Dhaka, Jan. 3 -- Bangladesh's currency gets overvalued driven by higher domestic inflation compared to its trading economies with the prospect of export and remittance losing out, economists and businesspeople say.
Export and remittance are then two wellheads of foreign-exchange supplies for the country-and this duo helped out with an upturn in earnings recently while the country grappling with depleting reserves.
The real effective exchange rate (REER) index-a key measure of currency valuation-rose to 102.97 in October and to 104 in November, up from its fair value of 100.09 in September 2024, according to Bangladesh Bank data.
This suggests a decline in the competitiveness of Bangladesh's currency-the taka-- in international trade, s...
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