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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