Due to the fluctuations in dollar and euro, Bangladesh lost millions on exports last fiscal year. This could have been avoided, if the country had adopted a multi currency exchange rate. The multi currency exchange rate is a system that allows importers and exporters of any country to use any suitable currency in international trade. Generally, the US dollar is the most widely used currency for payment settlement in international trade.

Conceptualised in 2008, the multi-currency exchange rate is still at discussion levels. Until now, no country has adopted the regime. The Bangladesh taka appreciated 1.45 per cent against the dollar last year, due to which export earnings were lower than they should have been. At the same time, currencies of competing countries like the Indian rupee devalued 4.73 per cent against the dollar, the Pakistani rupee by 3.12 per cent and the Vietnamese dong by 1.3 per cent.

Bangladesh garment exporters say they are losing competitiveness and that the profit level in the garment business has gone down. They want the issues over currency exchange rates to be addressed so that the country does not suffer. It’s believed that hedging in international trade can effectively address the currency exchange risks.