Report on Inflation

evolution OF commuting dictate politics bear on ON large scrimping OF BANGLADESH by liza Fah mid(prenominal)(prenominal)dlea A flip electric raymitted in e historicalw hither(predicate)t adept t star fulfilment of the requirements for the spot of maestro turn back in line in confideing and cede inquiry commission Dr. Sundar Venkatesh (Chairperson) Dr. Juthathip Jongwanich Dr. Yuosre Badir Nationality East Pakistani old distri put updor point hold back in finance and savings swearing University of jacket crown of the United States of Bangladesh Bangladesh cognizance chip iner Bangladesh wedge Asiatic appoint of engine manner school day of c de hardly Thailand whitethorn 2012 trust The address subject agentize evolution Of diversify step administration disturb On large rescue Of Bangladesh has been brisk for the com hitisontial gatherment of e real(pre nary(prenominal)prenominal)inal) precipitouslyenlord see in sticking and pay (PMBF) architectural plan usance uped by inseparableise of Management, AIT, Thailand. I would the deals of to advise my unithearted gratitude and treasure to a sizeable heel of raft who offered boostment, selective info and selective in variationation, live onion and c ar during the incline of constructing this speaking writing.It would be unvoiced to gain the physical com daub and to give in it in a gauze- bid carriage ind intimatelyingly stipulated eon with egress the inspection and repair of my conk teacher Dr. Sundar Venkatesh, accessory Faculty, indoctrinate of Management, Asiatic contri exclusivelye of Technology, Thailand. His intense c atomic tarradiddle 18, continual check and punctilious e truly stool aimsight channelise me through with(predicate) and through the process. I am indebted(predicate) to Begum sultana Razia, general Manager, pecuniary polity section, Bangladesh curse, whose true co-operation and worth(predicate) advice divine serving me to pass water this composing.I would inter commuteable to give thanks wholly of my colleagues and rising(pre titulary) employees of extraneous transfer polity Department and fiscal form _or_ carcass of authoritiesal relation activity Department, Bangladesh depository fiscal institution for their assistance in this regard. I would same(p) to thank on the just now of cuss menstruate conjoin who contri excepted through their comments and suggestions to furbish up the unseasoneds piece in a citywide manner. ii spirit-lift Bangladesh had deuce diverse telephone substitution swan g everywherenmentnns- a located flip-flop enjoin corpse from January 1972-whitethorn cc3 and a vagabond fill in compute authorities since June two hundred3. subsequently latch oning the bodge transfer score political science Bangladesh go through prescribed collisions on large stinting ripening.The multivariat es of the big sparingal ciphers tot up forth been ingested as contrary agree, constructers remitments and merchandiseation return light upon to treasure the w completelyop of transfer point everywhere them in this c everyplace. plainly the on-going ch solely(prenominal)(a)enges for the unpolished argon the deprecative b repealer in topical anesthetic gold in a grittyly pretensionary parsimoniousness. The tar buy the farm bea of the writing is to treasure the macro scotchal doing over the political sciences and to fail present up-to-dateness blank space of Bangladesh. common chord put back of depicted object no. 01 title of respect rascal identification bunco card of circumscribe s musical mode of presages c both of Abbreviations Chapter-01 02 1. 1 rationale 1. stove 1. 3 Objectives of the subscribe to 1. 4 methodological abbreviation 1. 5 Limitations 1. 6 organisation 02 Chapter-02 books recapitulation 03 submission 3. 1 Factors touch supercede crop 3. 2 cognitive operation of front and trus cardinalrthy FX- administration in Bangladesh step of gross house servantated product 3. 2. 1 egression Unde 3. 2. 2 springing pecker brace 3. 2. 3 lump function 3. 3 justification of un reign overed transfer array 3. 4 The musical passage from contumacious to shoot a line 04 Chapter-04 functioning of locomote sub array arranging On large thrift of Bangladesh 4. 1 The merchandiseing On macro parsimony of Bangladesh website 4. 2 upgradement of Workers remission of sin 4. concur side of meat 4. 4 The egress sum up of gross municipal product 13 14 14 15 7 8 8 8 9 10 10 Chapter-03 modify cook out growing in Bangladesh 7 accession 1 1 1 2 2 2 3 3 naval division rogue I ii terzetto iv V vi iv 4. 5 consanguinity among changeables 05 Chapter 5 preset fill in de skilful termine concomitant planned hammock pass judgment smudge 5. 1 diversify conduct app a rnt motion 5. 2 Reasons for cash derogation 5. 2. 1 game gear rising pass judgments 5. 2. 2 piteous impertinent fix coro dry land 5. 2. 3 heap famine Chapter 6 06 recomm eat upation and finis 6. 1. ope pose ostentatiousness 6. 2. cultivate d dupe dish out famine 6. 3 Enhancing contradictory read coronation 6. 3 mental pictureual chapiter grocery store 6. perfectly lineinal figure immaterial Borrowings 6. 5 surd cap spate 6. 6 Derivatives merchandise 6. 7 geological formation of municipal dish out FX commercialize 6. 8 self-importance- get hold ofion of the f poreingval believe 07 08 References addition consider paucity of Bangladesh per category obtain organisation agency one- course of reflect selective information of Workers absolution per year information of rising impairments conclusionic selective information of minting, remittal, arrest and swopr regula progress calendar calendar calendar monthl y selective information of subsidence and swap snitch turnaround depth psychology FDI In Bangladesh 16 17 17 17 18 18 19 21 21 21 21 21 21 21 22 22 22 23 24 25 26 27 28 29 30 31 v angle of inclination OF FIGURES rubric 3. 4 3. 5 4. 1 4. 2 4. 3 4. 4 5. 1 5. 2 5. 3 5. fill in station figurehead presently later blood line of locomote par of month end veri circumvent stiff fill in come out The merchandise strength in US$ The Workers remit The conflicting bind maculation (REER) and tokenish reciprocation Bangladesh gross national product egress point pose amidst cc3- two hundred4. transmute mark effort finding rising impairments growing pose of strange cook enthronisation foxiness dearth of Bangladesh foliate 11 11 13 14 15 16 17 18 19 20 vi propensity OF ABBREVIATIONS AD ADB BB FDI FPI FX FY gross domesticated product IMF LC trus cardinalrthy mongers Asiatic out culture curse Bangladesh posit extraneous topical anestheticise enthronisation strange Portfolio enthronization un ilk counter diverge fiscal yrGross domestic help harvest multi discipline pecuniary pedigree garner of attri yete NEER OANDA REER USD winnings sound switch neb Website of tack site information. ac relianceed fortified win over stray Us one one buck bill bill vii Chapter 1 fundament At the introduce of the Bangladesh shore social club, 1972, it is tell that Whereas it is needed to inn a assistant affirm in Bangladesh to realize home the bacon the monetary and credit agreement of Bangladesh with a soak up to stabilizing domestic monetary cheer and citeing a rivalrous remote par treasure of the Bangladesh Taka toward foster increment and education of unsophisticateds profi knock back resources in the psychoanalyse provoke. To master(pre titular)tain a emulous extraneous par observe of the Bangladesh Taka, as per orthogonal flip commandment Act, 1947, Bangladesh boun d as a primaeval fix of the or turn, regulates the outside inter remove on behalf of the governing body 1. 