Effective Study Skills Are the Sole Foundation of a Sound Essay

Effective study skills are definitely an important factor of a sound education. They don’t happen overnight. They â€Å"evolve and mature through practice, trial and error, feedback from others and reflection through different stages of the course† (Cottrell,S.2008. pg1) Working on effective study skills means the individual will find out what works best. Basically â€Å"learning how to learn† (Cottrell,S. 2008. pg 48). There are many different ways in which individuals learn, for e.g. ‘conscious learning’ – when the individual is aware they are learning (Cottrell,S. 2008. pg 48). ‘Unconscious learning’ – when the individual is unaware that it is happening but it may become conscious learning when they just know something and then wonder, how did I know that (Cottrell,S. 2008. pg 48). Each person has 3 different learning styles which affect their lives. Some people learn better using visual learning such as looking at pictures or diagrams. Other people are auditory learners i.e. listening to recordings. Then there are people who are kinaesthetic or tactile learners, they like to touch and play with things. (Wyman,P. 2011). By testing all these types of learning people will see what they find easiest to use and then be able to adapt it to their studies. Effective study skills could definitely be described as the sole foundation of a sound education when doing independent learning. A learner would acquire knowledge by his or her own efforts, therefore good study skills are vital (Meena. 2012). This comes into effect on a distance learning course i.e. foot health diploma. Having the choice of when and where studying takes place, means being disciplined enough to dedicate the time to it. In essence the individual is teaching themselves. To really succeed in a chosen subject doing something with genuine enthusiasm is most important otherwise individuals could just lose interest.

Organizational Behavior at Accenture Essay

1. Introduction This paper gives an overview of the organizational behavior (Organizational Structure, Culture, and Leadership) at Accenture– the last organization I worked with. Accenture is an international management consulting, technology services and outsourcing organization, with approximately 0.25 million people and clients in more than 120 countries. It has generated net revenue of US$ 27.9 billion for last fiscal year i.e. 31 st August 2012. (Accenture,2012) 2. Organizational Structure 2.1 Accenture’s Structure – At A Glance Organization’s structure divides the organizational activities and co-ordinates them to achieve the aim of the organization. Accenture is organized into various partially overlapping industry areas that allow the clients to choose from a variety of integrated consulting services. It upholds four global operations workforces: 1. Consulting 2. Servicing 3. Solutions 4. Enterprise Table 2.1 highlights five operating groups and their respective 19 industry groups within the organization. (Accenture Facts,2012) Financial services Banking Capital Market Insurance Health & Public Services Health Public Services Communications , Media & Technology Communication Electronics & High Tech Media & Entertainment Product Automotive Air, Freights & Travel Services Consumer Goods & Services Industrial Equipment Infrastructure & Transportation Resources Chemical Energy Natural Resources Utilities Table 2.1 The figure below displays the organizational chart of Accenture and explains how different sub-units interact with each other. Exam Number: B031449 Page 3 of 11 Figure 2.1 Accenture’s Organizational structure (Source: Official board, 2012) 2.2 Analyzing the Structure of Accenture Buchanan and Huczynski (2010) defined seven key elements of organizational structure and in this section, we will see how they relate to Accenture as an organization. It can be easily inferred from the organizational structure (Figure 2.1) and Work group division (Table 2.1) that Accenture is a large complex organization that requires its employees to be highly specialized in the tasks allocated to them to ensure that quality work is delivered. In order to make sure that all the employees are highly skilled with respect to their tasks, an intense induction takes place in the beginning of their journey in the organization. Accenture follows a tall organizational hierarchy structure due to its diverse workforce and workgroups where Span –of –Control for a Manager depends on the size of the project. Within the solutions workforce, in a single project, following hierarchy exists: Figure 2.2 Hierarchies in a project For example, Span of Control for the project in which I worked was a 96: Designation Programmers (10) Senior Programmers (8) Analyst Programmer (6) Team Lead (4) Manager Span of Control One Team lead , supervises 24 resources One Manager supervises 4 team-leads. So total Span of Control = 96 The tasks in each project in the Solutions workforce are departmentalized into different submodules i.e. Analysis, Design & Build, and Testing. Department of Analysis is responsible for creating business artifacts that detail out client’s requirement and proposed solution to achieve it. These artifacts are then passed to the Design & Build Team who create the high-level design documents and develops the products which client has asked for. Once the product is delivered, it is then passed on to the testing team to ensure that the final product is as per the business artifacts and there are no issues encountered. Accenture is highly formalized organization, where each project while working on a client’s requirement has to adhere to the policies, procedures and norms set by Accenture as well as the clients. This is one of the key approaches to gain the client’s trust. Since project managers have the authority to take decision related to their respective projects, we can call Accenture as highly centralized organization. 3. Organizational Culture Culture is embedded and reflected in every aspect of an organization. As stated by Ravasi, D., Schultz, M. (2006), organizational culture is a lay down of shared intellectual assumptions, which guide understanding and action in an organization by defining suitable behavior for diverse situations. Figure 3.1 is a three-layer model for organizational culture developed by Edgar Schein (2004). Figure 3.1: Schein’s three levels of culture – Source (Bohine, Markham, 2003) Insight on Accenture’s Culture 1. Schein’s three levels of Culture a) The first level i.e. Observable level is the most visible layer. Table 3.1 highlights few of the Surface manifestation of culture at Accenture Manifestation Ceremonials Course Norms Slogan Symbol Accenture Fun Fridays, sporting events, monthly birthday celebrations, quarterly awards Greenfield training for the new employees where the number of days varies from 1 week to 6 weeks depending on the employees Code of Business conduct led by multiple policies High Performance Delivered Accenture has six core values (Accenture Core Values) – Stewardship: Fulfilling our obligation of building a better, stronger and more durable company for future generations, protecting the Accenture brand, meeting our commitments to stakeholders, acting with an owner mentality, developing our people and helping improve communities and the global environment Best People: Attracting, developing and retaining the best talent for our business, challenging our people, demonstrating a â€Å"can-do† attitude and fostering a collaborative and mutually supportive environment Client Value Creation: Enabling clients to become high-performance businesses and creating long-term relationships by being responsive and relevant and by consistently delivering value. One Global Network: Leveraging the power of global insight, relationships, collaboration and learning to deliver exceptional service to clients wherever they do business Respect for Individual: Valuing diversity and unique contributions, fostering a trusting, open, and inclusive environment and treating each person in a manner that reflects Accenture’s values. Integrity: Being ethically unyielding and honest and inspiring trust by saying what we mean, matching our behaviors to our words and taking responsibility for our actions Rewards and Recognition in Accenture: Accenture has various ways of acknowledging an employee’s contribution towards achieving the â€Å"High Quality† work. In addition to promotion, few of the awards given by Accenture (specific to solutions domain) are: ACE Award – Accenture Celebrates Excellence is an award given on quarterly basis to the employees who show outstanding performance during a quarter in their respective industrial groups. The nominations for these awards are forwarded by the project manager along with the citation to justify the nominations. Innovator for the quarter – This category of award is held at different project levels and is awarded to an individual or group of people who have innovated something to either add value to the client or helped in increasing automated work to save on efforts. Star of the month – This category of award is also held at project level where the work of an employee performing extraordinary is acknowledged. Propel Awards – This category of award is held at industrial group level where the employees are awarded against different criteria’s e.g. Adding Value to Client, Organizing quality work and anticipating critical situations etc. Celebrating Performance – Celebrating performance is a tool through which Team leads and above acknowledges the work of an individual by giving them some points. These points can be redeemed via a shopping catalog holding a range of different things. c) The third level i.e. basic assumption is invisible layer. It is the perception held by individuals concerning human behavior. As mentioned earlier, this cannot be seen but felt by the individuals and hence is difficult to be described in words for any organization. 2. On analyzing Accenture based on different Cultural framework and Cultural typologies it can be said that Accenture falls into Role culture and Communal culture. The justification for this goes below: ï‚ § Accenture is very much driven by its policies, procedures, and rules, which makes it high on formalization aspect. Figure 2.1 clearly shows the level of hierarchy that Accenture has. Managers at top of the hierarchy work as per their roles and specializations that make Accenture a highly centralized organization and hence putting it into a Role culture. However, if we deep dive to the lowest division i.e. the Projects, the task to be achieved is allocated at the Managerial level and is then cascaded down to different team members based on their expertise. The aim of the team is to ensure the task is delivered on time and with a high quality. For example, in my projects, there were times when a task demanding high expertise on specific domain were assigned to the senior programmers instead of the team leads. This clearly displays that the project division is on to the Task culture i.e. high formalization, low centralization where people are acknowledged based on their expertise and not just position. ï‚ § Accenture has very strict entry criteria and employees who suit the working environment are selected. Once the employees are in the company, another level of assessment happens to check the skills to identify which project who the employee be best suited for. During an initial phase in the project, the employees are giving an intensive training about the core values of Accenture as well as the client that they are working for. The roles and goals for each individual are made clear right from the beginning and each employee is expected to have a degree of flexibility to switch the roles as and when required. All these characteristics make Accenture falls into the category of Communal culture i.e. High Sociability and high solidarity. 4. Leadership Walt Disney said, â€Å"You can dream, create, design, and build the most wonderful place in the world, but it requires people to make the dream a reality† (Disney, 2011) Accenture groups skills, competencies, and personality traits of effective leaders into three vital pillars (Accenture Leadership): Visionary Evangelist- They see possibilities and inspire others with their vision; they know where the company is headed and what its customers will value in the future. Relationship Builder-They enlist the support and capabilities of others by building loyalty, motivating and engaging. Manager of Execution- They provide structure, discipline and a sense of priorities to get things done. Paul Hersey and Ken Blanchard (1998) described the concept of situational leadership. Situational leadership is an approach of identifying the most effective way of motivating, directing, and supporting employees to get the work done. Whether it is the leaders at the top of hierarchy (CEO) or the leaders at the lowest division (project managers), leadership style in Accenture varies depending upon the situation. Figure 4.1 Situational Leadership Model (Source: Davidmerzel, 2012) How Leadership style works in Accenture When an employee is new to a project or the organization, it is ensured that a counselor and a supervisor are assigned to him. It is supervisor’s responsibility to ensure that the employee understand the norms and the working culture of the project and Councilor helps the employee with the career aspirations and issues (if any) faced by him while working in the project. In other words, it can be said that supervisor acts as the coach and councilor supports the employee at the same time. Supervisor and the Councilor are not the same person and it is the councilor who remains the same throughout the journey in Accenture where as supervisors keep of changing as when an employee progresses. Once an employee displays the ability and the skills required to tasks assigned (i.e. generally at Analyst Programmer level), the work is then delegated where very few directions and support are required. At no point in Accenture, you would find a leader portraying the directive leadership. Support and mentoring is always provided until an employee is capable to work on his own. 5. Synopsis Accenture is an organization on the move, one that is engaged in a good range of projects in various locations. Its culture varies from one extreme to another depending on the client and the geographical location of the office in which one reside. Employees, working at the client site, particularly for extended periods, find themselves following client’s culture as well as Accenture’s. It has a youthful environment that helps in making contacts, which lasts as an employee moves from project to project. In spite of the youthful, work-hard/play-hard atmosphere, employees strictly adhere to Accenture’s high standards, which require dedication and discipline on behalf of the employees. People at Accenture genuinely respect and admire each other. Willingness to help others and strong interpersonal skills are more common that being self-centered. This can be easily seen by the prompt responses of peers in different cities and countries towards any technical query being raised at the company’s portal. To summaries, Accenture surely is a strong cultured and centralized organization where the core values of the organization and client’s both are kept in mind and at the same time its ensured that employee’s professional aspirations are also met. I would definitely say a great place to work! 6. References (Arranged alphabetically) 1. Accenture, 2012 – About Accenture Available at: http://www.accenture.com/gb-en/company/Pages/index.aspx Accessed on: 26th October 2012 2. Accenture Core Values: Living Accenture’s Core Values [online] Available at: http://careers.accenture.com/gben/working/overview/values/Pages/index.aspx Accessed on: 26th October 2012 3. Accenture Facts,2012 – Q4 Fiscal 2012 Available at: http://newsroom.accenture.com/fact+sheet/ Accessed on: 26th October 2012 4. Accenture Leadership: Why Leadership and Culture Matters [online] Available at: http://www.accenture.com/SiteCollectionDocuments/PDF/Accenture_Why_Leadership_and _Culture_Matter.pdf Accessed on: 27th October 2012 5. Accenture Logo – Accenture UK Limited [online] Available at: http://www.enterprisemanagement360.com/company/accenture-uk-l imited/#.UIqNsm_Mjsw Accessed on: 26th October 2012 6. Bohine, Markham, 2003

