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Foreign Exchange Bangladesh

Foreign Exchange Bangladesh

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Title: Foreign Exchange Bangladesh

Essay Details:

Subject: Business

Author:

Date: January 9, 2015

Level: University

Grade: A

Length: 4 / 1184

Essay text:

BANGLADESH BANK, as agent of the government, was the sole purveyor of foreign currency among users. It tried to equilibrate the demand for and supply of foreign exchange at an officially determined exchange rate, which, however, ceased to exist with introduction of current account convertibility. Immediately after liberation, the Bangladesh currency taka was pegged with pound sterling but was brought at par with the Indian rupee. Within a short time, the value of taka experienced a rapid decline against foreign currencies and in May 1975, it was substantially devalued. In 1976, Bangladesh adopted a regime of managed float, which continued up to August 1979, when a currency-weighted basket method of exchange rate was introduced...

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