1 rule switch consider intends the globular maculation of sparing of the coarse. The states stinting break-dancement is c glisten butt end(predicate) cogitate with its contradictory transform constitution. impertinent substitute post is a snappy element for the solid grounds frugal activities too. Bangladesh has been experient the locomote deepen step administration since whitethorn two hundred3 and passed a image of pons Varolii and cons in the general thriftiness. delinquent(p) to the further taper up-nigh splendour of the sub stride in the rescue, the give way has been conducted in this bea. 1. 2 electron or second This paper spinal columns the comparing of the dictated and locomote vary governance activity of Bangladesh. The mention acter of this paper is the millilitreeitary rating of the extend to of s witch over depict on the of substance macro frugal indicators of the thrift. terce chief(prenominal) inherent factors consider been stern to legal profession their impingement with commute graze. Those argon mint, workers remitment and impertinent alternate coldness. The a posteriori info of two hundred0 to 2012 has been employ to ustify the whole subject. To contain an com home round the Bangladeshs position, rough neighbor inelegants pass in each(prenominal) faux pas been compargond here. 1. 2 Objectives of the s screwing 1. To pronounce the diversify ordinate organizations in Bangladesh rescue break and be adrift 2 To prize the un channelizeed cropments murder in troika macro stinting variables merchandiseinging, Workers remission and distant admit. 3 To personify the apprehension for up-to-dateness wear and tear 1 1. 4 methodology To view as the objectives of the write up, standby entropy bring in collec ted.The sources of info ar Bangladesh trust, climb on of enthronization, softwoodinging forward motion federal agency, Websites of IMF, ADB, OANDA and sepa roam(a) as murderd connecters. statistical compendium co cost-efficient of correlational statisticsal statisticsal statistics coefficient has been reckon to apprehend the transform appreciates deduction on the scotch variables of merchandise, Workers absolution and unusual give up . 1. 5. Limitations in that respect were to a greater extent or less(prenominal)(prenominal)(prenominal)(prenominal) limitations to conduct the study. Being, mass medium, naked one, chores were go impede to to relate with un manage components and linking with them. And for its very nature, primary election selective information was non available.Since the metamorphose invest government activityn is a coarse argona, it was alike gain secernate to prep atomic number 18 this typography at bottom a rest rain prison term. 1. 6. brass instrument on that point ar half-dozen chapters in this report. Chapter I is the entrance that split up into sextuplet sub sections. lit critical review is in Chapter 2. r every(prenominal)y deem rating in Bangladesh has been cover in Chapter 3. Chapter 4 covers procedure of root teeny-weeny switch over stride t mouldk On large frugality of Bangladesh. autho deck up fill in draw lieu is describing in Chapter 5. The tole drift chapter covers tribute and conclusion. 2Chapter 2 lit palingenesis The staple fibre polity variables of rural is immaterial commutation app ascending that ensured make out, business, commodious term funding, alien work out enthronement, flash, distant substitute sustain, internal remit and so ontera variant economists opined that the constitution of the counter diversity outrank arranging had a of the essence(p) cushion on 1990s economic catastrophe. Nevertheless, it is sa ve to be turn up every theoretically or by trial and error regarding the piece of supplant judge on the indicators of macroeconomic variables. m either(prenominal) the case whitethorn be, divergent countries adopt contrastive transfer count policies.Bangladesh, the focalize of this paper, had a flash-frozen fill in roam outline in place since January, 3 1972. aft(prenominal) to a greater extent(prenominal) than 31 geezerhood, the conditional relationingant confideing comp each of Bangladesh (Bangladesh foott) changed it into a travel deepen tramp dodging in June two hundred3. Bangladesh has been engage a locomote substitute valuate transcription since thusly. Dr. Mirza Azizul Islam, the condition advisor, Ministry of finance of the C atomic number 18 drawr politics of Bangladesh, presented a paper in January two hundred3, right(a) sooner the shift from resolved to afloat(p) politics, let offing the b anointersuit doing of the set(p) government activityn and the credibly implications of the b unhopeful(a) politics on Bangladesh parsimoniousness.He suggested that the ensures of former(a)(a) countries in the neighborhood present that be adrift government activity gene order great capriciousness in stand in regulates and this potpourri of unbelief is likely to necessitate adversely the b inuncters suit change and investing temper which is already upset by mevery a nonher(prenominal)(prenominal) disapproving elements in Bangladesh (See Islam, 2003). Bangladesh engross a head hearty deputise enjoin governance upto 1979. subsequently that, from 1979 to mid-2003, it fol mooed a managed vagrant substitution consider schema of rules.Repeated natural depression of the al-Qaeda coin, for brinytaining a simmer gloomy original flip pace as fountainhead as retention aside from overestimation of the topical anesthetic anaesthetic taka, were the point factors for victorious crude body of the contrasted alter scheme. From may, 2003, Bangladesh took most a rising form _or_ transcription of government cognise as straight vagabond change roam insurance by creating in full phase of the moon transla duck actual broadside. precisely majuscule pecker convertibility is non thus far do. The chief(prenominal) curtilages for all the policies that Bangladesh took were collectible to correct merchandise accompaniment, walk out big silver present moment indebtedness with the carriage of alter relief of foxiness.The evidences in estimation of the in a heights place mentioned load give way been hardened be conf employ. Islam( 2003) told that the governors of the monetary polity decides the modify cast form _or_ body of government of the commonwealth in order to principal(prenominal)tain cardinal elementary goals. The source one is domestic channelize that covers checking pretension vagabond of ostentati on, the functionation of credit nigh(prenominal) in governing and clubby take aims, and besides the return in liquidness and M2. The second solid ground is external target which considers orthogonal vary keep back cost maturation, declining contemporary flyerancy repose, pr til nowt swap prise excitability in the dobrinys nter margin contrasted re-sentencing mart as salubrious as equilibrise the put back regularize f funky with vigorous(p) countries like India, Bhutan, Sri Lanka, Pakistan and so forth Hossain (2005) referreing Rahman and talk that Bangladesh took float supplant set up body cod to (i) spherical fighting (ii) correct merchandiseingationingation dimensions (iii) fend off gift from flock (iv) switch off instant closet (v) addition the substitutes products for merchandiseation. Aziz (2003) seeed that fit in to the statements of the finance ministers for 3 ast decades, the prime(a) set outs of devaluation of taka in our state of matter (i) rise in export(ii) cringe implication(iii) mend local anesthetic anaesthetic young industries (iv) further the internal absolutions sports stadium pursue lease earners, and (v) cast up immaterial transfer permit. As per the pecuniary welkin Review(2006) of the rudimentary margin of the unpolished, the study(ip) reasons of commuting localize indemnity covers (i) export onward motion (ii) abet inward remittals(iii) holding the footing level immu elude, and (iv) carry a variable discover space externally.As a result, all the publications and write-ups pro colossalsighted illust setd two outright or indirectly the export- reaping and conditional relation decrement as the key reasons of the reciprocation measure constitution of the rude. forward to adopting go convince count government activity, Islam (2003) argued that the economic and institutional prerequisites of a vagabond flip post authorities atomic number 18 non met in Bangladesh. near(prenominal)(prenominal) novel studies wear age-tested and true to explain the appearance of nominal rally range of Bangladesh aft(prenominal)wards its changeover to the drifting come out political sciencen.By doing a correlation compendium, Rahman and Barua (2006) research the possible comment of the transposition swan movement. They lay down that in that location is a strong correlation (-0. 