The document discusses the increasing exchange rate of the Bangladeshi Taka against other major world currencies such as the US Dollar, Euro, and British Pound. It provides data on Bangladesh's foreign exchange reserves, trade deficit, foreign direct investment, and foreign aid from 2010-2012. An increasing exchange rate is caused by reducing foreign reserves, a growing trade deficit, and decreasing foreign investment. A high exchange rate impacts Bangladesh through higher inflation, increased production costs, reduced competitiveness, and a lower standard of living. The document recommends ways to stabilize the exchange rate such as discouraging imports, attracting more foreign investment, stopping money laundering, and minimizing the trade deficit.

1. WELCOME

2. GROUP NAME: ‘SYNERGY’
NAME ID
MD. SALIM AHMED 07302120
MD.ARIFUL HAQUE CHOWDHURY 07302037
MD. TANBIR AHMED 07302030

3. Increasing of Exchange rate in
Bangladesh: Causes and Impact
in BD Economy.

7. An exchange rate is the current market
price for which one currency can be
exchanged for another

8. Exchange rate system
Fixed Floating Pegged
Exchange Exchange Exchange
rate rate rate

9. Factors Determining the Exchange rate
Foreign
Exchange
reserve
Export
Balance of
&
Payment
Import
Exchange
rate

10. Current trends of exchange rate against US Dollar

11. Current scenario of Exchange rate in Bangladesh
against world major currencies
Convert from Convert to Exchange rate As Of
Bangladeshi Taka US Dollar 0.01217 5/25/2012 3:00 AM
(BDT)
Bangladeshi Taka Canadian dollar 0.01250 5/25/2012 3:00 AM
(BDT) (CAD)
Bangladeshi Taka Australian Dollar 0.01246 5/25/2012 3:00 AM
(BDT) (AUD)
Bangladeshi Taka Indian Rupee (INR) 0.67648 5/25/2012 3:00 AM
(BDT)
Bangladeshi Taka Euro (EUR) 0.00971 5/25/2012 3:00 AM
(BDT)
Bangladeshi Taka British Pound (GBP) 0.00777 5/25/2012 3:00 AM
(BDT
Bangladeshi Taka Saudi Riyal (SAR) 0.04564 5/25/2012 3:00 AM
(BDT)
Bangladeshi Taka Japanese Yen (JPY) 0.96912 5/25/2012 3:00 AM
(BDT)

12. Causes of increasing Exchange rate in Bangladesh
Reducing Foreign
Reserve
Trade Deficit
Reducing FDI

13. High Subsidy in Quick rental
power plant for importing
furnace Oil
Foreign aid (receipt
and Payment)
Money laundering

14. Foreign reserve (2010-12)
12000 11174.4 11158.6 11316.4
10730.6
10381.7 10066.8 10193
10000 9634.9 9386.5 9579.4
8000
6000
4000
2000
0
December january February March April
2010-11( In million US $) 2011-12 (In million US $)

15. FDI inflow (1996-2011)

16. Foreign aid: Receipt and payment
(in crore $,july –Novembor)
receipt payment with interest
61.42
41.38
2010-11 2011-12
-36.86 -40.93

17. Impact of increasing exchange rate
Inflation
Increasing the cost of production
Decreasing the competitiveness
Decreasing standard of living

18. Recommendation
 Discourage import of luxurious goods like-expensive smart
phone, IT product, Automobiles, furniture etc.
 Bangladesh bank must keep foreign reserve above 10 billion.
 Investment board must takes sufficient initiatives to attracts more
& more FDI.
 Strict rules must be enforce by Bangladesh bank to stop money
laundering.
 A Special fund should be formulate to meet call up money or
provide liquid money by Bangladesh bank or IMF.
 Free flow of remittance must be ensured.
 Minimize trade deficit
 Devaluation of taka must be balanced.
 Need sound govt. policy and implementation of policy.

19. Thanks For Being With
Us