Country’s nominal exchange rate depreciated by 3.70 per cent in the past fiscal year (FY18), according to the latest statistics of the central bank.
It showed that the per-unit exchange rate of the Bangladeshi taka against that of the US dollar stood at Tk 83.70 by the end of June, 2018, which was also the last day of the past fiscal year.
The nominal rate was Tk 80.60 by the end of the past fiscal year (FY17), according to the Bangladesh Bank statistics.
Nominal exchange rate is generally defined as the number of units of the domestic currency that are needed to purchase a unit of a given foreign currency. It is termed nominal, considering its numerical value of the currencies, not the purchasing powers.
The statistics also showed that Real Effective Exchange Rate (REER) index stood at 101.65 at the end of the past fiscal year against 140.32 at the end of FY17.
That means the REER of the Bangladeshi currency decreased by 27.55 per cent during the period under review. The REER is basically a trade-weighted index of a currency which is adjusted with the inflation.