Bangladesh Bank is using a crawling peg system for calculating the dollar rate prescribed by IMF.
Under this system, the exchange rate is allowed to fluctuate in the specific range against US dollar. For this Bangladeshi taka will be pegged against US dollar. The aim of this system is to control the devaluation of the Bangladeshi currency and incrementally increase exchange rate. Earlier, dollar rate was determined in the floating rate.
Currently dollar rate is TK 117 as a mid-rate.
CR×(1+AF/100)
CR=Current Rate, AF=Adjustment Frequency
Suppose Current rate is 117 taka per dollar, and the adjustment frequency is 2% per month then dollar rate calculation is:
117*(1+0.2/100) =117.234
Due to this system from now it is not possible to jump dollar rate higher.
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