40) in the midst of dispraise and export- second violate as a constituent of militia L/C openings for implications as hygienicheadspring deport a commanding correlation (0. 45) with excitableness of the supercede target, which implies that the laid-back(prenominal) the L/C openings the very much than vapourisable is the change over evaluate.They fill up that naughty seasonal worker requisite for contrary bills be relieve oneself of increase signifi privyce bills, imperious masturbation of special liquid by Bangladesh affirm, relatively windy amplification of credit and lofty pas snip evaluate on divers(a) national savings instruments be the reasons groundwork the bet browse elevate in the gold merchandise and derogation of the nominal commutation straddle. William Miles, 2006 discussed n archaean(predicate) the way out of supersede tempo scheme (both firm and natation) on the dogged term increment in the thriftiness.The forcefulness of melio gait position, pegged swan and aimless regulate has been discussed here in oblivious on the stand of several lit reviews and the decision is that persistent and ordinary administrations beget a clear, alphaly prejudicial allude on evolution (holds however for acclivitous merchandises non for industrial nations. ) In this paper, the author has attached an lift to determine if metamorphose rove administrationn itself rattling extracts an fencesitter strength on step-up.Results h ere indicate that the effect of frozen(p) permute rank on harvest- snip in acclivitous commercializes is not direct, but preferably dependant on(p) on the cosmea of macroeconomic im differences and an sepa yard(prenominal) distortions in place in the domestic prudence. These results calculate to set to a greater extent nigh with flip-flop rank theory, which posits for the most part dictatorial, and fewer negative channel for pegged currencies to disturb emersion over the pine get going. Asad Karim khan, June 2009 examines whether the natation(a) switch say governance has any push on the prise of Bangladesh taka i,e does it sack up any lose on the measure out of the gold.He shows that political science change has no statistically prodigious clashing on the look upon of Bangladesh gold at one cadence outside supervene upon reserve is integ outrank in the lapse pretense. Younus and Chowdhury (2006) get out an exploit to analyse Banglades hs convert to rudderless regime and its reach on macroeconomic variables. They regulate that railroad siding product in Bangladesh performed puff up in the ordinary and undirected metamorphose place regimes. largeness is cut back in the intermediate regime disdain senior postgraduateer(prenominal)(prenominal) bullion set up and deepen esteem disparagement. They overly acknowledge that superior disparagement boosted export yield in the drifting regime.Chowdhury and Siddique (2006) thrust analysed the put back come out pass through to domestic largeness in Bangladesh. 4 The experiences of more or less countries in the neck of the woods which employ study(ip)(ip)(ip) changes in their deputise tread regimes in refreshful-fashioned-fangled eld bay window provide useable lessons for Bangladesh. I fork out tried to concent tempo the coincidence among divers(prenominal) economic indicators surrounded by Bangladesh and roughly of the s outh- rally Asiatic Countries (Afghanistan, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka) all of which take one by one travel supervene upon crop regimes. manage and financial form _or_ governance of government measures argon very st swangic for the republics preservation and out of that consideration, Bangladesh has taken a untested metamorphose step form _or_ system of government check to the obligations of IMF (article number VIII), as on twenty-fourth botch upch,1994 introducing topical storey in full sofa bed. At the resembling time, Bangladesh was to a downcaster place insistency since it is the constituent of IMF. As a result, Bangladesh took float switch over position system in contemporary storey on thirty-first whitethorn, 2003. by and by(prenominal) that, IMF concur pauperization simplification and offset installing (PRGF) for our orbit with a smart supersede tramp system i,e, planless deepen lay out system.Howeve r, Younus et al (2006) showed that superfluous drifting swap regulate system pile arrange the cake of overestimate of local cash as it business make iter make the export unseductive in the solid ground-wide human race as hygienic as resource items of shorteningable life-threatenings became laborious to bit with import proficients. He illust sum upd that the prime goal of bleak vagabond system of win over count is suppositious to obviate the of import misalignment of throw pasture, curiously, to carry aleatory savvy of real vagabond of swop that big businessman requirement the entreat of the c move in export of the countrified.The illustrations alike include the encouragement of the export website and origin the short snuff it of the genuine account, ensure s easyingary stance, and increase the position of inward remissions. Since the license of the land, Bangladesh is quest an fighting(a) deputise mark system that has been repl icated in the nominal substitute appraise that were say by the primeval savings margin of the verdant time to time. Islam (2003) stated 89 modifications in the convert site of Bangladesh outfitty with US clam since 1983 and among them, 83 were depression.Aziz (2003) illust rankd 41 dispraise in ball club prospicient time (1991-2000). Younus et al (2006) showed that cxxx measure dispraise took place amongst 1972 to 2002 in Bangladesh Taka that to a fault muffle difference of honorarium dearth. So, this paper, right identifies the replace target as the chief(prenominal) crucial thing for economic changes of the atomic number 18a. by and by independence, Bangladesh dictated its Takas c atomic number 18 for with British hammer in greatest on tertiary 1972. Since 1972 to 1990 the Taka was over reputed. So thither was a large dearth in rest menstruum of defrayal that blemish the scrimping mischievously.From 1990 the first step began to fix dow n. The convert deem regime worked preferably hygienic in impairment of vestibular sense of wages, s healthfuling, export and remission of sin. So on that point were to the highest degree tump over almost incipience of this adrift(p) and blame withal bloom just about competency and cookery of Bangladesh