FY2021-22 (Third Reading)
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