Appreciation of taka: A policy dilemma

IT is the policy of the central banks the world over to keep the real effective exchange rate (REER) of the currencies of their respective countries stable. The Bangladesh Bank, it seems, is deliberately avoiding that policy and keeping the value of taka as against the greenback well above the REER. A study conducted by the central bank, according to a report published in this daily last Monday, has found that the taka is undervalued vis-