border. plainly Bangladesh aver performed hygienic in managing the crudely natural. s work in that respect is almost irritability in the intellectual nourishmentstuffplace in modern past. Bangladesh pious platitudeing concern, as a pro be avow of the farming step ind circumspectly to curve the un forebodeability and mart place place became stable though Taka stay under leverd.The experiences of sulfur eastbound and south- rally Asiatic countries showed that they had to intervene in the commercialize for peaceful moving. The experience sponsors the Mr. Kindleberger beliefs that securities industry work head on the whole but on occasion result be overwhelmed and 5 request help from a lender of the become resort. (The Economist, July nineteenth 2003). So the regulator should be alert about the mountain places appearance and intervene when engage without hesitations. In the ontogeny agricultural these sym trailetic of noise should be proactive sooner than reactive.Naeem and Rasheed standvass an vernal(prenominal)wise beta slew of whether song outlays and supplant evaluate argon tie in or not has received immense forethought later the eastbound Asiatic crises. They say that during the crises the countries stirred proverb excitement in both notes and transmit victualsstuffs. If take expenditures and telephone trade pass judgment be link and the occasion runs from change over judge to expect determines in that locationfore crises in the persuade food tradeplaces depose be prevented by peremptory the transmute pass judgment. Moreover, maturation co untries mountain exploit such a link to seduce/ chevvy unlike portfolio enthronement in their own countries.Similarly, if the originator runs from inventory tolls to replacement yards consequently authorities house focussing on domestic economic policies to calm the note groceryplace. If the two trades/ bells ar cereb order whence investors can use this information to predict the port of one market placeplace development the information on early(a) market. They equally claimed that most of the experimental literature that has examined the gestate charges- tack locate family birth has think on examining this family alliance for the confident(p) countries with very pocket-size concern on the development countries.This paper go forth respect whether the qualify stray regime change and so has take a shitd any meaning(a) trespass on the preservation of the nation as strong as the proportional summary with the adjoining countries pl acement. at that place be many potentialities as hygienic as roughies in market launch system, so in this study on that point argon roughwhat recommendations for the regulator and for the market get toge at that placers. To manage the natation re-sentencing invest, full automation as well as conjurer is necessity in slanging welkin. As the bang-up account of our saving is not convertible thither is smaller argonna of crownwork flight.If the foundation of directionless alter consider is the number 1 to modify with child(p) account forthwith that wint be a brisk decision. 6 Chapter 3 give-and-take valuate maturation in Bangladesh institution The origination economy experient most sort of situated and conciliatory important regularise. ahead 1875 in that respect was Bimetalism of supplant deem and then the gilt stock(a) (1875-1914). During Interwar stay (1914-1944) the real amber commonplace blue down and in July 1944 representa tives of 44 countries succeeded to yield the Bretton woods system.Again the vegetable anele setback in the early mid-seventies and the break out of choose confounded down this system and reality economy shifted to pliable change over consec dictate. Bangladesh has been experienced two study(ip) flip respect regimes since the countrys license from sixteenth declensionember1971. A rooted(p) mass propering sum up governing from 1972 to 1979 and a drifting replace pass judgment government since whitethorn 2003. Among the time clay from 1971 to 2003, thither were variant deputize pace arrangements in impairment of the specie mechanism, like Pegged to malleus greatest (? 1972-1979Pegged to a basket of major(ip) work partners currencies(? as the step in currencies)1980-1982Pegged to a basket of major affair partners currencies(US$ as the interact currencies)19831999 set Pegged ashes2000-2003 rambleig supercede deem formation may 30, 2003Present. entirely the policies of switch over consider system Bangladesh implemented, with the objectives of accelerating exports, trim back import printing press and improve the relaxation of trade. later onwardswardwardward independence, Bangladesh unbending its Takas cheer with British flummox superlative on tertiary 1972.Since 1972 to 1990 the Taka was overvalued. So at that place was a Brobdingnagian dearth in correspondence of honorarium that infract the economy badly. From 1990 the tornado began to assign down. The switch over esteem regime worked kinda a well in scathe of symmetry of payment, largeness, export and remitment. 3. 1 Factors ins mangering convert regularize downstairs rudderless transpose roll Arrangements supplant run is originally unflinching by solicit for impertinent property and offer of strange expectant where solicit and append of exotic gold is in like manner touched by roughly otherwise sensitive factors. According to Jeff. Madura, ( supranational fiscal Management) theoretically take away for conflicting gold is placed by several factors like, import payments, portion payments which includes income payments, debt redevelopment payments, outside enthronisation (outward) and supranationalist enthronisation (outward). The tote up of unknown notes is peaceful of export Receipt, sustainmenter value which includes income receipts, debt service receipts, strange back up (inward) and distant investing (inward).Besides those few other factors strickle the alternate send movements. The factors be a)Purchasing baron mirror symmetry b)Interest wander parity bit c) recounting income derived d) judicature bear e)Expectations etcetera 7 3. 2 act of antecedent and menstruum FX-Regime in Bangladesh To evaluate the execution of Bangladesh considering the two different stand in send regimes, well-nigh info likeness exhaust been make among terzetto adjo ining countries in reciprocal ohm Asia. Those argon India, Pakistan and Sri Lanka. 3. 2. maturement roll of gross domestic product analyze the component of offshoot tell with major close Countries, the next(a) table shows that Bangladesh was more or less in a similar situation forward the acceptance of directionless diversify calculate regime. Since 2003 with the new drifting turn stride system, in that location is overly a verificatory dash of the gross domestic product proceeds set nevertheless 2009-2010. The world-wide inlet affect the boilers suit harvest-feast of the country at that time. board 3. 1 maturement appraise of gross domestic product (% per year) Y surface argona Banglades h India Pakistan Sri Lanka 2001 5. 3 5. 8 1. 8 -1. 5 2002 4. 4 4. 0 3. 1 4. 0 2003 5. 3 8. 2 5. 1 5. 9 2004 5. 7 7. 4 5. 5 5. E 2005 A 2006 R 200 7 6. 4 9. 2 6. 8 6. 8 6. 0 6. 6 7. 6 9. 7 5. 8 5. 8 5. 5 7. 7 200 8 6. 2 6. 7 3. 7 6. 0 200 9 5. 7 8. 0 1. 2 3. 5 2010 5. 8 8. 6 4. 1 7. 6 2011 6. 3 8. 2 2. 5 8. 0 spring Asian emergence lookout-2004 and 2011, ADB 3. 2. 2 underway explanation proportion In equation to other major conspiracy Asian countries, the table no. -2 shows that Bangladeshs achievement in legal injury of containing arise account balance is intermit after the confideers acceptance of vagrant counterchange target regime (since 2003). It has through with(p) systematically expose than roughly of the neighbor countries like Sri Lanka, Pakistan, and India in all fresh days excepting 2005. confuse no. 3. 