Presentation slides on Monetary system of Bangladesh.

It is a group work of Finance Department of Chittagong University. We 'Team Multipurpose' create this presentation slides to make easy to describe the monetary system of Bangladesh. Our team members are:
1. Diptadip Barua Timu
2. Kamol Tanchangya
3. Nazmun Nahar
4. Mohammad Hafazat Ullah
5. Md. Ishtiaq Hossain Mojumder
6. Sadia Karim
7. Lilun Chakma
8. Arpita Ghosh
9. Emon Dey
10. Arifa Begum

1. Monetary System
of Bangladesh
BCC-204
Macroeconomics

2. Page 02
Team Introduction
MD. ISTIAQ HOSSAIN MOJUMDER
ID- 22303017
ARPITA GHOSH
ID- 22303009
SADIYA KARIM
ID- 22303019
MOHAMMAD HAFAZAT ULLAH
ID- 22303030
KAMOL TANCHANGYA
ID- 22303101
ARIFA BEGUM
ID- 22303100
LILUN CHAKMA
ID- 22303069
EMON DEY
ID- 22303063
DIPTADIP BARUA TIMU
ID- 22303052
NAJMUN NAHAR
ID- 22303050

3. Page 03
WHAT IS
MONETARY SYSTEM?

4. Commodity
Monetary System
Page 04
Monetary System
Commodity
Backed
Fiat
Money
Debt
Based

5. Page 05
WHAT IS
MONETARY POLICY?

6. Page 06
Definition
By Central Bank
A Set Of Tools
For Economic Stability
MP

7. Quantitative
Policy Tools
Qualitative
Policy Tools
Monetary Policy Tools
Page 07
Monetary Policy Tools

8. Quantitative
Policy Tools
Page 08
Monetary Policy Tools
Interest
Rate
Open Market
Operations
Reserve
Ratio

9. Qualitative
Policy Tools
Page 09
Monetary Policy Tools
Margin
Requirement
Regulation
on Credit
Moral
Suasion
Publicity
Issuing
Directive

10. Expansionary
Policy
Contractionary
Policy
Monetary Policy
Page 10
Monetary Policy Types

11. Page 02
Monetary Policy Types
Interest Rate
Lower interest rate to encourage investment
Buy Govt. securities to increase bank liquidity
Lower CRR & SLR increase the amount of loans and
investment issued by Bank
Results in higher economic growth, higher demand
and supply of money and decrease unemployment
Open Market Purchase
Reserve Ratio
Increase Money Demand & Supply
Expansionary
Policy
In times of
RECESSION

12. Page 02
Monetary Policy Types
Interest Rate
Higher interest rate to discourage investment
Sell Govt. securities to decrease bank liquidity
Higher CRR & SLR decrease the amount of loans
and investment issued by Bank
Results in lower demand and supply of money and
combat hyper-inflation
Open Market Sales
Reserve Ratio
Decrease Money Demand & Supply
Contractionary
Policy
In times of
INFLATION

13. Page 13
Monetary Policy Objective
Economic Growth
Control Inflation
BOP Equilibrium
Exchange rate
Stabilization
High employment
Neutrality of Money
Control Interest Rate
Stabilize Reserve
and Currency
GOALS

14. Page 14
Monetary System of Bangladesh
MONETARY
SYSTEM OF
BANGLADESH
Fiat System
Bangladesh Bank
3 Components
Semi-Annual Policy

15. Page 15
Regulatory Body
Bangladesh Bank
Sole Regulatory Authority
Monetary Policy Department
Publish policy in Jan and July

16. Page 16
Components of System
02
Money Market
01
Capital Market
03
Foreign Exchange
Market

17. Policy Type: Contractionary
Interest Rate targeting
Framework
Policy Rate
7.75%>>>8%
Private Sector Credit
Growth Target
11%>>>10%
Public Sector Credit
Growth Target
31%>>>27.8%
Page 17
Monetary Policy: H2FY24
Inflation Target
6%>>>7.5%
GDP growth Target
7.5%>>>6.5%

18. Page 18
Monetary Policy: H2FY24 Reforms
01 03
02
REFERENCE INTEREST
RATE FOR LENDING
04 REVISED METHODOLOGY
FOR CALCULATING GIR
POLICY INTEREST
RATE CORRIDOR
UNIFICATION OF THE
EXCHANGE RATE
05
CREAWLING PEG SYSTEM
IMPLEMENTATION

19. Stabilize Exchange Rate
Decrease NPL Foreign Exchange Reserve
Anchor Inflation
GOALS
Page 19
Monetary Policy: H2FY24 Goals

20. Page 20
Monetary Policy: Challenges
02 03 04
05
01
The Challenges Faced Are...
High
Inflationary
Presssure
High Non-
Performing
Loans
Instability
in Global
Supply
Chain
Currency
Depreciation
and Reserve
Crisis
Transaction
Through
illegal
Channels

21. Page 21
Monetary Policy: Solution
02 03 04
05
01
The Steps Taken By BB Are...
Crawling Peg
Exchange Rate
Regime
Streamlined
Integrated
Interest Rate
Encourage
Remittance
Inflow
Sector Focused
Funding
Good
Governance
Legislation

22. Page 22
IS
I SUCCESSFUL
SUCCESSFUL
SUCCESSFUL
SUCCESSFUL

23. THANK YOU
FOR YOUR ATTENTION

24. Page 22
Reference
https://www.bb.org.bd/monetaryactivity/mps/mps_h2fy24.pdf
https://www.bb.org.bd/en/#
https://en.wikipedia.org/wiki/Monetary_system
https://www.worldbank.org/en/news/feature/2024/04/05/strong-financial-sector-fiscal-and-
monetary-policy-reforms-will-be-critical-to-sustain-bangladesh-s-growth-momentum
https://www.tbsnews.net/economy/banks-flout-crawling-peg-maintain-higher-rates-
remittances-imports
https://www.linkedin.com/pulse/monetary-policy-statement-mps-second-half-2023-unabated-
hossain/