Influence of South Africa Essay

It is reported that South Africa has become the third largest iron ore supplier for China through the competition with India, which will have a great influence on China’s mining machinery industry. According to Business Day Live’s report, the iron ore export to China from South Africa was 40.6 million tonnes in 2012, while Indian exports plunged nearly 55% to 33 million tonnes. It is evidently that South Africa managed to increase of its share of iron ore sales to China in the unstable economical situation. The large amount of iron ore’s import into China will inevitably have a great influence on the mining machinery industry no matter in China or in South Africa. DSMAC president Lu Hongbo, commended : â€Å"The increasing contact between China and South Africa is a great power for the two countries’ mining industry development. It is a win-win situation no matter for China or for South Africa.† Analysis of South Africa’s Exporting Iron ore to China On the one hand, it promotes Chinese mining industry’s prosperity. In 2012, due to the world economy slagging, the mining industry encounters the â€Å"cold winter† universally, no exception of China mining industry. However, the increasing importing of iron ore from South Africa is a stimulate in China mining machinery market. Because the preliminary step for iron ore’s utilization is crushing process, in which the crusher plays an important role. On the other hand, it is also a push for Chinese mining machinery’s export into South Africa. For example, DSMAC, a leading China feeding, crushing and screening equipment manufacturer and supplier has opened up Africa market and determined to extend in that area. Until now, DSMAC has the general contracting ability of 1000 to 30000 tpd sand and aggregate production line, including the project design, equipment configuration and installation experience. Early in 2010, DSMAC successfully undertook a large project of 10000 tpd artificial sand making line, which just needed three months and brought profit for customer within half an year. Besides South Africa, Australia remains far and away the biggest exporter of iron ore to China. Analysts believe 2013 will see Australia and South Africa further increase their share of the global iron ore market. It is obvious that this situation will propel the mining industry’s advancement.

Macroeconomics Assignment Example | Topics and Well Written Essays - 750 words - 1

Macroeconomics - Assignment Example (a) If all of the currency have been deposited by Fijians in Fijian banks and the reserve ratio targets by the banks is a 100%, then the money in supply is equivalent to the amount of the deposits Fijians have deposited in the banks because they do not retain any amount. The liquidity preference framework shows how changes in demand and supply of money affect interest rates. Increase in equilibrium interest rates is a result of increase in money demand and decrease in money supply. There is a decrease in equilibrium interest rates due to decrease in money demand and increase in money supply. The role of issuing money is assumed by the central bank. Any money supply changes must originate from the central bank monetary policies. Printing more money by the central bank causes an increase in money supply. The central bank changes the money supply through channels. These channels includes buying and selling bonds from the public in exchange for money, changing reserve requirement of banks, and lastly, changing the borrowing rate of discount by banks from the central bank. By using these three tools, the central bank can lower rates of interest by raising the supply of money and increase rates by cutting the money supply. Increase in supply of money causes an increase in money demand and interest rates. The expectation of this is a higher inflation which makes the prices of items to go up. Individuals will tend to consume more and save less. The effect of this will be less capital accumulation. This shows that inflation will have a negative effect on output as people will reduce their labor supply and in turn output contracts. Investment transactions become more expensive, reducing capital accumulation leading to a decline in output. (a) Country PIN produces 4 machines and 3 breads per person and whereas country PANG produces 3machines and 8

