Country Report Bangladesh January 1996 Main report

Economic Policy & Economy: The taka resumes its downward path

After maintaining a steady rate of Tk40.10:$1 since March, the taka was devalued against the dollar in two stages in September and October, to Tk40.75:$1. This represented a nominal devaluation of 1.3% on the year- earlier parity. Many commentators expect the value of the taka to fall further against the dollar, particularly after the 10% devaluation of the Indian rupee against the dollar in the last quarter of 1995. Some further adjustment is therefore likely in the next few months, but it will not be the double-digit fall that some international agencies are reported to advocate.

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