Introduction of Crawling Peg System
Bangladesh Bank has implemented a crawling peg exchange rate system, enabling a more flexible currency management approach. This system sets the midpoint rate for the US dollar at Tk 117, aiming to stabilize the fluctuating currency market.

Details on the New Exchange Rate Policy
Under the new crawling peg system, scheduled banks in Bangladesh can now freely buy and sell US dollars at rates around the established midpoint of Tk 117. This measure is expected to offer better control over currency valuation and assist in managing the balance of payments effectively.

Economic Implications of the Crawling Peg
The crawling peg system strikes a balance between fixed and floating exchange rates, allowing limited fluctuations within a set range. This is a strategic response to the ongoing depreciation of the taka against the dollar since mid-2022, which has contributed to domestic inflation by increasing the cost of imports.