Dhaka, April 18 -- A price correction in March brings the Bangladesh currency to a more competitive level in foreign trade, after having stayed significantly overvalued against the US dollar in January and February.

The real effective exchange rate (REER) index dropped to 101.90 in March 2025, implying that the taka is now overvalued just by Tk 2.30 against the greenback in currency exchange.

In its latest report the central bank says the decline in the REER index reflects a marginal improvement in the competitiveness of the taka in international trade, driven by favourable price differentials between Bangladesh and its trading partners.

The Bangladesh Bank regularly reports to the government on the nominal, nominal-effective and real-...