Financial Sector in GCC Countries Essay Example | Topics and Well Written Essays - 3750 words

Financial Sector in GCC Countries - Essay Example Nonetheless, current events indicate increasing cooperation among GCC countries on particular trade matters such as customs duties, quality standards, cross-member investment, and intellectual property right protection (USTR 179). An agreement for free trade among the six member countries in 1983 was one of the early achievements of the Gulf Cooperation Council. All of the six member countries were signatories to the United Economic Agreement which provides duty free access to all products manufactured in GCC member countries with compliance to existent origin and ownership laws (Al-Muharrami et.al. 5). With the aim of achieving goals for greater economic integration, member states agreed in 1999 to set external tariffs to a common range by 2005. In January 2003 the six GCC member states put up a Customs Union which in theory implies that member states are to adopt integrated customs laws and regulations, one point-of-entry, with open internal exchange of products and classification of products as national origin inside the GCC. Tariff application, income allocation and quality standards are some of the unresolved issues related to the bylaws of the Customs Union. The council was set to agree in 2005 on convergence criteria for adoption of a single currency in 2010 (USTR 179). Bahrain is one of the most diverse and active financial centers in the Gulf. Much of the financial sector's growth can be credited to the oil boom of the 1970s and the replacement of Beirut as a major banking hub during the 1980s. The financial sector is presently the biggest contributor to GDP at 27.6 per cent. Around 370 offshore banks and representative branches are established in Bahrain (IMF Country Report). . The Bahraini government is planning to draw more foreign banks to the area and is anticipating eliminating impending competition from Dubai and a return of Beirut. The government is assessing the structure that polices commercial banking sector of Bahrain in line with the above objectives. The government implemented new, fortified policies for the insurance sector in 2001 (USTR 33). The Bahrain Stock Exchange (BSE) started operation in 1989 with two responsibilities: playing as a securities controller with management of the capital market and functioning as a securities exchange. Foreign businessmen will be permitted to own 100 percent of listed banks within three years. The BSE has also introduced several information facilities to disseminate real-time values for all listed in real time through satellite TV (IMF Country Report). In July of 2000, the Ahli United Bank (AUB) was established by Bahrain's Al-Ahli Commercial Bank (ACB) and United Kingdom's United Bank of Kuwait (UBK) as an offshore banking unit. Trading began in August 2000 of shares of the AUB. The bank has a capital of $323.5 million which symbolizes an important development in the future of financial sectors in the region (USTR 33). Finance and Banking in Kuwait Kuwait has benefited from considerable budgetary surpluses starting from 1999. The budgetary surplus has risen to 40 per cent of GDP in 2005 and is projected to be in the rate of 43 per cent of GDP in 2006. This has been brought about by remarkably higher oil prices coupled with larger

Parking Economics Essay Example | Topics and Well Written Essays - 500 words

Parking Economics - Essay Example Legal barriers restrict competition through methods such as patents or copyrights, public franchise and government licenses (Duffy 119). Price discrimination and a single price markets are the two main price strategies utilized in monopolies. For most monopolies, low prices facilitate larger output; therefore, single price strategy is efficient in determining output and price. Single price monopoly involves selling its entire output unit at similar prices to all customers. This strategy builds on the flux in demand for goods. In an elastic environment, single price monopoly works best by increasing the production of a unit and reducing the selling price thereby, increasing marginal revenue that translates to profits. However, in a rigid demand market setting, fall of price in the output translates to decrease in total revenue. In such markets, monopolies reduce the number of units produced and increase the price of each unit. This will decrease the total cost but increase the income profits (Duffy 120). In a perfect competition market, equilibrium occurs when the demand is equal to supply in regard to unit quantity and price. On the other hand, equilibrium in a single price monopoly markets occurs when the marginal revenue and the marginal cost are equal. Monopoly equilibrium relies on a higher price smaller output strategy. Perfect market competition is more efficient than a monopoly market because the marginal social benefits and the marginal social costs are equal. This equilibrium describes the maximization of consumer surplus and producer surplus hence production of efficient output. Firms that run a monopoly are not able to get maximum outputs from the available inputs. In summary, marginal social benefit exceeds marginal social cost leading to dead weight loss. However, this discrepancy can be averted through rent seeking which is the process of redirecting the surplus from a

Sociology Exam questions tackling Essay Example | Topics and Well Written Essays - 1000 words

Sociology Exam questions tackling - Essay Example Sending food and supplies to starving people in developing countries can sometimes prove to be more harmful because it shakes up the economy. The market in the developing country can become flooded with goods that are donated, meaning these products do not have production cost to recoup, unlike the local products. Because of this competition, the local products are forced to lower their prices which can make them lose their investment. For example, if there are food drives from richer countries, there would be a large supply for a commodity, let’s say corn. This would down the prices of the local farmers’ corn produce, which is bad for them. In short, sending food and supplies can kill the local industries in developing countries. Discuss the main assumptions of world systems theory and outline how this perspective views the economy. The main assumption of the world systems theory is to view the world-economy as a whole, not by merely units that stand alone per country. The study of the social change in any element in the system such as regions, ethnic groups and classes must begin by finding out where in the economic scale these certain elements stand. For example: a state. In the world systems theory, the state will be examined for the changes in has undergone internally, and it will also be studied as an element of society which is affected by changes by the world economy as well. World systems theory is basically the foundation of globalization. According to the main proponent of the idea, Immanuel Wallerstein, there is only one world that is connected by a complicated and complex economic exchanges and an endless accumulation of capital. This theory has features that separate it from other theories. The core, periphery and semi-periphery terms in this theory explain how it works. The societies that work outside the world system is at the periphery while the core has a high level of technological development that enables that society to manufa cture complex products. Now, the role of the periphery is to supply the core these raw materials and cheap labor. There goes the inequality between these societies as the people from the periphery would also buy the manufactured products (fashioned from theirs) from the core. This theory can make the whole world a commodity. It promotes the commodification of materials, including human social relationships, labor and materials. This makes everything material and therefore, everything can be bought. List and describe the three major contributions of feminist research toward understanding the relationship between work, labor and gender. Major contributions of feminist research toward understanding the relationship between work, labor and gender includes equality, laws pertaining to the female sex (like maternity leaves) and the ability of women to participate in work and labor and even sexual violence because of discrimination due to lack of education and work opportunities. Before, s ocial rules deemed women as second class citizens. This is just a social construct, no scientific basis whatsoever. This is usually what happens when something is termed as weak or strong. The feminist movement began in the late 1900s. This brought along large waves of change in the world, and was backed by â€Å"universal† values that claim equality between sexes. This movement is, according to

Professional and Academic Goals Coursework Example | Topics and Well Written Essays - 250 words

Professional and Academic Goals - Coursework Example e process of handling these diseases requires networking and information exchange among medical practitioners, characterized by provision of orders and directions from experienced medical experts. Therefore, it would be inappropriate for the author/writer of the post to claim that his/her intention to study pathphysiology and its treatment is a means of being autonomous, without being instructed by doctors. The writer to this post seems to have been driven by passion towards being a professional nurse. He says that his experience as a nurse has made him learn more; it has also given him the desire to seek more knowledge on how to handle issues ascribed to human life. This is an appropriate strategy towards selecting a course or a college that offers a specific course. The nursing field is characterized by both physical and mental challenges especially among the nurses. This means that the nurses have to persevere some conditions in order to save human’s life; therefore they must be not only be driven by the desire to access the physical benefits associated with being a nurse, but also the passion to work in this complex disciplinary to save human’s

Marketing Plan Research Paper Example | Topics and Well Written Essays - 4000 words

