...Bangladesh is an agricultural nation. Around 48% individuals straightforwardly and more than 80% in a roundabout way rely on upon agribusiness. The Food and Agriculture Organization (FAO) considered Bangladesh as one of the thirty–seven nations in "emergencies" because of the ascent in nourishment costs. Bangladesh still is a creating nation. Around 43% are living underneath $1 a day. Horticulture alone is the most noteworthy appropriation gave area. Administration of Bangladesh needs to spend this extensive measure of cash to keep the cost of every day necessities inside the acquiring force of poor and lower working class individuals. Regardless of those endeavours cost of vital sustenance change a great deal in Bangladesh. Thus minimized...
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...Introduction Bangladesh is a country of more than 140 million people, and it is one of South Asia’s least developed countries. The country has under gone a major shift in its economic philosophy and management in recent years. At Bangladesh’s birth, the country embraced socialism as the economic ideology with a dominant role for the public sector. But, since the mid-seventies, it undertook a major restructuring towards establishing a market economy with emphasis on private sector-led economic growth. Bangladesh achieved good economic progress during the 1990s by adopting a series of structural and economic reform measures. The stabilization program reduced inflation as well as fiscal and current accounts deficit and established a healthy foreign exchange reserve position. Economic performance improved with gross domestic product (GDP) growth averaging 5 percent in the 1990s compared with 4 percent in the preceding decade. The acceleration in economic growth was accompanied by decreased incidence of poverty and a distinct improvement of some key social indicators. Rapid growth in food grain production has been a remarkable feature of the country’s economic performance in recent years. In FY2000, Bangladesh reached self-sufficiency in food grain production. A combination of factors accounts for the robust growth of the agriculture sector, and in particular of food grains. According to a World Bank estimate, Bangladesh has the 36th largest economy in the world in terms of GNP based...
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...Monetary Policy of Bangladesh Lecture Synopsis: 2 NSU, MBA Program Dr. Salehuddin Ahmed(Sld) BUS 530 (Section – 1 & 2); SPRING, 2013 Introduction Both in developed and developing economies, monetary policy seeks to maintain price stability accompanied by sustained stable output growth in the face of internal and external shocks that are faced from time to time. For developing economies like Bangladesh with significant underemployment/under exploitation of production factors, stimulating higher growth is imperative for rapid reduction and eventual elimination of endemic poverty, and is therefore an overriding priority. The stimulus provided by monetary policy in accommodating the growth aspirations must not however jeopardize macroeconomic stability and future growth; and the pursuit of monetary policy comprises of various supportive measures to attain the highest sustainable output growth while adjusting smoothly to internal and external shocks that the economy encounter from time to time. History and Objectives of Bangladesh Monetary Policy Objectives of the monetary policy of the Bangladesh Bank as outlined in the Bangladesh Bank Order, 1972 comprise of attaining and maintaining of price stability, high levels of production, employment and economic growth. In the decades of seventies and eighties, monetary policy in Bangladesh was conducted with full direct control on interest rates and exchange rates, as also on the volumes and directions of credit flows...
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...ASSIGNMENT TWO | Research on the currency of Bangladesh | | GROUP MEMBERS:IFTESHAM ARA JAHAN 082604030FARIHA NOWSHIN HAQUE 1020276030MINHAZUR RAHMAN 081314030MUSA HABIB KISHAN 0930442030NUSRAT MINALLAH SHOSHI 0910283030SIDRATUL MUNTAHA KHAN 0920517530 | Table of Contents Analysis of Bangladeshi Taka (BDT) against US Dollar($) 3 Factors that influences BDT 5 Analysis of Macroeconomic variables 7 Income level 7 Fig: Income receipts of Bangladesh from 2005-2012in US dollar 8 Income payments (US dollar) in Bangladesh 8 Effects of inflation on income 9 Effects of interest rates on income level: 11 Theory of Interest Rate Parity and BDT 12 Theory of Purchasing Power Parity 14 Theory of International Fisher Effect against BDT 16 Regulations on foreign currency transfers/remittances 16 Analysis of investment opportunity for US-based MNC 17 Analysis of Bangladeshi Taka (BDT) against US Dollar ($) Exchange rates play a vital role in a country's level of trade. This is critical to almost every free market-oriented economy in the world. Numerous factors such as inflation, interest rates, current-account/trade balance, public (government) debt and political environment determine exchange rates and all are related to the trading relationship between any two countries. The exchange rate, measured as a number of units of local currency per unit of foreign currency, is the price of the...
