increasing exchange rate in Bangladesh: Causes and impact in BD economy.
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Transcript of increasing exchange rate in Bangladesh: Causes and impact in BD economy.
WELCOME
GROUP NAME: ‘SYNERGY’
NAME ID
MD. SALIM AHMED 07302120
MD.ARIFUL HAQUE CHOWDHURY 07302037
MD. TANBIR AHMED 07302030
Increasing of Exchange rate in Bangladesh: Causes and Impact in BD Economy.
An exchange rate is the current market price for which one currency can be exchanged for another
Fixed Exchange rate
Floating Exchange rate
Pegged Exchange rate
Exchange rate system
Exchange rate
Export&
Import
Foreign Exchange reserve
Balance of Payment
Factors Determining the Exchange rate
Current trends of exchange rate against US Dollar
Current scenario of Exchange rate in Bangladesh against world major currenciesConvert from Convert to Exchange rate As OfBangladeshi Taka (BDT)
US Dollar 0.01217 5/25/2012 3:00 AM
Bangladeshi Taka (BDT)
Canadian dollar (CAD)
0.01250 5/25/2012 3:00 AM
Bangladeshi Taka (BDT)
Australian Dollar (AUD)
0.01246 5/25/2012 3:00 AM
Bangladeshi Taka (BDT)
Indian Rupee (INR) 0.67648 5/25/2012 3:00 AM
Bangladeshi Taka (BDT)
Euro (EUR) 0.00971 5/25/2012 3:00 AM
Bangladeshi Taka (BDT
British Pound (GBP) 0.00777 5/25/2012 3:00 AM
Bangladeshi Taka (BDT)
Saudi Riyal (SAR) 0.04564 5/25/2012 3:00 AM
Bangladeshi Taka (BDT)
Japanese Yen (JPY) 0.96912 5/25/2012 3:00 AM
Reducing Foreign Reserve
Trade Deficit
Reducing FDI
Causes of increasing Exchange rate in Bangladesh
High Subsidy in Quick rental power plant for importing
furnace Oil
Foreign aid (receipt and Payment)
Money laundering
Foreign reserve (2010-12)
December january February March April0
2000
4000
6000
8000
10000
12000 11174.410381.7
11158.610730.6
11316.4
9634.9 9386.510066.8
9579.410193
2010-11( In million US $) 2011-12 (In million US $)
FDI inflow (1996-2011)
2010-11 2011-12
61.42
41.38
-36.86 -40.93
Foreign aid: Receipt and payment(in crore $,july –Novembor)
receipt payment with interest
Inflation
Increasing the cost of production
Decreasing the competitiveness
Decreasing standard of living
Impact of increasing exchange rate
Discourage import of luxurious goods like-expensive smart phone, IT product, Automobiles, furniture etc.
Bangladesh bank must keep foreign reserve above 10 billion.Investment board must takes sufficient initiatives to attracts more
& more FDI.Strict rules must be enforce by Bangladesh bank to stop money
laundering.A Special fund should be formulate to meet call up money or
provide liquid money by Bangladesh bank or IMF.Free flow of remittance must be ensured. Minimize trade deficitDevaluation of taka must be balanced.Need sound govt. policy and implementation of policy.
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