1. Study on ForeignStudy on Foreign
Exchange Rate inExchange Rate in
Bangladesh (Euro)Bangladesh (Euro)
Presented By:Presented By:
Ms. Suraya Bintey ZamanMs. Suraya Bintey Zaman
Roll : 80104049Roll : 80104049
EMBA 4EMBA 4thth
BatchBatch
University of DhakaUniversity of Dhaka

2. IntroductionIntroduction
The foreign currency rate is changing randomly.The foreign currency rate is changing randomly.
The average exchange rate of Euros was in theThe average exchange rate of Euros was in the
month of June 2009 Taka 97.14 and in the monthmonth of June 2009 Taka 97.14 and in the month
November 2010 was Taka 92.33 (as on 30thNovember 2010 was Taka 92.33 (as on 30th
November 2010)November 2010) . In this study I find it the foreign. In this study I find it the foreign
currency exchange rate is change regularly in ourcurrency exchange rate is change regularly in our
country. A nation’s choice as to which currencycountry. A nation’s choice as to which currency
regime to follow reflects national priorities about allregime to follow reflects national priorities about all
facets of the economy, including inflation,facets of the economy, including inflation,
unemployment, interest rate levels, trade balances,unemployment, interest rate levels, trade balances,
and economic growth.and economic growth.

3. Objectives of theObjectives of the
StudyStudy
 This help to understand the change ofThis help to understand the change of
exchange rate in Bangladesh.exchange rate in Bangladesh.
 This help to understand the Trends ofThis help to understand the Trends of
exchange rate.exchange rate.
 Preparing this report I get a practicalPreparing this report I get a practical
knowledge about characteristics of exchangeknowledge about characteristics of exchange
rate.rate.
 To understand the present position of foreignTo understand the present position of foreign
exchange market.exchange market.

4. Scope of StudyScope of Study
The study is very relevant and significant forThe study is very relevant and significant for
developing the understanding of the position ofdeveloping the understanding of the position of
foreign currency exchange in a country,foreign currency exchange in a country,
particularly in Bangladesh. This study will provideparticularly in Bangladesh. This study will provide
the knowledge how foreign currency exchangethe knowledge how foreign currency exchange
rate change and the behavior of it's relates withrate change and the behavior of it's relates with
market. This report is made on the help ofmarket. This report is made on the help of
Bangladesh Banks Journal and various wave-Bangladesh Banks Journal and various wave-
sites and help of some texts and report relatedsites and help of some texts and report related
books.books.

5. MethodologyMethodology
Data collected from several data sources. ThereData collected from several data sources. There
are two sources to collect data. They are-are two sources to collect data. They are-
 Primary data; andPrimary data; and
 Secondary data.Secondary data.
For the time shortage and some other problem itFor the time shortage and some other problem it
is not possible for me to collect primary data foris not possible for me to collect primary data for
the report. For this reason I use secondary datathe report. For this reason I use secondary data
to prepare this report. So this report is basicallyto prepare this report. So this report is basically
made based on secondary data various wave-made based on secondary data various wave-
site, Journal of Bangladesh Bank etc.site, Journal of Bangladesh Bank etc.

6. LimitationLimitation
 Limitation of time was one of the most importantLimitation of time was one of the most important
factors that languished the present study. Thefactors that languished the present study. The
program allotted only 4 weeks for the entire study,program allotted only 4 weeks for the entire study,
which disabled many opportunities for awhich disabled many opportunities for a
comprehensive study.comprehensive study.
 The study was limited by the size of the sample.The study was limited by the size of the sample.
 The information’s that were collected for thisThe information’s that were collected for this
purpose were mainly secondary in nature. Lack ofpurpose were mainly secondary in nature. Lack of
primary and recent data was a problem to arrangeprimary and recent data was a problem to arrange
information in a large extent.information in a large extent.
 I have not enough facility to go to foreignI have not enough facility to go to foreign
exchange market physically for prepare the reportexchange market physically for prepare the report
and get the practical knowledge properly.and get the practical knowledge properly.

