A market-driven exchange rate is a major policy change that will have significant implications for the businesses in Bangladesh. While it may pose some challenges and risks for some sectors and companies, it will also bring many benefits and opportunities for others. A market-driven exchange rate will ultimately enhance the efficiency and transparency of the foreign exchange market and improve the economic performance and prospects of Bangladesh. Our report will examine the benefits and challenges of this move for different sectors and companies.

A summary of the main points of the Monetary Policy Statement (MPS) for H1'24 issued by the Bangladesh Bank (BB) on June 18, 2023. The MPS outlines the policy stance and measures of the BB in order to achieve its objectives of containing inflation, improving the current account balance, reducing exchange rate instability, protecting foreign exchange reserves and stabilizing the financial sector. The report also discusses the expected impact of the MPS on the capital market and the macroeconomic outlook of the country.