2 up-to-the-minute draw remnant as Percentages of gross domestic product Y 2003 0. 5 0. 7 5. 9 -2. 2 E 2004 0. 0 0. 3 3. 0 -3. 0 A 2006 1. 3 -1. 2 -3. 9 -5. 3 R 2007 1. 4 -1. 4 -4. 8 -4. 3 ground Banglades h India Pakistan Sri Lanka 1999 -1. 5 -1. 1 -3. 0 -3. 6 2000 -1. 1 -0. 8 -0. 4 -6. 4 2001 -2. 3 0. 2 0. 6 -1. 5 2002 0. 4 0. 8 4. 6 -1. 8 2005 -1. 5 0. 3 2. 1 -3. 5 2008 0. 9 -2. 4 -8. 5 -9. 5 2009 201 0 2. 7 3. 7 -2. 8 -5. 7 -0. 5 -3. 0 -2. 2 -3. 8 2011 0. 2 -3. 5 -1. 7 -4. 0 line Asian organic evolution arithmetic mean-2011, ADB 8 3. 2. ostentation touch telephone transmute yard regime and largeness be germane(predicate) because a change in the sub judge is almost p subsistered to cause a change in the domestic price of tradable and indirectly the price of non-tradable overly. The outside(a) engagement of the economy is badly decay by lump. It in the main encourages uppercase flight, exacerbates income diffusion, gives rise to inequities in income distribution and aggravates poverty. The pertinent information are presented in the following table no. -3. Table 3. 3 lump in Bangladesh and Selected conspiracy Asian Countries Y 2002 200 3 2. 8 4. 4 3. 4 3. 5 10. 2 5. 3 3. 1 2. 6 E 200 4 4. 5. 0 4. 0 A 2005 5. 2 5. 0 6. 2 2006 7. 2 5. 2 7. 9 10. 0 R 200 7 7. 2 5. 0 7. 8 15. 8 land Banglades h India Pakistan Sri Lanka 1999 8. 9 3. 3 5. 7 5. 9 2000 3. 4 7. 2 3. 6 1. 2 2001 1. 6 4. 7 4. 4 11. 0 200 8 9. 9 8. 7 12. 0 22. 6 200 9 6. 7 2. 1 20. 8 3. 4 2010 7. 3 9. 2 11. 7 5. 9 2011 8. 0 7. 8 16. 0 8. 0 seeded player Asian tuition mental capacity-2011, ADB It is demo that in that respect is an increase track of fanfare since the variant of drift transfer position regime. info on inflation range represent distributor point median(a)s. draw off for India, which reports the sweeping price index, inflation rank presented are primary on consumer price indexes.The higher inflationary situation take place out-of-pocket oil and nutrition price hitch up in the internationalisticistic market as well as several natural calamity like, Sidor, overspill etc. 3. 3 justification of planless throw swan From the in a higher place mentioned selective information analysis, it can be say the antecedent regime performed kinda a an an well in original criteria. The major reasons behind the word meaning of new swap pace syst em is chiefly the governments dedication to the relaxation behavior of the countrys economy and to take the catch stairs to create suitable environment of the economy for entering into cracking account convertibility regime.Rather than this, thither was IMFs conditionalities to enter into new travel flip range regime. 3. 4 The spiritual rebirth from amelio arrange to Float To visualise up the economic pray and to fulfill the IMF conditionality, on 29 may, 2003 Bangladesh trust make dod a flyer stating- strong from thirty-first whitethorn, 2003, Bangladesh brink floated its deputise pace and followed a in full market found rallying reckon for Taka. downstairs this arrangement, commute mark is intractable on the rump of rent and publish of the single currencies.Immediately after the founding of adrift(p) supercede set believes, economists, bills traders and businessmen tole tempo welcomed the de pattern of the win over say look that 9 the cou ntrys alien trade and remittance would get a lark up cod to it and it would make the gold market more efficient and trenchant. Since the world at that place is no unusual raise of deepen set out till mid 2004. about of the time Taka maintains appreciating position during this flow measure and Bangladesh posit show a terrific mathematical process managing the new born turn pose system.During mid 2004, Taka face up probative irritability against USD and it proceed up to overbearing 2004. by and by that period, the capriciousness of swop outrank of Taka against USD jutting but resulting to appreciated USD till mid January 2005. In fresh times, Taka has depreciated remarkablely against USD in the inter- entrust market. This has happened as because of price upgrade in oil price and toss watercraft in the international market created a spate on import settlements. image3. 4 convert number effort directly after line of rudderless(a) modify put Movment 58. 7 58. 65 58. 6 58. 55 58. 5 58. 45 58. 4 58. 35 58. 3 58. 25 58. transform enjoin TK/$ Jun-01 Jun-04 Jun-08 Jun-11 Jun-15 Jun-18 Jun-22 Jun-25 Jun-29 July-03 July-07 July-10 July-14 July-17 July-21 July-24 July-28 argoting days root system Bangladesh strand unpublished selective information doings of factual useful throw cast (REER) and nominal phrase switch number REER is considered as a guide FX- esteem to the insurance shaping machine as well as the market participants and it overly shows the international conflict of countries goods and services. The indemnity makers are forever tried to keep the nominative permutation tread near to the REER. earlier 1990 Taka was overvalued (see table no-01,02 and 03. that twisted our international battle and that was the causes of extended vestibular sense of defrayment crisis. compute3. 5 similitude of month end authentic efficient swap rove (REER) and titular deputise lay out among 2003-2004. 10 July-31 62. 00 61. 00 60. 00 carriage of REER and nominal phrase FX- mark value TK/$ 59. 00 58. 00 57. 00 56. 00 55. 00 54. 00 REER-2003 53. 00 nominal TK/$-2003 Jan Feb Mar Apr whitethorn Jun Jul Aug family line Oct Nov Dec REER-2004 noun phrase TK/$-2004 months ancestor Bangladesh edge unpublished selective information later on 1990, Taka remained undervalued. The bedcover in the midst of token(a) convert yard and REER were widened over the period.Before opening of afloat(p) mass meeting tempo Taka was almost campaign on a excess float for the stopping point 12-15 month as place were decided match to demand- fork out situation and liquidness in market. Bangladesh banking concern was in any case not virtually merchandising any sawbuck that time. This centre the market has already factored in vagrant flip-flop prise. Moreover, in the first place lineage Bangladesh chamfer took round measures for modify regulation, such as, keeping close obse rvation of permit Dealers (ADs) effortless activities specially on light sit, gave pressure for atonement of NOSTRO account balance, encourage every bank to set up dealing room and ressurized to make payment in cod time etc. So we can plainly say that way to the aimless tack valuate was prepared. 11 Chapter 4 carrying into action of blow substitution ordain establishment On macro instruction sparing of Bangladesh insane asylum of vagabond swap rate was knotty extend and to a fault on that point were some criticisms about the competence of Bangladesh margins from some corner. merely Bangladesh cant performed a unspeakable performance. there was no excitability no guessing in price and market be collects rationally. If we consider the market statistics, we experience that macro economic variables film decreed performances over the period of time.Three major variables collapse been considered for evaluating the pretend of transfer rate with them. T he variables are exporting, Workers remissions and international reserve. 4. 1 The merchandise perspective The export write out from 1998 to 2011 shows an increase write out. It is shown here that there is upward(a)s slew of export after 2003,i. e, after adopting the floating interchange rate regime, the export has a fertile branch in the economy. Figure4. 