Marketing Plan - Research Paper Example However, it is evident that a number of challenges have engulfed the company within its marketing and human resource sectors, which are threatening its survival in the dynamic business market. From this point of view, the company has a challenge to re-launch its organizational strategies to ensure that the company survives in the competitive telecommunication market. Organizational marketing is an important business strategy as it defines the mechanics that an organization deploys to attract the customers to buy their products. For brand managers, marketing ensures that company sales remain high and that the customer population increases every time (Lamb, Hair and McDaniel 11). In the contemporary business environment, competition is inevitable and companies are always struggling to reach out to as many customers as possible. The changes in market trends have made issues of marketing more complex and demands new approaches of marketing. From a critical point of view, it is evident that new approaches of marketing are slowly pushing away the traditional marketing approaches, putting marketing managers at their toes to adapt to these changes. The telecommunication company has become one of the most dynamic markets due to rapid changes in information technology making it a necessity for service providers to be flexible and agile in responding to ma rket issues. The purpose of this essay is to design an efficient marketing plan for Sprint Corporation. Assuming the role of a brand manager, I will develop a strong marketing strategy that Sprint to ensure that the organization remains profitable by attracting even more customers to buy its products and services. The success of any organizational function depends on the type of leadership that the organization deploys within the business structure. For an organization to survive, it must be able

Evaluation of Gender Inequality Essay Example for Free

Evaluation of Gender Inequality Essay Charlotte Brontà « wrote in Jane Eyre, â€Å"I am no bird; and no net ensnares me: I am a free human being with an independent will.† No visible net ensnares womankind. However, long have women been viewed and treated as unequal to their male counterparts. This inequality is alive everywhere. As displayed in Of Mice and Men, gender inequality is alive even in fiction. Gender equality has been an ongoing struggle in fiction and reality, our country and foreign countries, and in the past and the present. Gender inequality effects the people of the entire world. For example, there are major issues involving gender in Egypt. In Egypt, there are the sparks of movements trying to introduce women into government without challenging the reigning Brotherhood. Another place that struggles with gender inequality is the U.S. where women representation in government is very low. Only 17 out of 100 senate seats are held by women. Even in the U.S., one of the most highly regarded nations in the world, women are not entirely equal. Gender inequality has effected people all through time. In example, it wasn’t until the 1920’s that women could vote in the U.S. Women have long been considered less than their male counterparts. Only recently have women put a dent in the extreme patriarchy that has existed all through history. Today, women still are of unequal representation, pay, and rights across the globe. For example, in the U.S. today, there is an average pay gap of 77% (as of 2009). This means women earn 77 cents to a man’s dollar as pay for the same positions. This is one example of how inequality lingers in modern day first world countries. Gender inequality is also existent in both reality and fiction. We have already given many examples of real cases and statistics including representation and wage gaps. However, there is also gender inequality in the fictional world. For example, in Of Mice and Men, Curly’s wife is a prime example of gender struggles. She is constantly being marginalized. Sheis viewed as a thing that would get Lennie in trouble instead of an actual person. Even her name is never spoken. She is referred to as â€Å"Curly’s wife† which reaffirms Curly’s ownership over her and her status as a possession or an object instead of a human being. When her dead body is found, the first and only comment made of her death was along the lines of, â€Å"Poor boy.† Curly’s wife’s death was seen as nothing but something unfortunate for Lennie. This contributes to the pile of evidence that can conclude that Curly’s wife was considered a mere object. Through time, in foreign countries, and even in between pages, gender inequality has been a constant struggle. Charlotte Bronte wrote that she, a woman, is no bird. A woman, after having a net thrown on her and her fellows time and time again, must decide to declare that they are not a bird, but a human being. Human beings aren’t to be ensnared. It is said that the first step of fixing a problem is the recognition that it exists. So, women must understand that the net encompassing them is not a blanket, but a prison. Together, womankind must stand and declare, â€Å"We are not birds.† Hopefully, these examples of gender inequality is bringing more attention to the â€Å"net.† Hopefully, the realization will dawn that gender inequality is thriving among us and will not die out on its own. It has existed everywhere, always. A mighty effort is to be made to begin the reversal of this inequality and injustice.

