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Exchange Rate Policy Bangladesh
BIDS-PRP WORKING PAPER SERIES

Exchange Rate Policy under Floating Regime in Bangladesh
An Assessment and Strategic Policy Options

Working Paper No. 2

Monzur Hossain * Mansur Ahmed∗∗

October, 2009

* Research Fellow, Bangladesh Institute of Development Studies (BIDS)
∗∗

Research Associate, Bangladesh Institute of Development Studies (BIDS)

BIDS-PRP WORKING PAPER SERIES Working Paper No. 2

EXCHANGE RATE POLICY UNDER FLOATING REGIME IN BANGLADESH: AN ASSESSMENT AND STRATEGIC POLICY OPTIONS © BIDS-PRP, 2009

Published by

BIDS-PRP The Bangladesh Institute of Development Studies E-17, Agargaon, Sher-e-Bangla Nagar G.P.O. Box No. 3854, Dhaka-1207, Bangladesh Phone: 9112829, 9143441-8, FAX: 880-2-8113023 Website: www.prpbd-bd.org E-mail: prp.bids@gmail.com Series Editor Dr. K. A. S. Murshid

With support from

Manusher Jonno Foundation

Price:

Tk. 125.00

ii

Table of Contents

List of Abbreviations and Acronyms......................................................................................... Acknowledgment........................................................................................................................ Executive Summary................................................................................................................... I. Introduction.........................................................................................................................

iv v vi 1 3 5 8 10 13 15 18 23 26 28 29 32

II. Literature Review: Exchange Rate Policies of Bangladesh................................................ III. Exchange Rate Management in Bangladesh (2000-2008)................................................ IV. De facto Regime Classification for Bangladesh .…….………………............................ V. Exchange Market Pressure................................................................................................

VI. Exchange Rate


References: Table A2: Trade Weights used in the REER calculation Country China Singapore India USA UK EU Hong Kong Japan Data Source: Bangladesh Bank; Younus (2009)
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