Currency Crisis in Bangladesh Economy: Some Insights

Abstract

Many countries around the world have faced currency crisis where they experienced substantial devaluation of local currency vis-à-vis some strong international currency within a short span of time resulting disruption in nominal as well as real activities. Although Bangladesh is not one of them yet in an integrated world possibility of experiencing such crisis is not remote. Using the concept of Exchange Market Pressure (EMP) in this paper we have tried to measure pressure on exchange rate in Bangladesh and then tried to find an early warning indicator of building EMP for Bangladesh. We found that in some occasions exchange rate situations got little erratic but never to the extent of crisis. We also found that before building up exchange rate pressure current account is most probably to show an early warning for Bangladesh. And ratio of M2 and reserve actually moves along with EMP index, so it may not be too informative for identifying currency crisis beforehand.

The challenges of the transition to market economies for post-communist East Asian countries

“…The development of EWS for currency crises and systemic banking crises has been systematically investigated, especially after the 1997-1998 Asian financial crisis, by many researchers, international financial institutions, and central banks with the purpose of prudential policymaking. The authors develop an innovative framework where they integrate four technical approaches: Logit/Probit, signal, Bayesian Model Averaging (BMA), and the Two-Stage Least Squares (2SLS) (Babecký et al, 2014;Rahman & Hasan, 2014). They apply their framework to detect systemic monetary and banking crises in Vietnam, a dynamic, fast-growing market that attracts FDI but with a high vulnerability level due to its macroeconomic instability.…”

Prevalence of insomnia and its association in COVID-19-recovered healthcare workers in some Hospitals of Vietnam

“…In addition, other factors such as having no sick leave, increased working hours, being frontline healthcare workers, depression, and anxiety were illustrated as risk factors for insomnia among healthcare professionals. [6][7][8] Sleep problems in healthcare workers during the COVID-19 pandemic have been studied extensively. However, little is known about insomnia in COVID-19-recovered healthcare workers.…”

“…Healthcare workers who have been diagnosed with COVID-19 showed significantly higher odds of developing insomnia than those with COVID-19-negative. 8 Therefore, this study aimed to explore the prevalence of insomnia and its related factors among healthcare workers after COVID-19 infection in Vietnam. The findings of this study may help to understand about insomnia and suggest appropriate supports to manage this psychological problem in healthcare workers post-COVID-19.…”