Phonics in Early Years Teaching

Phonics in Early Years Teaching Reading is important and motivates students to communicate and think critically and empowers them to learn a variety of lessons. Students in primary schools are still weak and not interested in reading either English or Malay books. They fall short in exams as they have not mastered reading skills and if this weakness is not rectified early, it will be disastrous for a student at secondary level. Reading is a complicated process more accurately described as a number of cognitive processes happening at the same time Hjh. Hasnah Kula , the Senior District Education Officer ( Brunei III ) emphasized how important reading ability in Brunei is and this ability needs to be cultivated from the early years (Primary school) . Reading is about understanding written texts. It is a complex activity that involves both perception and thought. Reading consists of two related processes: word recognition and comprehension. Word recognition refers to the process of perceiving how written symbols correspond to ones spoken language. Comprehension is the process of making sense of words, sentences and connected text. Readers typically make use of background knowledge, vocabulary, grammatical knowledge, experience with text and other strategies to help them understand written text. Teaching struggling readers to read takes time and patience. Many teachers are concerned about the numbers of elementary children who struggle with reading. Such concerns are warranted. Studies indicate that when students get off to a poor start in reading, they rarely catch up. Struggling readers encounter negative consequences such as an assignment to special education classrooms or participation in long-term remedial services. Further, as they progress through the grade levels, the academic distance from those who read well grows more pronounced (The Learning First Alliance, 1998; Rashotte, Toregesen, Wagner, 1997; National Reading Panel, 1999; Torgesen, 1998). Why do some students struggle with reading and what can be done to increase their success? These questions plague teachers and parents and are ones that compelled them to search for answers. 1.1 Background of the study Decoding is the ability to apply the knowledge of letter-sound relationships, including knowledge of letter patterns, to correctly pronounce written words. Understanding these relationships gives children the ability to recognize familiar words quickly and to figure out words they have not seen before. Although children may sometimes figure out some of these relationships on their own, most children benefit from explicit instruction in this area. Phonics is one approach to reading instruction that teaches students the principles of letter-sound relationships, how to sound out words, and exceptions to the principles. Therefore, appropriate early direct instruction seems to be the best medicine for reading problems. Reading is not developmental or natural, but is learned. Reading disabilities reflect a persistent deficit, rather than a developmental lag in linguistic (phonological) skills and basic reading skills. Children who fall behind at an early age (K and grade 1) fall further and further behind over time. Longitudinal studies show that of the children who are diagnosed as reading disabled in third grade, 74% remain disabled in ninth grade (Fletcher, et al., 1994; Shaywitz, Escobar, Shaywitz, Fletcher, Makuch, 1992; Stanovich, 1986; Stanovich Siegel, 1994). Lack of phonemic awareness seems to be a major obstacle to learning to read (Vellutino Scanlon, 1987a; Wagner Torgeson, 1987). However,in Brunei , it was only in Year 2009 that the phonics approach for teaching reading was introduced . It is one of the approaches that is included in the new educational system,known as the SPN21, where the phonics approach needs to be implemented in teaching reading and writing to Preschool and Year 1 students . The action was also taken in response to a national report which indicates that about 76 percent of students in Year four and 44 percent of students in Year six had not learnt the basic literacy skills in Brunei ( National Study of Student Competencies in Mathematics and English , 2008). In an effort to introduce teachers to the phonics approach, the Ministry of Education had conducted workshops especially for the English language teachers which aims to provide them with the phonics approach knowledge and how it is taught . 1.2 Statement of the Problem Having an effective teaching instruction such as the phonics approach to teach reading in a classroom would be a relief for any teachers who face problems with students who are unable to read . However, not all students could achieve the same level of reading in a classroom even though the same approach was used and was found to be effective with others. While most students are ready to read on a higher level, effective classroom teachers might recognize that some students are lagging in reading skills. Those students who are not strong readers often are not as successful as they could be in a given content area. Their progress is slow without the help of an observant and effective teacher. This is where a remedial reading program is needed to help these struggling readers to read . In most schools in Brunei, children who have problems in reading are placed in a remedial program through a pull-out system (students are taken to a special room during a particular lesson for a remedial session ) which is run by a special education teacher . However, the remedial lessons were usually implemented for teaching reading in Bahasa Melayu and as a result the reading problem in the English language remains . As for the school in this study,the remedial reading session was run on the initiative of the English language teacher during the English lesson itself. This was seen to be ineffective because this respective teacher found it difficult to provide extra time during the lessons to help these difficult readers because the teacher would also need to deal with some other average students who might need help during the lesson . Therefore,the remedial reading sessions were not consistently done with these difficult readers. A successful remediation requires direct, intensive intervention with an effective program. Effective remediation is not teaching down to a lower level, helping the students learn ways to manage his reading difficulties, or continuing practice of impaired reading. Effective remediation directly builds necessary skills so the students acquire the necessary skills and can advance. To read proficiently the student needs to convert print to sound and develop phonologic processing pathways. ÂÂ  After fundamental phonemic processing is established the student needs to build advanced skills. Effective reading remediation programs directly develop all skills necessary for proficient reading. Phonics could be useful to teach reading to difficult readers in the Primary school, especially in terms of getting them familiar with the sounds of each letter. Moreover, they need a program which can help them to read in a short period of time so that they might not fall back too far from other students of their levels. Ignoring them and hoping that somehow they would catch up and be able to read like their fellow classmates is likely to create problems in the future. 1.3 Purpose of the study This study aims at achieving the following objectives : To explore the implementation of the remedial reading program using the phonics approach for difficult readers in a Year 4 class. To measure the reading achievement of these difficult readers within 3 weeks of daily remedial sessions (30 minutes per day). To promote a suitable time (outside the classroom lesson) for the teacher to run a remedial session with the difficult reading students. 1.4 Research Questions How is the remedial reading session in the school being conducted? How much is the phonics knowledge being included in the program? What is the impact of a constant reading remedial session with difficult readers on their reading performance using a Synthetic phonics approach? To what extent would a morning session hours (before the classroom lesson) and recess hours could be spent for remedial reading session . How much could the students improve from these sessions? 1.5 Significance of the study One of the major struggles of the primary school teachers is how to identify the most effective ways to teach their students how to read, especially with all the different learning styles among children. Children come to school with varied reading abilities and literacy experiences. All children have the ability to learn to read but at different rates and in different ways (International Reading Association, 2000; Moore Whitfield, 2009). It is essential for a teacher to have a comprehensive knowledge of the reading process, the ability to observe and assess a students strengths and weaknesses, and the ability to adapt ones teaching in response to the learning needs of the students (International Reading Association, 2000). It is the responsibility of the teachers to provide reading instruction that meets the needs of these diverse students. Teaching students to read is one of the most challenging things in teaching because teachers would need to be alert with their teaching approaches or instructions so that they meet each and every children needs in learning to read .And while many children follow a typical pattern while learning to read that allows their individual differences to be met with one program, those who do not follow that pattern often fall behind. Many remedial programs are simply a slower version of reading programs used for typical students, but these dont necessarily work for atypical learners. Thats why it might be more effective to develop remedial programs for specific students. Therefore, throughout this study, it was hoped that the result of the research can be beneficial for English teacher in structuring a remedial program for their difficult readers and to get them to reflect on their efforts in helping the these students to learn reading . It was also hoped that the results would be able to make the teachers, school administrator and the curriculum developers of the school under study to realize how important a synthetic phonic approach is to be included in the remedial program . 1.6 Limitations of the Study This study however has its limitations . These include the length of research time , small samples used and also the different reading difficulties of the participants . The sessions were conducted over a three-week period only where the participants were taught five times in a week ( 2.5 hours in total) . The study only involved two students from a Year 4 class in a selected school in Brunei Muara District (small sample size) . The reading difficulties of the participants might be different from others because difficult readers might have so much difficulty in applying the phonics skills and therefore this might vary the instructional approach used in this study with other settings. Thus , the findings of the study should be interpreted with these limitations in mind . 1.6 Definition of Terms The terms below were used in this study: Letter- sound relationship : Skills associated with sound-letter knowledge: the awareness of how spoken sound and written letters relate to each other in the English language the names of letters and the sounds associated with them the ability to recognize words previously seen the ability to apply knowledge of how sounds and letters are related to each other to figure out the pronunciation of words not seen before, which is known as decoding (Shedd, 2008) Phonemic Awareness This skill involves the ability to manipulate and understand sounds, and the relationship between sounds and words. For example, children learn to recognize that two words sound alike (or rhyme), and can identify the first or last sound in a word. They are able to manipulate sounds in words to make up new words (eg might without the /t/ sound is my), and recognize that sentences are made up of separate words. (http://elr.com.au/phonological/design.htm#a03) Difficult Readers Students with the following reading problems : difficulty in matching sounds and letters has trouble in reading and spelling phonetically decode in a very laboured manner Remedial Lessons Lessons conducted especially to help low achieving students which is designed to help these students to improve and simplify their learning difficulties and to catch up with other fellows of the same levels. Phonics Teaching reading by training the students to associate letters with their sound values.

