State of the Bangladesh Economy in FY2021-22
Independent Review of
RBD
Bangladesh's Development
Analysis of External Sector Performance
The REER has been on a secular rise between 2016 and 2021. However,
the nominal effective exchange rate (NEER) has exhibited the opposite
trend with subtle increases in the most recent months
➤ The REER of BDT appears
to be overvalued and would
have experienced some
depreciation had
Figure: REER, NEER and USD-BDT exchange rate
trends
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171.8
169.7
170
Bangladesh pursued a pure
153.7
147.0
150
floating exchange rate
regime
➤ In recent times Bangladesh
Bank (BB) has been actively
intervening in the forex
market, by selling USD, to
limit any significant slide of
the BDT
130
90
70
110103.9
107.1
94.2
Jul-16
Nov-16
Mar-17
CPD (2021): State of the Bangladesh Economy in FY2021-22 (First Reading)
●
REER
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Mar-18
Jul-18
Nov-18
NEER
Mar-19
Jul-19
Nov-19
Mar-20
Jul-20
Nov-20
Mar-21
Jul-21
Nov-21
BDT-USD nominal exchange rate
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97.3View entire presentation