BB study suggests taka appreciation

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A central bank study has suggested appreciation of the Bangladesh taka against the greenback to help rein in soaring inflation.

"The study has found the local currency undervalued against the US dollar", said executive director of the bank Yasin Ali.

The study was carried out recently in the backdrop of falling greenback and frequent appreciation of major international currencies, including euro, Japanese yen, Chinese yuan and Indian rupee

The study has recommended appreciation of taka against the falling US dollar to stave-off the soaring inflation, said the official.

"Many countries across the globe have appreciated their currencies as a major option to cool down the inflation," he said.

A report in the London based Finacial Times published recently said euro has risen 20 per cent against the dollar and the Chinese yuan 17 per cent over the past three years.

As per the real effective exchange rate (REER) calculated by the Bangladesh Bank (BB), the value of taka vis-