Relationship Between Lennie And George Essay

Relationship Between Lennie And George Essay Analysing the relationship between George and Lennie in Steinbecks Of Mice and Men In the opening section of the novella, Steinbeck wishes to portray the relationship between George and Lennie as leader and follower. Steinbeck highlights that they walked in single file down the narrow path and when they came into the open, one stayed behind the other; which immediately indicates that George is dominant in this relationship, therefore Lennie is somewhat irresponsible, dependent and incapable of looking after himself. This image illustrates that George acts as a parental figure and Lennie is similar to a shy child hiding behind a father. Furthermore, in Chapter 2 this idea is developed when George also carries Lennies work card, knowing that Lennie would lose it if he was responsible for it Think Id let you carry your own work card?. This quote shows how George acts as a parental figure for Lennie; George must look after Lennies important possessions, as George knows that he will just lose them because of his simple-mindedness. The rhetorical question also shows Geor ges frustration with Lennies small mental capacity as he is always creating problems. Also, when we are first introduced to Lennie and George, the main physical differences between them are highlighted. Lennie is huge, shapeless of face and often dehumanized to be that of a bear. However, George on the other hand, is small, quick and thin with, restless eyes and slender arms. This description is a form of juxtaposition, as the two characters contrast in appearance. It would form an image in the readers minds of two characters that differ greatly, and could supposedly be the opposite of one another. I think the authors intentions of using of this language technique, would be to make a point of their differences and suggest that their personalities also greatly contradict each other. So this makes us read on to find out why we find these two opposing characters together in the story. Throughout the passage, Lennie is referred to as a bear, and a huge companion with dragging feet. This creates an image in the readers mind of a man who is giant-like in size and is supposedly clumsy and uncoordinated. The authors use of the animal Bear to compare Lennie to, symbolizes that he can be the dangerous, strong bear, or the cuddly teddy bear. It indicates that whilst Lennie is a big and strong man, he is also just a playful, childish boy who needs guidance. Steinbeck also metaphorically compares Lennie snorting into water like a horse; Lennies actions are similar to an animal, unlike humans who cup their hands to drink water. This emphasizes that he will act upon an animal instinct and his animal characteristics convey Lennies great strength that he is unaware of; this holds immense importance in the novel as it foreshadows the downfall of Lennie due to his powerful strength and animal instincts. Verbs and adverbs are chosen specifically to reflect Lennies and Georges attitudes and characteristics. Generally actions and descriptive words attached to Lennie show a lack of confidence and maturity, for example words such as dabbled and timidly displays Lennies hesitancy and unassertiveness, whilst George on the other hand has words adverbs such as sharply and gently which suggests that he is thinks a lot before all his actions. Overall the reader can deduce without any explanation required, that Lennie most likely needs supervision from George, and looks up to him as a role model because he admires his intelligence and general behaviour/demeanour. In the books dialogue, Steinbeck uses slang,colloquialism, and non-standard terms (aint, would of, brang, and so on) to convey an authentic sense of the characters. This casual dialect(shes a loo loo, Curleys got ants in his pants) helps recreate a particular time, place, and social background that make the book sound real as well as the characters more relatable. Whats more, is that the lack of standard English is constant throughout all speech, characters dont speak with more refinement to other specific characters. Even Lennie, though hes slow, isnt less able to communicate with words than others.This aspect equalizes the characters and gives them a lack of identity or purpose. Overall it addresses the theme of power and each characters lack of control over their own destiny. Readers may interpret these aspects negatively, because it is symbolic of the lack of importance or significance people had back in the contexts day. However, on the other hand you could interpret it as a goo d thing that all of society was equal, everyone had equal chances and people felt a good sense of community and belonging. Towards the end of chapter 6, as Lennies captors advance towards him, Steinbeck gives a brief description, using pathetic fallacy, of the landscape in which the story is unfolding; Already the sun had left the valley to go climbing up the slopes of the Gablian Mountains, and the hill tops were rosy in the sun. I believe Steinbecks desired intentions of using this specific technique, is to reflect that all hope of the American dream has been lost, due to the death of Curleys wife. The sun is the light, which represents hope and happiness, and the fact it has left the valley represents the reality of the situation; that Lennie has ruined any chance they once had of fulfilling the dream. The use of the word already in particular, depicts the idea that all hope vanished as soon as Lennie killed her; there was no way he could have made amends. This would make the reader feel sympathy/pity for Lennie, as they have grown attached to his character throughout the book, and they know the death was unintentional. Also, embedded frequently throughout the book, is the use of structural motifs. In particular, the recurring element of the American Dream, and its dismal achievability, is used to signify the relationship between Lennie and George. It exemplifies one of the reasons why we find the two characters together; their differences are made apparent yet they both share and hold onto this strong sense of longing for this scenario, no matter how out of reach it is. Additionally, each time George repeats this dream to Lennie, his intonation and demeanor in which he says it, reflects its current state of achievability. For example, in chapter one, where Lennie and George have no job and no comfortable sanctuary, George is reluctant to finish describing the dream, I aint got time for no more, this hesitancy shows that he has obvious doubt in fulfilling it due to the current circumstances he and Lennie is in. However, in chapter 3, when Candy offers his savings into the purchasing of the house, George becomes excited as he believes the dream is now within reach. Steinbeck shows this through the use of short sentences and informal dialect, Jesus Christ! I bet we could swing her, because we relate excitement with uncontrollable language, colloquialism and the inability to produce sophisticated sentences, therefore it creates authenticity and pace for the reader, thus making it more believable. Lastly, in chapter 6, the dream is again repeated, back where the story first began. Yet now, the dream is fragmented, separated with the use of ellipses, Youan me. This punctuational technique symbolizes the loss and feebleness of the dream, as well as Georges despair of having to kill Lennie to save him from the oncoming lynch mob. Now, its no longer a chore for George; he wants to take it slow and let Lennie enjoy it fully before he dies, it truly reflects that George needs Lennie just as much as he needs him. Overall the reader would sympathize for both of them, because we can understand that George only did this for Lennies benefit, and despite their disputes; they cared about each other very much. The plot in Of Mice And Men is also an example of a circular narrative; it concludes in the same location, and George and Lennie are once again fleeing from trouble. This structure is used to offer a valuable moral about difficult the American Dream is to fulfill, as well as to reveal the sad absurdity of dreams in general. Overall this highlights Steinbecks pessimistic views towards the dream as he adapts his story to portray the dream to be impossible for all, Curleys wife included. However, on the other hand, Lennies death was inevitable because of the escalating destruction he was evoking, so others could interpret it as a blessing that Lennie died at the hands of a man he trusts, painlessly and still believing in his dream. So readers may believe Steinbeck wrote this to emphasize the beauty of friendships and highlight how important it is for mankind to uphold them.

A Career as a Physician :: Your Career as a Doctor

Doctors can pursue many career paths, including private practice, university-hospital work, or a job with a health maintenance organization. The first lets the physician be his own boss. The second offers him the opportunity to divide his work between treatment, research and instruction, in varying proportions. The third means he work for a large corporation, which provides him with patients and handles most of the administrative and business tasks that physicians in private practice have to handle on their own. Doctors can also work in inner-city clinics or in rural areas, where shortages of doctors exist. Doctors can be general practitioners or they can specialize in internal medicine, cardiology, endocrinology, neurology, oncology, sports medicine, or one of the many other specialties. Medicine is a very rewarding profession, but it is hard work. Doctors are often exhilarated when they know they have helped someone get well and devastated when they lose a patient. It is a job that can prey upon a physician physically and mentally. Since the average patient is not a doctor, physicians must not only be able to communicate difficult, often painful information to those in their care, but also they must learn how to interpret their patients' needs. They must relate to their patients as people and not reduce them to just the illness that needs to be treated. One element of this is collaborating with their patients to determine the best course of treatment for them as individuals. This requires patience, empathy, and compassion. "Compassion," said one doctor, "is absolutely necessary." In college, enroll in a pre-med program. Volunteer to work at a local hospital or with the emergency medical services. During the last year of college, apply for medical school and take the MCAT. The four-year program at medical school encompasses clinical work and book learning, with two years in the classroom and two in the clinical setting. Some of the usual courses are pathology, pharmacology, neuroanatomy, biochemistry, physiology, histology (the anatomy of tissues), and gross anatomy (cadaver class). Clinical study takes place at local hospitals or medical practices. Students are expected to offer diagnoses and suggest courses of treatment in real-life situations, although an MD/instructor makes the final decisions. In standard programs, students enter clinical clerkships in their third year and, in their fourth year, they can choose among various elective subspecialties.

Analysis of 1997 U.S. Macroeconomic Predictions :: essays papers

Analysis of 1997 U.S. Macroeconomic Predictions The U.S. economy ended 1996 at a blistering pace of 4.7% growth rate of real GDP in the fourth quarter. Despite this strong growth, the inflation rate remained relatively low in fact the CPI showed its lowest core growth rate in the last 34 years. This low inflation along with low unemployment finished off a very healthy year for the U.S. economy. These numbers seem to indicate a positive trend for the U.S. economy in 1997. Real GDP is expected to grow at a strong to moderate rate of 2.25%, with CPI rising around 3% and the unemployment rate between 5.25-5.5%. In order to see how these projections were arrived at it is most important to look at the factors that make up real GDP. Consumption, Investment, Government Spending, and Net Exports. When these factors are analyzed separately the overall picture of real GDP becomes clearer. The growth rate of real GDP is important because it tells us the rate that the economy is growing. Once the rate of growth is determined, we will be able to look at the predictions for interest rates, unemployment, and inflation, since all of these are heavily influenced by the growth rate of real GDP. Real GDP is the market value of all goods and services produced in a given year. It is the most important measure of growth in an economy. Since a dollar of production is equal to a dollar of income, real GDP not only gives an idea of production but also of the well being of the society in general. It is not enough simply for real GDP to rise, it must rise at a healthy rate (around 2.0%) each year in order for there to be enough jobs for new entrants into the labor force. If real GDP falls or fails to rise enough, unemployment will increase and the overall standard of living will fall. However, if real GDP rises too much inflation may occur which also lowers people’s standard living by eroding their purchasing power. In 1997, real GDP in the United States is expected to grow at an annual rate of around 2.25%. Growth is not expected to be as dramatic as the 4.7% rate of growth shown in the last quarter of 1996. But, overall the economy should show moderate to strong growth throughout the year.

