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Exchange rate from U.S doIIar to BangIadesh taka:
Percentage change incurs year by year:
n finance, an exchange rate (also known as the foreign-exchange rate, for-ex
rate or FX rate) between two currencies is the rate at which one currency will be
exchanged for another. t is also regarded as the value of one country's currency in
terms of another currency. Exchange rates are determined in the forelgn exchange
markeL,2 which is open to a wide range of different types of buyers and sellers where
currency trading is continuous: 24 hours a day except weekends, i.e. trading from
20: CM1 on Sunday until 22:00 GMT Friday. The spot exchange rate refers to the
current exchange rate. The forward exchange rate refers to an exchange rate that is
quoted and traded today but for delivery and payment on a specific future date.
n the retail currency exchange market, a different buying rate and selling rate will be
quoted by money dealers. Most trades are to or from the local currency. The buying rate
is the rate at which money dealers will buy foreign currency, and the selling rate is the
rate at which they will sell the currency. The quoted rates will incorporate an allowance
for a dealer's margin (or profit) in trading, or else the margin may be recovered in the
form of a "commission" or in some other way. Different rates may also be quoted for
cash (usually notes only), a documentary form (such as traveller's cheques) or
electronically (such as a credit card purchase). The higher rate on documentary
transactions is due to the additional time and cost of clearing the document, while the
cash is available for resale immediately. Some dealers on the other hand prefer
documentary transactions because of the security concerns with cash.
Each country, through varying mechanisms, manages the value of its currency. As part
of this function, it determines the exchange raLe reglme that will apply to its currency. f a
currency is free-floating, its exchange rate is allowed to vary against that of other
currencies and is determined by the market forces of supply and demand. Exchange
rates for such currencies are likely to change almost constantly as quoted on flnanclal
markeLs, mainly by banks, around the world.
A market based exchange rate will change whenever the values of either of the two
component currencies change. A currency will tend to become more valuable whenever
demand for it is greater than the available supply. t will become less valuable whenever
demand is less than available supply (this does not mean people no longer want
money, it just means they prefer holding their wealth in some other form, possibly
another currency).
ncreased demand for a currency can be due to either an increased transaction demand
for money or an increased speculative demand for money. The transaction demand is
highly correlated to a country's level of business activity, gross domestic product (GDP),
and employment levels. The more people that are unemployed, the less the public as a
whole will spend on goods and services. Central banks typically have little difficulty
adjusting the available money supply to accommodate changes in the demand for
money due to business transactions.
Speculative demand is much harder for central banks to accommodate, which they
influence by adjusting interest rates. A speculator may buy a currency if the return (that
is the interest rate) is high enough. n general, the higher a country's interest rates, the
greater will be the demand for that currency. t has been argued that such speculation
can undermine real economic growth, in particular since large currency speculators may
deliberately create downward pressure on a currency by shorting in order to force that
central bank to sell their currency to keep it stable. (When that happens, the speculator
can buy the currency back from the bank at a lower price, close out their position, and
thereby take a profit).













nterpretation of resuIts:
t can be easily explained by the following data.

Appendix:




2




2
2 22 2 2 2 2 22
AnnuaI Percentage Change in Foreign Currency VaIue from $ U.S to BangIadesh
Taka from 2000 to 2010:
Year Exchange rate in $ U.S Exchange rate in
Bangladesh taka
Annual
percentage
change
2000
200
2002
2003
2004
200
2006
2007
2008
2009
200
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
.00
43.89
46.9
7.83
7.93
9.08
64.9
68.72
68.37
68.23
68.2
69.04
0.42
0.07
0.23
0.007
0.099
0.086
0.0706
0.00
0.002
0.0043
0.0076

Questions for Group 11 from Group 6

O "Exchange rate Irom U.S dollar to Bangladesh taka"
Is that a direct Or Indirect Quotation?

O nnual percentage change is oI decreasing trend.
ould you like to share with us the supportive reasons relevant to this Or Give
your thoughts on this?

O ould you like to let us know about your calculation for acquiring percentage
change?

O ould you think the impact of economic variables on the exchange rate
determination is not that much, from the Bangladesh Perspective?

O hen will the market based exchange rate varies?