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Exchange Rate Policy of Bangladesh: Not Floating Does Not Mean Sinking

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  • Dr Mirza Azizul Islam

Abstract

The paper analyses the current exchange rate policy of Bangladesh under various criteria and then assesses the feasibility of a floating rate regime under these various criteria. It looks at factors such as the involvement with international capital markets, share of trade with the country/countries with which the currency is pegged, and nature of shocks facing the economy, the willingness and feasibility of giving up control of its monetary policy and the level of international foreign currency reserves.

Suggested Citation

  • Dr Mirza Azizul Islam, 2003. "Exchange Rate Policy of Bangladesh: Not Floating Does Not Mean Sinking," CPD Working Paper 20, Centre for Policy Dialogue (CPD).
    • Handle: RePEc:pdb:opaper:20
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    File URL: https://cpd.org.bd/pub_attach/op20.pdf
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    References listed on IDEAS

    as
    1. Hernandez, Leonardo & Montiel, Peter J., 2003. "Post-crisis exchange rate policy in five Asian countries: Filling in the "hollow middle"?," Journal of the Japanese and International Economies, Elsevier, vol. 17(3), pages 336-369, September.
    2. World Bank, 2001. "World Development Report 2000/2001," World Bank Publications - Books, The World Bank Group, number 11856, December.
    3. Mr. Akhtar Akhtar Hossain, 2002. "Exchange Rate Responses to Inflation in Bangladesh," IMF Working Papers 2002/166, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Hossain, Monzur & Ahmed, Mansur, 2009. "An Assessment of Exchange Rate Policy under Floating Regime in Bangladesh," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 32(4), pages 35-68, December.
    2. Quader, Syed Manzur, 2004. "Floating Exchange Rate Regime," MPRA Paper 26163, University Library of Munich, Germany.
    3. Suparna Basu & Debabrata Datta, 2007. "India–Bangladesh Trade Deficit and Misaligned Bilateral Exchange Rate: Can Bangladesh Draw Lessons from Indonesia?," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 12(1), pages 76-102.
    4. M. Nusrate Aziz & Nick Horsewood & Somnath Sen, 2014. "The First and Second Stage Pass-through of Exchange Rates: A Developing Country Perspective," Review of Development Economics, Wiley Blackwell, vol. 18(3), pages 595-609, August.

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    More about this item

    Keywords

    Exchange rate policy; Bangladesh;

    JEL classification:

    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money

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