Effect of Remittance in the Transformation of Exchange Rate in Bangladesh Economy

Abstract

The paper examines about the experience of Bangladesh with various exchange rate systems, looking at the presentation of past and current exchange rate systems with selected south Asian nations. The examination aims to how macroeconomic factors impacted the exchange rate. For these examinations, four noteworthy autonomous factors have been considered, for example, export, import, remittance and reserve, these factors effects in the floating exchange rate for assessing the relationship between exchange rate and remittance. The outcomes demonstrated that macroeconomic factors altogether impacted the exchange rate. The investigation inferred that in the floating exchange rate system Bangladesh speeding up positive effects of the macroeconomic improvement of the nation, where remittance impacts the conversion standard for national advancement. The national bank of Bangladesh and the administration may build up stimulating power over the remote trade business, to control inflation rate, to expand send out, and lessen the exchange deficiency and as remittances positively affects the conversion scale. Bangladesh should actualize progressively steady strategies for the non-resident Bangladeshi around the world.

Keywords: Macroeconomic Variables, Exchange Rates, Remittance, Floating Exchange, Bangladesh

DOI: 10.7176/EJBM/11-29-04

Publication date:October 31^st 2019