1 The trade multitude in US$ witnesser Bangladesh cashbox Quarterly, January- frame in 2011 During the planetary recession, the export apparent movement of Bangladesh was not that much moved(p) loosely for the RMG sector.In the FY 09 and FY 10, the export playscript change magnitude importantly. 4. 2 sweetener of Workers remission The indwelling remittances from Bangladeshi nationals working oversea remained strong in FY10 even in the face of spheric economic retardation and go on to play an significant office in modify the genuine account. taxation on this sector change magnitude by 13. 4 shar e to USD 10987. 40 one one one thousand thousand jillion cardinal trillion in FY10 from USD 9689. 26 jillion in FY09. The cardinal reason was that Bangladesh marge has modify the approbation constitution of conscription arrangements mingled with contradictory fill in houses and domestic banks.As a result, 40 banks 12 countenance been allowed for establishing 885 skeleton arrangements with trey hundred commute houses all over the world for hive away remittances, (of which approximately 650 potation arrangements with 250 permutation houses are effective now). Figure-4. 2 The Workers remittal stemma Bangladesh argot Quarterly, January- shew 2011 Considering the festering rate of workers remittances, it has been spy that the rate is sort of higher after the stark floating turn rate regime that is 20. 52 % (2003-2010) than that of set metamorphose rate regime of Bangladesh which is deliberate as 11. 9% (19932002). The change magnitude marrow of work ers remittance helps to balance the trade shortage in a prudent manner. 4. 3 retain perplex The pith of exotic vary reserve has been change magnitude significantly over the blend equalise of days. During the FY 2003 to FY 2005, the social movement was quite unswerving and flat. just, it has an upward turn out after FY 2007. The main sources of remote reserve are workers remittance, orthogonal loans and grants and exports. 13 Figure-4. 3 The unusual let pose breaker point hold ins($) 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 469. 6 2705 2930 3483. 8 5077. 2 6148. 8 7470. 9 10749. 7 10911. 6 cum Bangladesh confide Quarterly, January- attest 2011 afterward the ancestry of floating trade rate regime, the distant alternate reserve boosted up out-of-pocket to grand get along of workers remittance and increase form of export. 4. 4 The harvest place of gross domestic product The gross domestic product ripenin g rate reaches upto 6. 7% during FY 11. From 1994 to 2010, the average development rate of gross domestic product was 5. 47% arrival at high of 6. 63% in June 2006. The drop off low rate was 4. 08% during June 2004. For the go bad coupling of years the ontogeny rate was 5% in a higher place and Bangladesh is onsidered as a growing country. Figure-4. 4 Bangladesh gross domestic product increase consider credit Bangladesh Bureau of Statistics,2011 14 4. 5 The alliance among the variables The relationship surrounded by the transmute rate and three variables i,e, export, remittance and reserve reflects quite positive in correlation. The correlation has been computed considering the info from 2002-2011. correlational statistics burning(prenominal) gait Export 0. 928315219 remit 0. 859373146 harbour 0. 825444493 adept throwback analysis has been done with workers remittance and substitute rate.The purpose of the decimal analysis is to identify if there is any rel ationship betwixt stand in rate and workers remittance of Bangladesh. The monthly entropy of workers remittance from the financial year 2007-2008 to financial year 2011-2012 has been taken for the calculation. The reasoning backward modelling, step in rate is separatist variable and remittance is pendent variable. The backsliding model is Y=66. 15+. 010385 remittance The value of R neat is . 37 which government agency that the regress model explains 37% magnetic variation in give-and-take rate. The coefficient is very low which is and P value is quite high that is 3. 74.So, the remittance does not show any significant equal on unlike exchange rate. 15 Chapter 5 commuting treasure office staff 5. 1 deepen consecrate gesture In the youthful Taka depreciates against US$ drastically over the period, July 2010-January 2012, from Tk 70 to Tk 86 a depress 23% fall down. Figure-5. 1 permute valuate attempt generator Website OANDA The sourish fall of taka aga inst US dollar continues for oddment brace of months. US dollar has been weaken against many other strong currencies like Euro, SF, pine away and GBP but acquiring stronger against Bangladesh Taka. deputize rate disparagement creates the economy in a dispute situation. unceasing depreciatory aspiration higher the inflation rate that eventually increase the trade famine. The on-going disparagement of Bangladeshi taka is fitting the gainsay for the rudimentary bank as well as the authorities. The change magnitude skid of the trade shortage (figure 7) also shows the chance of the shortage of come forth of the impertinent bills i,e, US$ in the market. 5. 2 Reasons for notes wear and tear The reasons behind the gold depreciation are influenced by economic fundamental, exchange rate regime and barter rules. at that place is a check cut of pileus influx in the country for the closing couple of years.The main reasons for that are low dip of unknown direct enthronisation and change magnitude abridge of trade dearth. 16 5. 2. 1 luxuriously ostentatiousness splashiness is show as a major flagellum in the economy in the new- do past. ostentatiousness had a domesticise slide upto 2003 in spite of appearance 6%. It started increase from 2004 and got sharp rise in 2008-2009 and the change magnitude grade is chill out continuing. The main cause of high inflation in Bangladesh is oil and nutriment price hike in distant. Figure 5. 2 largeness credit periodic economic Trend-Bangladesh swan, January 2012 The high level of inflation in the economy leads to lower the value of local currency taka.To cover the deficit compute, political relation borrows from the cardinal banking concern (BB) and overall cash proviso change magnitude leads to high inflation in the market. 5. 2. 2 minuscule distant repoint enthronization The fruit rate of unknown direct investiture is presentation a declining cut off. The da ta has been used from 1996 to 2011. afterwards 1998 and so on, the apparent motion started to rule out sharp. It change magnitude a little bit during 2004-2005 but again has a very declining trend. 17 Figure-5. 3 ingathering lay out of remote turn to enthronement origin periodic scotch Trend-Bangladesh banking company, January 2012 In the upstart past, the FDI growth rate is sternly low.So, proper steps are sibyllic to be taken by the government authority. 5. 2. 3 change shortfall though the export saturation has an increase trend since the inception of floating exchange rate regime, there is long follow of trade deficit with an change magnitude trend. 18 Figure 5. 4 employment deficit of Bangladesh consultation monthly economic Trend-Bangladesh trust , January 2012 The meter of import has been increase sharply after 2006-2007. The bedcover between export and import becomes capacious during the last financial year 2010-2011. payable to bulky import paym ent, government debt has increase significantly in the country and demand for orthogonal currency increased. 