The article examines whether the value of Bangladesh Taka compared to the US Dollar follows the theory of purchasing power parity. The researchers used various statistical tests to analyze the long-term behavior of the exchange rate. They found evidence supporting the idea of purchasing power parity in both absolute and relative terms. Additionally, they discovered structural changes in the exchange rate over monthly data, but not in annual data. The real exchange rate of Bangladesh is not stable, meaning it fluctuates over time.