How Does Abrupt Economic Shock Impact Exchange Rate Movement: Empirical Evidences from Bangladesh
Journal of Finance and Accounting
Volume 4, Issue 6, November 2016, Pages: 310-320
Received: Sep. 17, 2016; Accepted: Sep. 28, 2016; Published: Oct. 19, 2016
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Authors
Kazi Rashedul Hasan, Department of Finance, American International University-Bangladesh (AIUB), Dhaka, Bangladesh
Ariful Malek, Trade Finance, National Bank Limited, Dhaka, Bangladesh
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Abstract
The primary focus of this research is to study the impact of Foreign Exchange Reserve changes on key economic indicators, namely Inflation and the Exchange Rate of Bangladesh. In addition, the article seeks to illustrate the effects of recent theft from Bangladesh Bank’s reserve on Bangladeshi economy and exchange rate movement, based on multiple hypotheses: whether or not the changes in foreign exchange reserve can solely dictate the trend of the exchange rate; whether or not the changes in foreign exchange reserve can solely dictate the trend on inflation rate; whether or not the foreign exchange reserve kept increasing because of exports and increased inward remittance; and finally, how effective was Bangladesh Bank’s policy intervention tools to keep the economy in balance.
Keywords
Foreign Exchange Reserve, Economic Shock, Inflation, Policy Intervention Tools, Exchange Rate Movement, Pearson Correlation
To cite this article
Kazi Rashedul Hasan, Ariful Malek, How Does Abrupt Economic Shock Impact Exchange Rate Movement: Empirical Evidences from Bangladesh, Journal of Finance and Accounting. Vol. 4, No. 6, 2016, pp. 310-320. doi: 10.11648/j.jfa.20160406.11
Copyright
Copyright © 2016 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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