The sudden devaluation of the Chinese yuan against the dollar last month jolted the global foreign exchange market. Despite the fact that the devaluation was not very large, around 5 percent, the foreign exchange markets around the world reacted almost immediately underscoring the sensitivity of the world economy to economic and financial developments in China…. Read more »
In recent months, I have written several opinion pieces on the various aspects of inflation in Bangladesh. Inflationary pressure has been increasing again in recent months.
Simply put, as in Economics 100, a bilateral exchange rate involves exchanges of one national (home) currency for another national (foreign) currency. This is about exchanges of two different national monies.
The pivotal role of the banking sector in an economy is well-recognised. Commercial banks play multi-faceted roles in contributing to economic growth, employment and overall well-being of people.
The government has finally raised the interest rates on national savings schemes to competitive levels — a measure that it should have taken long ago.
Recent data released by Bangladesh Bank suggest that the pressure on the balance of payments has subsided somewhat. The stock of international reserves that had dipped below $9 billion