Devaluation Necessary
ISPR requests not to get misled by rumours over security of St. Martin’s
Inter Services Public Relation Directorate (ISPR) has urged all not to be misguided by rumours spreading through social media over the security of St. Martin’s island centering Myanmar's ongoing internal conflict near the island.
Was devaluation necessary?
Under the crawling peg system, Bangladesh Bank has set the intermediate dollar price at Tk 117 and instructed banks to trade freely around this rate. A few days ago, economists advocated for a 'floating exchange rate' to maintain the dollar's value as fully market-oriented. They argued that the exchange rate between our currency and foreign currencies should be determined by market forces, with no authority intervening. However, Bangladesh Bank opted not to introduce a floating exchange rate, instead implementing the crawling peg system to manage the exchange rate. Unlike a floating exchange rate, a crawling peg system is not entirely free and open, as it involves some degree of control by the authorities. In this system, the upper and lower limits of the currency exchange rate are set, and the currency must be exchanged within these specified limits.
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