How Does Abrupt Economic Shock Impact Exchange Rate Movement: Empirical Evidences from Bangladesh

Kazi Rashedul Hasan; Ariful Malek

doi:doi:10.11648/j.jfa.20160406.11

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How Does Abrupt Economic Shock Impact Exchange Rate Movement: Empirical Evidences from Bangladesh

Kazi Rashedul Hasan, Ariful Malek

Published in Journal of Finance and Accounting (Volume 4, Issue 6)

Received: 17 September 2016 Accepted: 28 September 2016 Published: 19 October 2016

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Abstract

The primary focus of this research is to study the impact of Foreign Exchange Reserve changes on key economic indicators, namely Inflation and the Exchange Rate of Bangladesh. In addition, the article seeks to illustrate the effects of recent theft from Bangladesh Bank’s reserve on Bangladeshi economy and exchange rate movement, based on multiple hypotheses: whether or not the changes in foreign exchange reserve can solely dictate the trend of the exchange rate; whether or not the changes in foreign exchange reserve can solely dictate the trend on inflation rate; whether or not the foreign exchange reserve kept increasing because of exports and increased inward remittance; and finally, how effective was Bangladesh Bank’s policy intervention tools to keep the economy in balance.

Published in	Journal of Finance and Accounting (Volume 4, Issue 6)
DOI	10.11648/j.jfa.20160406.11
Page(s)	310-320
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2016. Published by Science Publishing Group

Keywords

Foreign Exchange Reserve, Economic Shock, Inflation, Policy Intervention Tools, Exchange Rate Movement, Pearson Correlation

References

[1]	Afrin, S., Sarder, M. W., & Nabi, M. G. (2014). The Demand for International Reserves of Bangladesh. Dhaka: Bangladesh Bank.
[2]	Akther, M., Sarker, M. M., & Khan, M. S. (2013). Sources of Exchange Rate Fluctuations in Bangladesh. Dhaka: Bangladesh Bank.
[3]	Anonymous FEPD, B. B. (2016, August). Foreign Exchange Reserve's Impact on Bangladeshi Economy. (A. Malek, Interviewer)
[4]	Bangladesh Bank, Central Bank of Bangladesh. (n.d.). Recent Economic Data. Retrieved from Bangladesh Bank Homepage: https://www.bb.org.bd/econdata/index.php
[5]	Begum, M. N. (2014). Reserve Accumilation and Sterilized Intervention in the Foreign Exchange Market: An Empirical Analysis. Dhaka: Bangladesh Bank.
[6]	Hassan, R., Chakraborty, S., Sultana, N., & Rahman, M. M. (2016). The Impact of the Real Effective Exchange Rate on Real Export Earnings in Bangladesh. Dhaka: Bangladesh Bank.
[7]	Khan, M. S., Hossain, M. S., & Rahman, M. H. (2013). Effects of Monetary Policy on Capital Market in Bangladesh. Dhaka: Bangladesh Bank.
[8]	Nironjon Roy, C. C. (2016, March 13). Money hacked from Federal Reserve: BB should move carefully. Retrieved from The Financial Express: http://www.thefinancialexpress-bd.com/2016/03/13/21019
[9]	Sarker, M. N., Hasan, M. S., & Rahaman, A. (2016). Real or Nominal Shock: What Drives the Exchange Rate Movement in Bangladesh? Dhaka: Bangladesh Bank.
[10]	Younus, D. S. (2010). Link between the Financial Inclusion and Economic Growth: Unconventional Monetary Policy in Bangladesh. Dhaka: Bangladesh Bank.
[11]	Younus, D. S. (2014). Some Facts and Determinants of CPI Inflation in Bangladesh: Evidence from Post-Floating Exchange Rate Regime. Dhaka: Bangladesh Bank.
[12]	Younus, D. S., & Chowdhury, M. M. (2014). Real Exchange Rate and Its Impact on Export, Import and Trade Balance: Is there any J curve effect in Bangladesh? Dhaka: Bangladesh Bank.

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APA Style

Kazi Rashedul Hasan, Ariful Malek. (2016). How Does Abrupt Economic Shock Impact Exchange Rate Movement: Empirical Evidences from Bangladesh. Journal of Finance and Accounting, 4(6), 310-320. https://doi.org/10.11648/j.jfa.20160406.11

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ACS Style

Kazi Rashedul Hasan; Ariful Malek. How Does Abrupt Economic Shock Impact Exchange Rate Movement: Empirical Evidences from Bangladesh. J. Finance Account. 2016, 4(6), 310-320. doi: 10.11648/j.jfa.20160406.11

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AMA Style

Kazi Rashedul Hasan, Ariful Malek. How Does Abrupt Economic Shock Impact Exchange Rate Movement: Empirical Evidences from Bangladesh. J Finance Account. 2016;4(6):310-320. doi: 10.11648/j.jfa.20160406.11

