<div style="text-align: justify; "><span style="font-size: 1rem;"><b>Bangladesh Bank has introduced Crawling Peg Exchange Rate System to make the exchange rate more flexible.</b></span><br></div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Foreign Exchange Policy Department (FEPD) of the central bank issued a circular in this regard signed by its director Md Sarwar Hossain on Wednesday.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">According to the circular, it has been decided to introduce a Crawling Peg Exchange Rate System for spot purchases and sale of US dollar.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Under this system, a Crawling Peg Mid Rate (CPMR), has been set at Tk 117.00 per dollar with immediate effect.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Scheduled banks may purchase and sell US dollars freely around the CPMR with the customers and in interbank deals.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Earlier, on Sunday (May 5), Bangladesh Bank (BB) Governor Abdur Rouf Talukder said within a very short time the central bank will go for a market-based interest rate and apply a crawling peg system to fix the foreign exchange rate, reports UNB</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">He said the BB is working with prominent economists and bankers to prepare a contractionary monetary policy measure for curbing inflation and restoring macroeconomic stability.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">The crawling peg is a system of exchange rate adjustments in which a currency with a fixed exchange rate is allowed to fluctuate within a band of rates. The method fully uses the key attributes of the fixed exchange regime, as well as the flexibility of the floating exchange rate regime.</div><div style="text-align: justify;"><br></div><div style="text-align: justify;">Currently, the central bank is selling dollars to commercial banks at Tk111 per dollar.</div><div style="text-align: justify;"><br></div><div style="text-align: justify; ">bnbd/fas</div>