An article on Exchange rate management options for Bangladesh written by Dr. Monzur Hossain at the Financial Express
The recent devaluation spree in many countries after large devaluations of Chinese Yuan and Euro has resurrected a lively debate on exchange rate management options in Bangladesh. Though Bangladesh officially maintains a freely floating exchange rate system since 2003, the exchange rate system in Bangladesh is dubbed dirty float and it remains almost fixed for the last few years albeit at a devalued level. The US dollar, the main vehicle currency of Bangladesh's trade, was managed heavily in the last few years so that a stable nominal exchange rate can be ensured.