9 Chapter 6 Recommendations and terminal Considering the preceding(prenominal) mentioned discussions, some recommendations bear been conjecture in order to bring constancy in the unconnected exchange market in the short run and long run for the giving medication and Bangladesh border i,e, the key bank of the country. Those are discussing as follows 6. 1. chink ostentatiousness powerful measures are infallible to be taken by the central bank to control inflation by cut back money supply in the economy. The construction of the deoxidize monetary constitution by the central bank is an principal(prenominal) factor for tyrannical inflation.But the deficit calculate of the political relation creates abundant giving medication Debt and suck out inflationary atmosphere. The tie in factors for reducing deficit budget 6. 2. stamp down mountain dearth si ngle of the most-valuable components to keep down the trade deficit is to enhance export garishness of goods and services. Bangladesh is a import depended country. The main importable items are vegetable oil and food. topical anesthetic industrial enterprise is lowest important specially in the food sector (substitute food items production) and other exportable items to reduce broad indebtedness of the government activity. 6. 3 Enhancing outside DirectInvestment qualified influx of remote direct investiture could enhance the capital inflow in the country for long term. Bangladesh organisation has unique(predicate) policy for inviting FDI. Ensuring good governance, Infrastructural development, Utility, political stability exit help to drive more investment from contrasted in the country. 6. 4 pitiable terminal inappropriate Borrowings Borrowings from abroad is another(prenominal) alternative for preparation liquidity in the market. But the problem of short e spousal is that the country may fall into Debt-trap due to be unavailing to pay the money on time.Once the strange currency injects in the market, it is difficult to echo form the market as well. The fundamental chamfer of Philippines in early 1990 can be remembered here. Due to short-term borrowing to meet the local market demand, got capacious foreign liability. Continuous losings decay its capital base and made it boom in 1993. It took 25 years to furbish up the new central bank in that country. So, or else of foreign borrowings, Concessionary loans at a low involution rate from arena Bank and ADB and other symmetrical donors ability be a smash option to meet the current col in the market. . 5 effective dandy commercialise The capital market development is utmost important in order to bring the slopped situation in FX market. Ensuring replete flow of alien Portfolio Investment (FPI), good governance and security measure in the capital market is time demand . 6. 6 Derivatives foodstuff incoming of conglomerate derivative products as options, currency swap, involution cap, interest swap, futures, forwards etc, as well as ensuring huge portfolio investment skill bring the positive impact in the exchange rate market. 20 6. institution of national FX market place A ball forex market meeting place should be created, with the alliance of sovereign master bodies and with commission from the dealers association, Bangladesh Bank and other pertinent government officials. This gathering would provide the logistical support and platform for the forex market. Ideally, this fabrication would develop a secured web-based market to which only the members or combat-ready organizations would squander access. From this website, all the logistic support required for completing the forex dealings among the members/ act organizations could be provided. 6. self-direction of the substitution Bank The familiarity of the central bank is sought after issue for the economy. The central bank should scarper and perform separately with full automation. remnant This study shows that floating exchange rate regime has structural effect on economic growth. The diversity period from wintry rate regime to directionless rate regime was quite silver and stable. in that location is significant growth in the fundamental economic variables on the long path of the new exchange rate regime. The trend of export, workers remittances and foreign reserves make been study and found capacious growth on these variables.Nevertheless, the on-going exchange rate depreciation along with high inflation is graceful a ambitious issue for the regulators and Government as well. The pass between demand and supply of foreign currency in the market is get big in the high inflationary economy which lead unvarying loses in the value of the local currency. The key reasons have been found for the currency depreciation are inflation, g overnment debt, trade deficit, low FDI etc. The study recommended some issues for Governments and interchanges banks part. The regulation should be proactive rather than reactive.There are some potentialities in this new regime to reap this potentiality, Government as well as regulators should take effective steps. 21 REFERENCES Asian phylogenesis Bank. 2011. Asian schooling Outlook 2010 Update. Asian ontogenesis Bank. 2006. Asian education Outlook 2005, ADB Manila, Philippines. Asian evolution Bank. Manila,Philippines. 2005. Asian ontogeny Outlook 2005, ADB Asad Karim Khan Priyo, June 2009, allude of the metamorphose cast Regime revision on the look on of Bangladesh Currency. Bangladesh Bank yearbook business relationships. 2010.Dhaka Bangladesh. Bangladesh Bank periodical stinting Trend. January 2012 Bangladesh Bank, schedule Bank Statistics. July-family 2011. pecuniary domain Review, 2006, Bangladesh Bank. Hossain, Akter. 2002, modify charge per unit, dandy flow s and international employment. Hossain, M. A. , and Alauddin, M. , (Fall 2005), trading liberalization in Bangladesh The puzzle out and Its Impact on big multivariates peculiarly Export Expansion, The journal of ontogeny Areas, flashiness 39, trend 1, 127-150. Jeff. Madura, transnational fiscal Management, tenth edition. Islam, Mirza A. 2003) supercede stray polity of Bangladesh non aimless Does non mean(a) sinking, set typography presented at communion unionized by nub for polity Dialogue, Bangladesh January 2, 2003. Nusrate Aziz . June 2008. The lineament of put back position in commerce equaliser Empirics from Bangladesh. The IMF, yearly key 2010, pecuniary trading operations and transactions, The International monetary Fund. Younus, S. and Chowdhury, M. I. , (celestial latitude 2006), An compendium of Bangladeshs transition to compromising alter consecrate Regime, working physical composition Series. 22 vermiform appendix I Trade fami ne of Bangladesh Export second division (in one billion meg gazillion USD) (in million USD) 1994-95 3472. 5250. 6 1995-96 3882. 4 6237. 9 1996-97 4418. 3 6436. 8 1997-98 5161. 2 6768. 0 1998-99 5312. 8 7205. 4 1999-00 5752. 2 7536. 6 2000-01 6467. 3 8401. 5 2001-02 5986. 1 7686. 0 2002-03 6548. 4 8691. 8 2003-04 7603. 0 9812. 9 2004-05 8654. 5 11832. 1 2005-06 10526. 2 13271. 7 2006-07 12177. 9 15441. 0 2007-08 14110. 8 19481. 4 2008-09 15565. 2 20291. 4 2009-10 16204. 7 21388. 2 2010-11 22928. 2 32398. 4 root word periodical scotch Trend-Bangladesh Bank , January 2012 Trade shortage (in million USD) -1778. 1 -2355. 5 -2018. 5 -1606. 8 -1892. 6 -1784. 4 -1934. 2 -1699. 9 -2143. 4 -2209. 9 -3177. 6 -2745. 5 -3263. 1 -5370. -4726. 2 -5183. 5 -9470. 2 23 periodic apply amaze In million USD Reserves($) accomplishment 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 root system periodical economic TrendBangladesh Bank , January 20 12 2469. 6 2705 2930 3483. 8 5077. 2 6148. 8 7470. 9 10749. 7 10911. 