News about Bangladesh

The writer argues that Bangladesh should not deliberately weaken the taka to boost exports, but should let the exchange rate move flexibly with the market while supporting stability without fueling inflation. A weaker currency raises the taka received per dollar of exports, but the gain can shrink because imported cotton, fuel and machinery also cost more and overseas buyers may push prices down; for example, a $100 order brings Tk 8,500 at Tk 85 per dollar and Tk 12,000 at Tk 120. Competitiveness depends more on productivity, logistics and access to inputs, and the real effective exchange rate reflects relative prices better than the dollar rate. Since depreciation raises import costs and inflation, the writer says policymakers should prioritize transparent price discovery and structural reform over defending an arbitrary rate.