NSU Research Contributions
Title : Changes in Exchange Rate Regimes and Some Macro Factors: Their Impacts on the Valuation of Bangladeshi Taka
Authors : Gour Gobinda Goswami, Md. Touhidur Rahman, Munim Kumar Barai
| Journal Title: FIIB Business Review | Volume Number: 14 | Publication Year : 2022 | Issue Number: 2 |
| Index: scopus | Ranking: Q2 | ISSN: 23197145, 24552 | Publisher Name: sage |
| Pages : 1-16 | |||
| Funding Source : None |
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Direct Sustainable Development Goals : SDG8 Decent Work & Economic Growth |
Indirect Sustainable Development Goals : SDG9 Industry, Innovation & Infrastructure |
Sustainable Development Sub Goals : Increase trade support for least developed countries |
| Impact statement: Bangladesh, an emerging economy in South Asia, has undergone several exchange rate regimes over its 50 years of independence. A comprehensive study of the exchange rate of the Bangladeshi taka (BDT) is lacking in the existing literature. Using annual data from 1972–1973 to 2017–2018, the study has measured changes in the BDT exchange rate during three regimes: a fixed exchange rate, a semi-fixed system, and a purely floating or managed floating system that Bangladesh has followed in succession. It has also described the factors that need to be affected by any change in the exchange rate. By using a desk research method, this article has investigated the roles of several macroeconomic variables such as the currency denomination of foreign exchange rate reserve components, money supply components, return on financial instruments or interest rates, gross domestic product, trade policy, asset holding strategy and interbank intervention strategy in BDT’s exchange rate fluctuations during those regimes. Among others, we found that Bangladesh’s volume of US dollars (USD) in its foreign reserves significantly outpaced the sum of all other currencies and assets combined. However, an extreme | Collaboration: Partner University | Keywords: Bangladesh,, Devaluation, EXCHANGE RATE, Macro Factors, Valuation of Bangladeshi Taka |