How to Solve a Problem Essay

After reading up on the â€Å"Art of Thinking† e-book, chapter 5 explains the 4 stages of the critical thinking process. The first stage of critical thinking is to search for challenges. It explains that not all challenges are obvious and on how you should make it a habit to look out for challenges that comes your way. The second stage of critical thinking is expressing the problem or issue. The e-book explains in more detail the difference between a problem and an issue. The third stage of critical thinking is to investigate the problem or issue. Last but not least, the fourth stage of critical thinking is producing ideas. I think that this is also the critical stage of what makes a critical thinker. When I was in the Navy during my first year, I noticed that it was very difficult to advance in the occupational specialty that I was in compared to the other military occupation. One of the things that I’ve noticed was that the reason why the advancement was difficult was because there were too many people who were in the field rating. The air department field rating was a difficult and dangerous job to be in; especially if you didn’t know what you were doing. There was long 18 hour work days that I had to do whenever there were out to sea deployments to the Persian Gulf. I also had to worry about equipment malfunction and the risk of falling over board from the flight deck. I was very dissatisfied with working with the air department division, so I decided to take the exam for a different rate when I was up for advancement. I was curious to find out what other military occupations were out there for me with less danger on the field and better advancement opportunity. Fortunately for me, the advancement exam that I took was 100% advancement and 18 hours less than what I had to work compared to the air department. Based from my reading of chapter 7, the problem for me was working long hours in a hazardous environment. I asked myself, how can I get out of a hazardous work environment such as working on the flight deck? How can I advance myself to a rate that has less competition? There were also some issues for me that I had to address. One of the questions I had to ask myself regarding the issue was if I should notify my supervisor that I plan on taking the advancement exam for another rate? Is he going to single me out and make me work harder in the division? In order to resolve my problem, I decided to take the advancement exam that focused on operating the radar systems and it was 100% advancement. The working hours were 6 hours on and 18 hours off rotations at the work center. The work environment was also less hazardous and more relaxed compared to the air department. For my issues to get resolved, I decided not to tell any of my supervisors that I plan to leave the division by taking the exam for another rate. I figured that if I don’t tell them what I plan to doing, then they will not single me out or make me work harder compared to the other people in the division. I believe that it was the best decision that I made during my time in the military. Before I decided to take the advancement exam, I noticed that one of my co-workers had also taken the same exam before me. According to chapter 8 of the â€Å"Art of Thinking,† I investigated the problems and issues that relate to working with the operations department compared to working in the air department. I took an eyewitness testimony from my former co-worker who used to work for the air department division, but later switch to the operations department division after taking the advancement exam. He provided the information to me regarding the pros and cons of working with the operations department. The con part of working with operations was that you were working around a lot of high ranking officers and always had to practice for certain drills, but the pro side to it was good advancement and less work hours compared to working with the air department. In conclusion, I think that one of the best ways for me to solve this problem was to avoid going into the air department in the first place. I should have weighed out my options in regards to finding out what other good department divisions that I could benefit from by working with them for the 4 years that I was with the Navy. I noticed that some fields such as working as an electrician has its benefits. I could have been able to transfer all of my work experience into the civilian side and done a similar job like that with more salary pay. I also now understood that the person who recruited me into the Navy had a quote to me in order for him to keep his job as a recruiter, but I should have done a better job in regards to thinking things out more critically in regards to how I was going to benefit from joining the Navy besides getting the educational benefits after successfully completing my contract of serving my country.

