The exchange rate management is one of the central issues of macroeconomic policies of Bangladesh.
There are four types of exchange rate system. These are fixed, freely floating,
managed float and pegged types. Historically, Bangladesh had been maintaining various pegged exchange rate regimes or fixed exchange rate regimes.
1. Fixed exchange rate system
2. Floating exchange rate system
On May 31,
2003, Bangladesh
switched
to floating
exchange rate
system by abandoning the adjustable
pegged system in order to discover the actual value of
foreign currencies.
There are two type of floating exchange rate system like- a.
Freely floating exchange rate system
b. Managed float
exchange rate system
3. Pegged exchange rate system
Bangladesh
had
been maintaining various pegged exchange rate regimes, such as
pegged to the British pound sterling (1972-1979), pegged to a basket of major trading partners' currencies with pound sterling as the intervening currency (1980-
1982), pegged to a basket of major trading partners' currencies with US dollar as
the
intervening currency (1983-1999), and an adjustable pegged system (2000-
2003).