The Exchange Rate Volatility and the Effects of Exchange Rate on the Price Level and International Trade of Bangladesh: A Review

This paper mainly examines the effect of exchange rate on the price level and international trade of Bangladesh. Along with this, it also has studied how exchange rate is related to 12 economic and non-economic factors. This gives an in-depth idea about how the exchange rate of a country changes. This helps to infer to the conclusions in the paper. The discussions were made after carefully reading various publications written about Bangladesh and other nations. It was found in the study that despite Bangladesh's economy being based on the US dollar, exchange rate fluctuation does not significantly affect Bangladesh's export or import. Imports become more expensive after depreciation, which could result in price increases in the economy. The exchange rate and the rate of inflation were found to be indirectly correlated