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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: http://www.cpd.org.bd/pub_attach/op20.pdf
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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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