Bangladesh firms at risk as exchange rate turbulence exposes vulnerabilities.
The article looks at how changes in exchange rates affect Bangladeshi companies' profits, called 'exchange rate exposure'. By studying exchange rate movements in Bangladesh from 1999 to 2013, the researchers found that most companies were significantly affected during a period of turbulent exchange rate changes between the Bangladeshi taka and the US dollar. This suggests that businesses and policymakers in Bangladesh should be aware of the risks when the taka-dollar exchange rate deviates from its usual patterns.