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...EXCHANGE RATE REGIME: IMPACT ON MACRO ECONOMY OF BANGLADESH by Liza Fahmida A project submitted in partial fulfillment of the requirements for the degree of Professional Master in Banking and Finance Examination Committee: Dr. Sundar Venkatesh (Chairperson) Dr. Juthathip Jongwanich Dr. Yuosre Badir Nationality: Bangladeshi Previous Degree: Master in Finance and Banking University of Dhaka Bangladesh Scholarship Donor: Bangladesh Bank Asian Institute of Technology School of Management Thailand May 2012 i ACKNOWLEDGEMENT The dissertation paper entitled “Evolution Of Exchange Rate Regime: Impact On Macro Economy Of Bangladesh” has been prepared for the partial fulfillment of Professional master in Banking and Finance (PMBF) program conducted by School of Management, AIT, Thailand. I would like to offer my wholehearted gratitude and respect to a good number of people who offered encouragement, data and information, inspiration and assistance during the course of constructing this dissertation paper. It would be difficult to prepare the paper and to present it in a lucid manner within stipulated time without the help of my guide teacher Dr. Sundar Venkatesh, Adjunct Faculty, School of Management, Asian Institute of Technology, Thailand. His utmost care, constant support and meticulous supervision guided me through the process. I am indebted to Begum Sultana Razia, General Manager, Monetary Policy Department, Bangladesh Bank, whose sincere co-operation and valuable...
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...country's exports and imports of goods, services, financial capital, and financial transfers. The current account represents a summary of the flow of funds between one specified country and all other countries due to a purchase of goods and services, or the provision of income from financial assets. The capital account represents a summary of the flow of funds resulting from the sales of assets between one specified country and all other countries over a specified period of time. Thus, it compares the new foreign investment made by a country with the foreign investments within a country over a particular time period. Transactions that reflect inflows of funds generate positive numbers for the country’s balance, while transactions that reflect outflows of funds generate negative numbers for the country. Current Account: The current account is one of the two primary components of the balance of payments, the other being capital account. It is the sum of the balance of trade (net revenue on exports minus payments for imports), factor income (earnings on foreign investments minus payments made to foreign investors) and cash transfers. Calculating Current Account: (Export – Import) + Net Income (abroad) + Net Current Transfer Current Account Overview of Bangladesh: From the chart below we can observe the last five year current account condition year 2007 – 2011, the chart states that Bangladesh had a surplus condition all...
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...Causes of Inflation: A Study in the Context of Bangladesh Mohammad Nayeem Abdullah1 Robaka Shamsher2 Newaz Ahmed Chowudhury3 Abstract In Asia, Bangladesh is one of the hardest hit by the current wave of inflation and oil price hike. The economy has been observing double digit inflation growth on point-to-point basis since July 2007. In Bangladesh, the correlation between per capita income and food weight in total Consumer Price Index (CPI) is one of the highest in the world and the economy is vulnerable to sharp hikes in fuel and non-fuel commodity prices. The BDTUS$ exchange rate has been depreciating steadily for some time, reaching a record high of BDT 72.70 per USD in January 2011, which has direct impact on food inflation that Bangladesh is currently experiencing. An International Monetary Fund (IMF) study shows food prices on headline inflation has been a staggering 55.9 percent in Asia in 2007, whereas the figure was 34.1 percent in the 2000-06 period. The researchers highlight that a further depreciation of the BDT could lead to additional cost push inflation for Bangladesh. This article attempts to investigate causes and consequences of inflation on the economy of Bangladesh. This paper also reviews the past record of the inflation and makes a forecast on the possible movement of inflation. At the end on the paper the researchers forward some strategic points that might be useful to reduce inflation. Keywords: Food inflation, oil price hike, general inflation, world food...