7. Foreign Exchange Rate [Euro (€)]Foreign Exchange Rate [Euro (€)]
Months Exchange Rate
End
Period
Period
Average
July' 09 97.14 97.19
August' 09 98.77 98.5
September' 09 100.69 100.47
October' 09 101.72 102.31
November' 09 103.3 103
December' 09 99.33 100.93
January' 10 95.89 98.86
February' 10 94.42 94.83
March' 10 92.88 94.05
April' 10 91.68 93.09
May' 10 85.09 87.32
June' 10 84.66 84.71
July' 10 90.5 88.7
August' 10 88.13 89.7
September' 10 95.71 90.91
October' 10 97.86 98.54
November' 10 96.29 92.33
0
20
40
60
80
100
120
End Period
Period Average

8. Foreign Exchange Rate [EuroForeign Exchange Rate [Euro
(€)](€)]
0
20
40
60
80
100
120
End Period
Period Average

9. AnalysisAnalysis
 Here I see that the exchange rate of Euro isHere I see that the exchange rate of Euro is
increased and decreased in time to time. Thatincreased and decreased in time to time. That
is the exchange rate is fluctuating with theis the exchange rate is fluctuating with the
change of economy.change of economy.
 The exchange rate is increased in the monthThe exchange rate is increased in the month
of July' 09 to November' 09, in June' 10 toof July' 09 to November' 09, in June' 10 to
July' 10 and again in September' 10.July' 10 and again in September' 10.
 The exchange rate is decreased in December'The exchange rate is decreased in December'
09 to May' 10, in August' 10 and also in09 to May' 10, in August' 10 and also in
November'10.November'10.

10. AnalysisAnalysis
 The foreign exchange market began to feelThe foreign exchange market began to feel
pressure on exchange rate from June 2009pressure on exchange rate from June 2009
caused by the increasing demand for eurocaused by the increasing demand for euro
due to sharp rise in import payments.due to sharp rise in import payments.
 Bangladesh currency continued to fall sharplyBangladesh currency continued to fall sharply
to Taka 100.69 per Euro in the first week ofto Taka 100.69 per Euro in the first week of
September' 09 from around Taka 98.77 inSeptember' 09 from around Taka 98.77 in
August 2009.August 2009.
 During the period Bangladesh BankDuring the period Bangladesh Bank
intervened by supplying Euro into the marketintervened by supplying Euro into the market
in order to help ease the pressure onin order to help ease the pressure on
exchange rates.exchange rates.

11. AnalysisAnalysis
 Bangladesh bank also allowed limitedBangladesh bank also allowed limited
overdraft facility on foreign currency clearingoverdraft facility on foreign currency clearing
account with the Bangladesh Bank to NCBsaccount with the Bangladesh Bank to NCBs
and some private sector banks facingand some private sector banks facing
temporary mismatch in liquidity and relaxedtemporary mismatch in liquidity and relaxed
restrictions on swap and forward operations inrestrictions on swap and forward operations in
order to give banks some flexibility to manageorder to give banks some flexibility to manage
their liquidity.their liquidity.
 As a result the exchange rate is started to fallAs a result the exchange rate is started to fall
from the last week of December 2009 at Takafrom the last week of December 2009 at Taka
103.30 to Taka 84.66 in June 2010.103.30 to Taka 84.66 in June 2010.

12. AnalysisAnalysis
 The exchange rate is started to increaseThe exchange rate is started to increase
again from July 2010 at Taka 88.73 to theagain from July 2010 at Taka 88.73 to the
last week of October 2010 at Taka 98.54 forlast week of October 2010 at Taka 98.54 for
same cause.same cause.
 In September 2010 the exchange rate ofIn September 2010 the exchange rate of
Euro was fluctuate randomly.Euro was fluctuate randomly.
 The exchange rate is again fall from firstThe exchange rate is again fall from first
week of November 2010 and randomlyweek of November 2010 and randomly
fluctuate.fluctuate.

13. ConclusionConclusion
In this survey I want to identify the exchange rate of euroIn this survey I want to identify the exchange rate of euro
important for various sectors, namely education, importedimportant for various sectors, namely education, imported
goods from European countries. I found that the exchangegoods from European countries. I found that the exchange
rate is changed according to the economic position of ourrate is changed according to the economic position of our
country. The demand of euro day by day increased but thecountry. The demand of euro day by day increased but the
supply of euro is not sufficient in our country. So thatsupply of euro is not sufficient in our country. So that
exchange rate of euro is going high.exchange rate of euro is going high.
Now a days the world become in the free market economy.Now a days the world become in the free market economy.
In this connection our manufacturers produces world classIn this connection our manufacturers produces world class
finished goods for export by cheap rate other than countries.finished goods for export by cheap rate other than countries.
That will be increase earning sources. For this, we have toThat will be increase earning sources. For this, we have to
careful about Balance of Payment of the country andcareful about Balance of Payment of the country and
exchange rate of foreign currency (euro) becomes in a stableexchange rate of foreign currency (euro) becomes in a stable
exchange rate.exchange rate.

14. Thank you forThank you for
listening mylistening my
PresentationPresentation