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@article{10.11648/j.jfa.20160406.11,
  author = {Kazi Rashedul Hasan and Ariful Malek},
  title = {How Does Abrupt Economic Shock Impact Exchange Rate Movement: Empirical Evidences from Bangladesh},
  journal = {Journal of Finance and Accounting},
  volume = {4},
  number = {6},
  pages = {310-320},
  doi = {10.11648/j.jfa.20160406.11},
  url = {https://doi.org/10.11648/j.jfa.20160406.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20160406.11},
  abstract = {The primary focus of this research is to study the impact of Foreign Exchange Reserve changes on key economic indicators, namely Inflation and the Exchange Rate of Bangladesh. In addition, the article seeks to illustrate the effects of recent theft from Bangladesh Bank’s reserve on Bangladeshi economy and exchange rate movement, based on multiple hypotheses: whether or not the changes in foreign exchange reserve can solely dictate the trend of the exchange rate; whether or not the changes in foreign exchange reserve can solely dictate the trend on inflation rate; whether or not the foreign exchange reserve kept increasing because of exports and increased inward remittance; and finally, how effective was Bangladesh Bank’s policy intervention tools to keep the economy in balance.},
 year = {2016}
}

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TY  - JOUR
T1  - How Does Abrupt Economic Shock Impact Exchange Rate Movement: Empirical Evidences from Bangladesh
AU  - Kazi Rashedul Hasan
AU  - Ariful Malek
Y1  - 2016/10/19
PY  - 2016
N1  - https://doi.org/10.11648/j.jfa.20160406.11
DO  - 10.11648/j.jfa.20160406.11
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
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EP  - 320
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20160406.11
AB  - The primary focus of this research is to study the impact of Foreign Exchange Reserve changes on key economic indicators, namely Inflation and the Exchange Rate of Bangladesh. In addition, the article seeks to illustrate the effects of recent theft from Bangladesh Bank’s reserve on Bangladeshi economy and exchange rate movement, based on multiple hypotheses: whether or not the changes in foreign exchange reserve can solely dictate the trend of the exchange rate; whether or not the changes in foreign exchange reserve can solely dictate the trend on inflation rate; whether or not the foreign exchange reserve kept increasing because of exports and increased inward remittance; and finally, how effective was Bangladesh Bank’s policy intervention tools to keep the economy in balance.
VL  - 4
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Author Information

Kazi Rashedul Hasan

Department of Finance, American International University-Bangladesh (AIUB), Dhaka, Bangladesh
Ariful Malek

Trade Finance, National Bank Limited, Dhaka, Bangladesh

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APA Style

Kazi Rashedul Hasan, Ariful Malek. (2016). How Does Abrupt Economic Shock Impact Exchange Rate Movement: Empirical Evidences from Bangladesh. Journal of Finance and Accounting, 4(6), 310-320. https://doi.org/10.11648/j.jfa.20160406.11

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ACS Style

Kazi Rashedul Hasan; Ariful Malek. How Does Abrupt Economic Shock Impact Exchange Rate Movement: Empirical Evidences from Bangladesh. J. Finance Account. 2016, 4(6), 310-320. doi: 10.11648/j.jfa.20160406.11

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AMA Style

Kazi Rashedul Hasan, Ariful Malek. How Does Abrupt Economic Shock Impact Exchange Rate Movement: Empirical Evidences from Bangladesh. J Finance Account. 2016;4(6):310-320. doi: 10.11648/j.jfa.20160406.11

Copy | Download

@article{10.11648/j.jfa.20160406.11,
  author = {Kazi Rashedul Hasan and Ariful Malek},
  title = {How Does Abrupt Economic Shock Impact Exchange Rate Movement: Empirical Evidences from Bangladesh},
  journal = {Journal of Finance and Accounting},
  volume = {4},
  number = {6},
  pages = {310-320},
  doi = {10.11648/j.jfa.20160406.11},
  url = {https://doi.org/10.11648/j.jfa.20160406.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20160406.11},
  abstract = {The primary focus of this research is to study the impact of Foreign Exchange Reserve changes on key economic indicators, namely Inflation and the Exchange Rate of Bangladesh. In addition, the article seeks to illustrate the effects of recent theft from Bangladesh Bank’s reserve on Bangladeshi economy and exchange rate movement, based on multiple hypotheses: whether or not the changes in foreign exchange reserve can solely dictate the trend of the exchange rate; whether or not the changes in foreign exchange reserve can solely dictate the trend on inflation rate; whether or not the foreign exchange reserve kept increasing because of exports and increased inward remittance; and finally, how effective was Bangladesh Bank’s policy intervention tools to keep the economy in balance.},
 year = {2016}
}

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TY  - JOUR
T1  - How Does Abrupt Economic Shock Impact Exchange Rate Movement: Empirical Evidences from Bangladesh
AU  - Kazi Rashedul Hasan
AU  - Ariful Malek
Y1  - 2016/10/19
PY  - 2016
N1  - https://doi.org/10.11648/j.jfa.20160406.11
DO  - 10.11648/j.jfa.20160406.11
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 310
EP  - 320
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20160406.11
AB  - The primary focus of this research is to study the impact of Foreign Exchange Reserve changes on key economic indicators, namely Inflation and the Exchange Rate of Bangladesh. In addition, the article seeks to illustrate the effects of recent theft from Bangladesh Bank’s reserve on Bangladeshi economy and exchange rate movement, based on multiple hypotheses: whether or not the changes in foreign exchange reserve can solely dictate the trend of the exchange rate; whether or not the changes in foreign exchange reserve can solely dictate the trend on inflation rate; whether or not the foreign exchange reserve kept increasing because of exports and increased inward remittance; and finally, how effective was Bangladesh Bank’s policy intervention tools to keep the economy in balance.
VL  - 4
IS  - 6
ER  -

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