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...REPORT ON Monetary Policy of Bangladesh PATUAKHALI SCIENCE AND TECHNOLOGY UNIVERSITY Monetary Policy of Bangladesh SUBMITTED TO M. Kazi Tamim Rahman Lecturer Department of Agricultural Economics and Rural Sociology Faculty of Business Administration and Management SUBMITTED BY Group: 01(Warrior) Level-3, Semester-1 Faculty of Business Administration and Management Name of the students | Reg. No. | Roll No. | Md. Kamruzzaman (L) | 00660 | 01 | Shuvradeb Barai | 00668 | 09 | Abu Zafour | 00680 | 21 | Sahana Parveen | 00666 | 07 | Nazmul Alam Siddiqui | 00565 | 25 | Money and Banking Course code: FBK 312 SUBMISSION DATE: PATUAKHALI SCIENCE AND TECHNOLOGY UNIVERSITY Acknowledgement At first we desire to express our deepest sense of gratitude of almighty Allah. With profound regard we gratefully acknowledge our respected course teacher M. Kazi Tamim Rahman, Lecturer, Department of Agricultural Economics and Rural Sociology, Faculty of Business Administration and Management, for his generous help and day to day suggestion during the preparation of this report. We like to give thanks especially to our friends and many individuals, for their enthusiastic encouragements and helps during the preparation of this report us by sharing ideas regarding this subject and for their assistance in typing and proof reading this manuscript. Table of Contents Chapter – 1 ...
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...recent monetary policy of Bangladesh BANK The central bank declared its half-yearly monetary policy aiming to contain inflationary pressures through discouraging credit flow to unproductive sectors and for speculative purposes including real estates and investments in stock market beyond affordable limits. While releasing the monetary policy statement (MPS) for July-December period of the current fiscal year, The governor of the central bank said that the monetary policies in fiscal year 2011-12 will need to continue in the restraining stance on credit growth as pursued in fiscal year 2011. He also told that the policies, as before, will selectively bear down on growth of credit for wasteful, unproductive and speculative uses while ensuring adequate credit flows for all productive pursuits in manufacturing, agriculture, trade and other service sector. Under the new monetary programme, domestic credit growth will come down to 20 per cent in June 2012 from an estimated 27 per cent in June this fiscal while credit growth to the private sector will be brought down to 18 per cent next fiscal from an estimated level of 25.5 per cent in the current one. Explaining what the central bank would consider lending for speculative purposes in particular, BB Senior Consultant Mr. Allah Malek Kazemi said credit flows for purchases of land and apartments (flats), investments in shares beyond affordable levels and many other areas where bubble-and-bust situations prevail will be treated...
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...since the beginning of the generalized floating in 1973 have led policy makers and researchers to investigate the nature and extent of the impact of such movements on the volume of trade. However, the studies dealt with the exchange rate volatility and its effect on trade flows have yielded mixed results. On one hand, a number of studies have argued that exchange rate volatility will impose costs on risk averse market participants who will generally respond by favoring domestic to foreign trade at the margin. The arguments view traders as bearing undiversified exchange risk. If hedging is impractical or costly and traders are risk averse, risk attuned expected profits from trade would fall When exchange risk increases. In Bangladesh free floating exchange rate was adopted since May 31st. 2003. At the...
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...Bangladesh began implementing structural policy reforms to increase the market orientation of its economy in the late 1970s. The authorities adopted significant reforms in agriculture, industry, and trade, and also pursued reforms in the financial and infrastructure sectors. These reforms helped accelerate growth from an annual average of 3 percent in the 1970s to 4 percent in the 1980s and to 5 percent in the 1990s. Sound and sustained macroeconomic management ensured macroeconomic stability, contributing to Bangladesh’s ability to maintain one of the lowest growth volatilities in the world. Major Policy Reforms Contributed to Growth Acceleration: * Agricultural policy * Industrial policy * Trade policy * Infrastructure policy * Financial policy * Macroeconomic policies * Human Development policies Macroeconomic policies Following the initial debacle of the 1972–75 periods, Bangladesh was able to maintain a broad degree of stability of macroeconomic policies, as reflected in relatively low inflation and a stable real exchange rate. Fiscal, monetary and exchange rate management was broadly on track for most of the period until around the end of the 1990s. This long-term good macroeconomic management served Bangladesh well, contributing to incentives for private investment and exports. Inflation has now been reduced to 3–4 percent annually (Chart 7). The correction of the macroeconomic imbalances started in the late 1970s and continued...