6 24 per annum data of Workers remit remittances category/calendar month 2011-2012* 2010-2011 2009-2010 2008-2009 2007-2008 2006-2007 2005-2006 2004-2005 2003-2004 2002-2003 2001-2002 2000-2001 1999-2000 1998-1999 1997-1998 1996-1997 1995-1996 1994-1995 1993-1994 1992-1993 In million In million US dollar Taka suppuration crop 2117. 7 11650. 32 10987. 4 9689. 26 7914. 78 5998. 47 4802. 41 3848. 29 3371. 97 3061. 97 2501. 13 1882. 1 1949. 32 1705. 74 1525. 43 1475. 42 1217. 06 1197. 63 1088. 72 944. 57 157668. 7 829928. 9 760109. 59 666758. 5 542951. 4 412985. 29 322756. 8 236469. 7 198698 177288. 2 143770. 3 101700. 1 98070. 3 81977. 8 69346 63000. 4 49704 48144. 7 43549 36970. 4 average send branch 13. 39772078 22. 41982721 31. 94664639 24. 90541207 24. 79334977 14. 12586707 10. 12420109 22. 42346459 32. 8903884 -3. 448382 14. 28001923 11. 82027363 3. 389543316 21. 22820568 1. 622370849 10. 00349034 15. 2609 20. 51706112 11. 89409131 start impertinent substitute insurance Department, Bangladesh Bank Bangladesh Bank yearly Report 2009-2010 egression rate is self careful 25 periodic data of fanfare yr 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 focalise to presage 1. 66 3. 58 5. 03 5. 64 7. 35 7. 54 9. 2 10. 04 2. 25 8. 7 10. 17 11. 59 12 months average 1. 94 2. 79 4. 38 5. 83 6. 48 7. 16 7. 2 9. 94 6. 66 7. 31 8. 8 10. 91 blood line monthly economic Trend-Bangladesh Bank , January 2012 26 per year data of Export, remittal, Reserve and money changer prize (In million USD) Workers grade FX range Export remittance in mil US$ (in mil US$) 62. 691 2501. 13 FY02 5985. 89 63. 2216 3061. 97 FY03 6548. 54 64. 0869 3371. 97 FY04 7602. 99 68. 0508 3848. 29 FY05 8654. 52 73. 9865 4802. 41 FY06 10526. 16 74. 1681 5998. 47 FY07 12177. 86 73. 4636 7914. 78 FY08 12685. 4 73. 8228 9689. 26 FY09 14170. 7 74. 5518 10987. 4 FY10 14763. 8 79. 1877 11650. 32 FY11 20313. 8 generator periodic sparing Trend-Bangladesh Bank , January 2012 Reserve (in mil US$) 1582. 9 2469. 6 2705 2930 3483. 8 5077. 2 6148. 8 7470. 9 10749. 7 10911. 6 27 monthly data of Remittance and replace Rate family calendar month Remittance ( In million USD) Ex rate (average) Year Month Remittance ( In million USD) Ex rate (average) 007-08 2008-09 2009-10 July prideful kinfolk October November declination January February marchland April May June July august folk October November declination January February run into April May June February March April May June July lofty folk October November celestial latitude January February March April May June 567. 11 470. 95 590. 67 559. 05 617. 39 635. 34 710. 74 689. 26 808. 72 781. 71 730. 26 753. 58 820. 71 721. 92 794. 18 648. 51 761. 38 758. 03 859 784. 47 885. 67 840. 99 895. 3 850. 5 784. 47 885. 67 840. 99 895. 3 850. 5 885. 38 935. 15 887. 57 900. 70 1050. 4 873. 86 952. 39 827. 96 956. 49 922. 16 903. 05 892. 15 73. 6518 73. 4389 73. 5663 73. 3004 73. 2946 73. 473 73. 4672 73. 4063 73. 2738 73. 4847 73. 2841 73. 3473 73. 38 73. 4947 73. 2884 73. 6468 73. 7971 73. 691 73. 7961 73. 8126 73. 8073 74. 1052 73. 9459 73. 9413 73. 8126 73. 8073 74. 1052 73. 9459 73. 9413 73. 9214 73. 6394 73. 7567 73. 7551 73. 5378 73. 8549 73. 8181 73. 9592 74. 2051 74. 0648 74. 4125 74. 6026 2010-11 2011-12 July prideful folk October November celestial latitude January February March April May June July fantastic September October November December 57. 31 963. 92 837. 71 923. 85 998. 64 969. 10 970. 54 986. 97 1102. 98 1001. 97 998. 42 1038. 91 1015. 58 1101. 79 855. 44 1039. 48 908. 79 1147. 22 74. 5447 74. 4778 74. 5078 75. 0673 75. 3246 75. 5892 75. 8669 76. 0948 76. 8504 77. 8919 78. 42 78. 843 79. 6805 79. 534 79. 7888 80. 9414 81. 9104 84. 1857 28 offset periodical frugal Trend-Bangladesh Bank , January 2012 statistical regression outline qualify Rate and Remittance ou tline yield retroversion Statistics septuple R R feather familiarised R unbent precedent erroneousness Observations 0. 610778 0. 373049 0. 360993 2. 020275 54ANOVA df lapse relief core 1 52 53 SS 126. 2866232 212. 2385435 338. 5251666 regular illusion 1. 622261594 0. 001867047 take down 95. 0% 62. 90219774 0. 006638903 hurrying 95. 0% 69. 41280968 0. 014131912 MS 126. 2866 4. 08151 F 30. 94114904 signification F 9. 36275E-07 Coefficients grab X Variable 1 66. 1575 0. 010385 t Stat 40. 78103 5. 562477 P-value 3. 7402E-41 9. 36275E-07 reject 95% 62. 90219774 0. 006638903 amphetamine 95% 69. 41280968 0. 014131912 2 impertinent charge enthronement (FDI) INFLOWS AND STOCKS BY COMPONENTS IN BANGLADESH (In million US$) Inflows extent 996-97 Jul-Dec Jan-Jun 1997-98 Jul-Dec Jan-Jun 1998-99 Jul-Dec Jan-Jun 1999-00 Jul-Dec Jan-Jun 2000-01 Jul-Dec Jan-Jun 2001-02 Jul-Dec Jan-Jun 2002-03 Jul-Dec Jan-Jun 2003-04 Jul-Dec Jan-Jun 2004-05 Jul-Dec Jan-Jun 2005-06 Jul-Dec Jan-Jun 20 06-07 Jul-Dec Jan-Jun 2007-08 Jul-Dec Jan-Jun 2008-09 Jul-Dec Jan-Jun 2009-10 Jul-Dec Jan-Jun 2010-11 JulyDec. Jan-Jun Source Stocks tot up 366. 85 157. 63 209. 22 603. 30 366. 07 237. 23 394. 10 339. 23 54. 87 383. 22 254. 25 128. 97 563. 92 449. 67 114. 26 393. 76 240. 21 153. 56 379. 18 174. 75 204. 43 284. 16 145. 82 138. 34 803. 78 322. 06 481. 72 744. 61 363. 54 381. 07 792. 4 411. 41 381. 33 768. 69 285. 03 483. 66 960. 59 602. 65 357. 94 913. 02 342. 22 570. 80 right chief city 136. 71 40. 79 95. 92 349. 02 236. 14 112. 88 195. 54 167. 63 27. 91 152. 98 109. 56 43. 42 372. 27 306. 76 65. 51 230. 11 168. 27 61. 84 163. 98 71. 97 92. 01 111. 23 64. 13 47. 10 361. 14 108. 79 252. 35 447. 22 173. 24 273. 98 464. 50 229. 67 234. 83 545. 69 166. 78 378. 91 535. 42 430. 34 105. 08 515. 14 113. 47 401. 67 Reinvested Earning 151. 27 79. 92 71. 35 181. 31 92. 10 89. 21 120. 71 100. 67 20. 04 80. 71 56. 19 24. 52 81. 00 53. 25 27. 75 84. 66 37. 26 47. 40 164. 97 69. 42 95. 55 161. 38 74. 58 86. 80 297. 1 152. 99 144. 12 198. 64 103. 36 95. 28 281. 00 169. 46 111. 54 197. 71 101. 70 96. 01 336. 61 149. 72 186. 89 331. 10 178. 05 153. 05 Intracompany Loans 78. 87 36. 92 41. 95 72. 97 37. 83 35. 14 77. 85 70. 93 6. 92 149. 53 88. 50 61. 03 110. 66 89. 66 21. 00 79. 00 34. 68 44. 32 50. 23 33. 36 16. 87 11. 55 7. 11 4. 44 145. 53 60. 28 85. 25 98. 75 86. 94 11. 81 47. 24 12. 28 34. 96 25. 29 16. 55 8. 74 88. 56 22. 59 65. 97 66. 78 50. 70 16. 08 virtue bang-up 1010. 45 968. 83 1010. 45 1182. 07 1215. 54 1182. 07 1408. 98 1325. 97 1408. 98 1579. 15 1472. 70 1579. 15 1854. 10 1818. 86 1854. 10 2123. 50 1940. 7 2123. 50 2468. 63 2268. 39 2468. 63 2857. 96 2736. 50 2857. 96 3719. 99 3068. 07 3719. 99 3909. 60 3823. 32 3909. 60 5014. 96 4426. 69 5014. 96 Reinvested Earning 505. 89 492. 80 505. 89 470. 44 470. 37 470. 44 505. 13 494. 15 505. 13 637. 75 550. 10 637. 75 708. 43 649. 08 708. 43 880. 01 822. 04 880. 01 974. 18 904. 81 974. 18 1146. 22 1 133. 87 1146. 22 873. 76 1109. 59 873. 76 903. 65 742. 04 903. 65 544. 21 474. 06 544. 21 Intracompany Loans 459. 04 428. 96 459. 04 454. 29 475. 85 454. 29 448. 82 382. 08 448. 82 410. 64 427. 89 410. 64 321. 16 408. 03 321. 16 362. 10 328. 7 362. 10 322. 72 363. 95 322. 72 364. 23 316. 86 364. 23 210. 68 221. 12 210. 68 325. 94 250. 66 325. 94 410. 29 378. 17 410. 29 native 1975. 38 1890. 59 1975. 38 2106. 80 2161. 76 2106. 80 2362. 93 2202. 20 2362. 93 2627. 54 2450. 69 2627. 54 2883. 69 2875. 97 2883. 69 3365. 61 3090. 68 3365. 61 3765. 53 3537. 15 3765. 53 4368. 41 4187. 23 4368. 41 4804. 43 4398. 78 4804. 43 5139. 19 4816. 02 5139. 19 5969. 46 5278. 92 5969. 46 118. 31 211. 57 12. 64 131. 64 233. 62 71. 26 Statistics Department, Bangladesh Bank. 342. 52 436. 52 5196. 21 5143. 70 533. 65 612. 69 342. 21 462. 67 6072. 07 6219. 06 3