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...PRICE INFLATION IN BANGLADESH PRICE INFLATION IN BANGLADESH Course : Economics Prepared for: Dr. Samir Kumar Sheel Assistant Professor Department of Marketing, FACULTY OF BUSINESS STUDIES Prepared by: A.T.M. Golam Kibria Khan EMBA, 19TH BATCH, ROLL: 41119055 Department of Marketing FACULTY OF BUSINESS STUDIES UNIVERSITY OF DHAKA DATE OF SUBMISSION : August 02, 2011 Letter of Transmittal August 02, 2011 Assistant Professor, Dr. Samir Kumar Sheel Course Teacher: Economics Department of Marketing Faculty of Business Studies University of Dhaka Dear Sir, With great pleasure we are submitting our Term Paper on “Price Inflation in Bangladesh”. We have found this report as of informative, beneficial as well as insightful. We have tried our level best to prepare an effective & creditable report. The report contains detail description upon Inflation and the Price inflation in Bangladesh. Here we have gathered information through different sources. I honestly hope that this analytical assessment will identify the causes and impacts of price inflation of Bangladesh. Therefore we hope you will find this report worth all the effort we have put in it. Sincerely Yours, A.T.M. Golam Kibria Khan Executive Summary The current wave of inflation has been eroding purchasing power of the low and middle income people in Bangladesh, as they need to pay much higher bills for food grain and other commodities. The Exchequer of Bangladesh, which absorbs the petroleum price hike...
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...01 01 02 Body of the term paper Monetary Policy Reason of publishing 04 Types of Monetary Policy 05 Monetary Policy in Bangladesh 06 Tools & Strategy of Monetary Policy 06 Major tools used by Bangladesh Bank 07 Policy Target 12 Limitations of Monetary Policy 13 Findings of the study Chapter-03 03 Scope & Objective of Monetary Policy Chapter- 02 03 14 Conclusion 14 Bibliography 14 Chapter- 01 Introduction “Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability. The official goals usually include relatively stable prices and low unemployment. Monetary theory provides insight into how to craft optimal monetary policy. It is referred to as either being expansionary or contractionary, where an expansionary policy increases the total supply of money in the economy more rapidly than usual, and contractionary policy expands the money supply more slowly than usual or even shrinks it. Expansionary policy is traditionally used to try to combat unemployment in a recession by loIring interest rates in the hope that easy credit will entice businesses into expanding. Contractionary policy is intended to slow inflation in hopes of avoiding the resulting distortions and deterioration of asset values. In this report I tried to show that how monetary policy...
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...FINANCIAL CRISIS: IMPACT ON BANGLADESH K.A.S. Murshid BROTEE July 19, 2009 The author would like to gratefully acknowledge the contribution of Dr. Anwara Begum, Research Fellow, BIDS and Mr. Zabid Iqbal, Research Associate, BIDS. The author is a Research Director, BIDS. EXECUTIVE SUMMARY (TBC) I Introduction The world economy is currently experiencing the worst global financial crisis since the Great Depression. While major world economies have taken a massive hit resulting in negative growth rates in key countries or regions, including the US, EU and Japan, the contagion also spread to emerging developing countries like China, Brazil, India and South Africa, as well as to the countries of South East Asia and Latin America. The magnitude of impact seems to depend on the extent of integration with the rest of the world (or to use World Bank jargon, the extent of liberalization that has taken place). The impact on LDCs like Bangladesh has been muted in the first, and even the second round. However, there is growing evidence that third round impacts are making themselves felt, manifested in declining exports, declining migration of labour, growing number of sick industries, industrial unrest, and reduced growth. There are also fears that poverty and unemployment may be exacerbated and MDG targets could become jeopardized. Countries like Bangladesh are interested in understanding...
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...Management Department Assignment Cyclical Effects of Inflation in the Economy of Bangladesh Course Name:- Micro Economics Course Number:- 1208 Submitted To Mr. Shah Redwan Chowdhury Assistant Professor Management Studies Jagannath University Submitted By Amity (Group-07) (114922-114940) 6th Batch, Sec:-B Management Studies Jagannath University Sl/No | Name | Roll | Status | 01 | Abul Hasan Emon | 114922 | Absent | 02 | Ashif Manowar Oli | 114924 | Present | 03 | Fatema Tuz Zohora | 114926 | Present | 04 | Tanvin Haque Mitara | 114928 | Present | 05 | Md. Rafiqul Islam | 114930 | Present | 06 | Khandaker Arif Hossain | 114932 | Absent | 07 | Touhidur Rahman Al-Baky | 114934 | Present | 08 | Rajib Sarker | 114936 | Absent | 09 | Bidyut Dey | 114938 | Present | 10 | Md. Farhad Hossain | 114940 | Present | Acknowledgement:- We have taken efforts in this assignment. However, it would not have been possible without the kind support and help of many individuals. We would like to extend our sincere thanks to all of them. We are highly indebted to Mr. Shah Redwan Chowdhury Sir for his guidance and constant supervision as well as for providing necessary information regarding the assignment & also for his support in completing the project. We would...
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