Report on Inflation

EVOLUTION OF EXCHANGE RATE REGIME: IMPACT ON MACRO ECONOMY OF BANGLADESH by Liza Fahmida A project submitted in partial fulfillment of the requirements for the degree of Professional Master in Banking and Finance Examination Committee: Dr. Sundar Venkatesh (Chairperson) Dr. Juthathip Jongwanich Dr. Yuosre Badir Nationality: Bangladeshi Previous Degree: Master in Finance and Banking University of Dhaka Bangladesh Scholarship Donor: Bangladesh Bank Asian Institute of Technology School of Management Thailand May 2012 ACKNOWLEDGEMENT The dissertation paper entitled â€Å"Evolution Of Exchange Rate Regime: Impact On Macro Economy Of Bangladesh† has been prepared for the partial fulfillment of Professional master in Banking and Finance (PMBF) program conducted by School of Management, AIT, Thailand. I would like to offer my wholehearted gratitude and respect to a good number of people who offered encouragement, data and information, inspiration and assistance during the course of co nstructing this dissertation paper.It would be difficult to prepare the paper and to present it in a lucid manner within stipulated time without the help of my guide teacher Dr. Sundar Venkatesh, Adjunct Faculty, School of Management, Asian Institute of Technology, Thailand. His utmost care, constant support and meticulous supervision guided me through the process. I am indebted to Begum Sultana Razia, General Manager, Monetary Policy Department, Bangladesh Bank, whose sincere co-operation and valuable advice help me to prepare this paper.I would like to thank all of my colleagues and other employees of Foreign Exchange Policy Department and Monetary Policy Department, Bangladesh Bank for their assistance in this regard. I would like to thank all of fellow course mates who contributed through their comments and suggestions to prepare the report in a comprehensive manner. ii ABSTRACT Bangladesh had two different exchange rate regimes- a fixed exchange rate system from January 1972-Ma y 2003 and a floating exchange rate regime since June 2003. After adopting the floating exchange rate regime Bangladesh experienced positive impacts on macro economic development.The variables of the macroeconomic factors have been considered as foreign reserve, workers’ remittances and export proceeds to evaluate the impact of exchange rate over them in this paper. But the ongoing challenges for the country are the depreciating trend in local currency in a highly inflationary economy. The objective of the paper is to evaluate the macroeconomic performance over the regimes and to analyze present currency situation of Bangladesh. iii Table of Content NO. 01 Title page Acknowledgement Abstract Table of contents List of Figures List of Abbreviations Chapter-01 02 1. 1 Rationale 1. Scope 1. 3 Objectives of the study 1. 4 Methodology 1. 5 Limitations 1. 6 Organization 02 Chapter-02 Literature Review 03 Introduction 3. 1 Factors Affecting Exchange Rate 3. 2 Performance of previous and current FX-Regime in Bangladesh rate of GDP 3. 2. 1 Growth Unde 3. 2. 2 Current Account Balance 3. 2. 3 Inflation Situation 3. 3 Justification of Floating Exchange Rate 3. 4 The Transition from Fixed to Float 04 Chapter-04 Performance of Floating Exchange Rate System On Macro Economy of Bangladesh 4. 1 The Export On Macro Economy of Bangladesh Situation 4. 2 Enhancement of Workers Remittance 4. Reserve Position 4. 4 The Growth Rate of GDP 13 14 14 15 7 8 8 8 9 10 10 Chapter-03 Exchange Rate Evolution in Bangladesh 7 Introduction 1 1 1 2 2 2 3 3 SECTION Page I ii iii iv V vi iv 4. 5 Relationship among variables 05 Chapter 5 Preset Exchange Rate Situation Preset Exchange Rate Situation 5. 1 Exchange Rate Movement 5. 2 Reasons for Currency Depreciation 5. 2. 1 High Inflation 5. 2. 2 Low Foreign Direct Investment 5. 2. 3 Trade Deficit Chapter 6 06 Recommendation and Conclusion 6. 1. Control Inflation 6. 2. Reduce Trade Deficit 6. 3 Enhancing Foreign Direct Investment 6. 3 Effective Capital Market 6. Short Term Foreign Borrowings 6. 5 Effective Capital Market 6. 6 Derivatives Market 6. 7 Formation of Domestic FX Market 6. 8 Autonomy of the Central Bank 07 08 References Appendix Trade Deficit of Bangladesh Yearly Reserve Position Yearly data of Workers Remittance Yearly data of Inflation Yearly data of Export, Remittance, Reserve and Exchanger Rate Monthly data of Remittance and Exchange Rat Regression Analysis FDI In Bangladesh 16 17 17 17 18 18 19 21 21 21 21 21 21 21 22 22 22 23 24 25 26 27 28 29 30 31 v LIST OF FIGURES TITLE 3. 4 3. 5 4. 1 4. 2 4. 3 4. 4 5. 1 5. 2 5. 3 5. Exchange Rate Movement immediately after inception of Floating Comparison of month end Real Effective Exchange Rate The Export Volume in US$ The Workers Remittance The Foreign Reserve Position (REER) and Nominal Exchange Bangladesh GDP Growth Rate Rate between 2003-2004. Exchange Rate Movement Figure: Inflation Growth Rate of Foreign Direct Investment Trade Deficit of Bangladesh PAGE 11 11 13 14 15 16 17 18 19 20 vi LIST OF ABBREVIATIONS AD ADB BB FDI FPI FX FY GDP IMF LC Authorized Dealers Asian Development Bank Bangladesh Bank Foreign Direct Investment Foreign Portfolio Investment Foreign Exchange Financial YearGross Domestic Product International Monetary Fund Letter of Credit NEER OANDA REER USD Net Effective Exchange Rate Website of exchange rates information. Real Effective Exchange Rate Us Dollar vii Chapter 1 INTRODUCTION At the preamble of the Bangladesh Bank order, 1972, it is stated that â€Å"Whereas it is necessary to establish a central bank in Bangladesh to manage the monetary and credit system of Bangladesh with a view to stabilizing domestic monetary value and maintaining a competitive external par value of the Bangladesh Taka toward fostering growth and development of country’s productive resources in the national interest. To maintain a competitive external par value of the Bangladesh Taka, as per Foreign Exchange Regulation Act, 1947, Bangl adesh Bank as a central bank of the country, regulates the foreign exchange on behalf of the government 1. 1 Rationale: Exchange rate indicates the global position of economy of the country. The country’s economic development is closely related with it’s foreign exchange system. Foreign exchange rate is a vital component for the country’s economic activities too. Bangladesh has been experienced the floating exchange rate regime since May 2003 and passed a number of Pons and cons in the overall economy.Due to the utmost importance of the exchange rate in the economy, the study has been conducted in this area. 1. 2 Scope: This paper covers the comparison of the fixed and floating exchange regime of Bangladesh. The key factor of this paper is the evaluation of the impact of exchange rate on the fundamental macroeconomic indicators of the economy. Three main fundamental factors have been identified to measure their impact with exchange rate. Those are export, worker s remittance and foreign exchange reserve. The empirical data of 2000 to 2012 has been used to ustify the whole thing. To get an idea about the Bangladesh’s position, some neighboring country’s experience also been compared here. 1. 2 Objectives of the study 1. To evaluate the exchange rate regimes in Bangladesh economy: Fixed and Floating 2 To evaluate the floating arrangement's performance in three macro economic variables: Export, Workers Remittance and Foreign Reserve. 3 To understand the reason for currency depreciation 1 1. 4 Methodology To obtain the objectives of the study, secondary data have collected.The sources of data are Bangladesh Bank, Board of Investment, Export Promotion Bureau, Websites of IMF, ADB, OANDA and other related links. Statistical analysis correlation has been calculated to understand the exchange rate’s significance on the economic variables of Export, Workers Remittance and Foreign Reserve . 1. 5. Limitations There were some limit ations to conduct the study. Being, sensitive, new one, problems were faced to relate with various components and linking with them. And for its very nature, primary data was not available.Since the exchange rate regime is a vast area, it was also challenging to prepare this report within a limited time. 1. 6. Organization There are six chapters in this report. Chapter I is the introduction that divided into six sub sections. Literature Review is in Chapter 2. Exchange Rate Evaluation in Bangladesh has been covered in Chapter 3. Chapter 4 covers Performance of Floating Exchange Rate System On Macro Economy of Bangladesh. Present exchange rate situation is describing in Chapter 5. The last chapter covers recommendation and conclusion. 2Chapter 2 LITERATURE REVIEW The basic policy variables of country is foreign exchange rate that ensured trade, business, long term funding, foreign direct investment, inflation, foreign exchange reserve, inward remittance etc. Various economists opined that the policy of the exchange rate system had a crucial impact on 1990’s economic catastrophe. Nevertheless, it is yet to be proved either theoretically or empirically regarding the role of exchange rate on the indicators of macroeconomic variables. Whatever the case may be, different countries adopt different exchange rate policies.Bangladesh, the focus of this paper, had a fixed exchange rate system in place since January, 3 1972. After more than 31 years, the Central Bank of Bangladesh (Bangladesh Bank) changed it into a floating exchange rate system in June 2003. Bangladesh has been pursuing a floating exchange rate system since then. Dr. Mirza Azizul Islam, the former advisor, Ministry of Finance of the Caretaker Government of Bangladesh, presented a paper in January 2003, right before the shift from fixed to floating regime, explaining the overall performance of the fixed regime and the probable implications of the floating regime on Bangladesh economy.He suggested t hat the experiences of other countries in the region show that floating regime generates greater volatility in exchange rates and this sort of uncertainty is likely to affect adversely the overall trade and investment climate which is already afflicted by many unfavorable elements in Bangladesh (See Islam, 2003). Bangladesh pursued a ‘fixed exchange rate’ regime upto 1979. After that, from 1979 to mid-2003, it followed a managed floating exchange rate system.Repeated depression of the home money, for maintaining a steady real exchange rate as well as keeping away from overvaluation of the local taka, were the prime factors for taking new system of the foreign exchange system. From May, 2003, Bangladesh took almost a new policy known as ‘clean floating’ exchange rate policy by creating fully convertible current account. But capital account convertibility is not yet done. The main reasons for all the policies that Bangladesh took were due to improve export si tuation, decrease import liability with the aim of improving balance of trade.The evidences in favor of the above mentioned opinion have been placed below. Islam( 2003) told that the regulators of the monetary policy decides the exchange rate policy of the country in order to obtain two basic goals. The first one is â€Å"domestic target† that covers preventing inflation rate of inflation, the growth of credit both in Government and Private levels, and also the growth in liquidity and M2. The second reason is â€Å"external target† which considers foreign exchange reserve hike, declining current account balance, prevent exchange rate volatility in the country’s nterbank foreign exchange market as well as balance the exchange rate flow with neighboring countries like India, Bhutan, Sri Lanka, Pakistan etc. Hossain (2005) referreing Rahman and Bayes that Bangladesh took floating exchange rate system due to: (i) global competitiveness; (ii) improve export dimension s ;(iii) eliminate subsidy from export; (iv) reduce import pressure; (v) increase the substitutes products for export. Aziz (2003) showed that according to the statements of the finance ministers for 3 ast decades, the prime causes of devaluation of taka in our country (i) rise in export;(ii) reduce import;(iii) improve local newborn industries; (iv) promote the inward remittances trough pursue wage earners, and (v) increase foreign exchange reserve. As per the â€Å"Financial Sector Review(2006)’ of the central bank of the country, the major reasons of exchange rate policy covers: (i) export promotion; (ii) encourage inward remittances;(iii) keeping the price level stable, and (iv) preserve a variable account situation externally.As a result, all the publications and write-ups have illustrated both directly or indirectly the export-growth and import reduction as the key reasons of the exchange rate policy of the country. Prior to adopting floating exchange rate regime, Isla m (2003) argued that the economic and institutional prerequisites of a floating exchange rate regime are not met in Bangladesh. Some recent studies have tried to explain the behavior of nominal exchange rates of Bangladesh after its transition to the floating rate regime.By doing a correlation analysis, Rahman and Barua (2006) explore the possible explanation of the exchange rate movement. They found that there is a strong correlation (-0. 40) between depreciation and export-import gap as a share of reserves; L/C openings for imports also have a positive correlation (0. 45) with volatility of the exchange rate, which implies that the higher the L/C openings the more volatile is the exchange rate.They conclude that high seasonal demand for foreign currency because of increased import bills, systematic withdrawal of excess liquidity by Bangladesh Bank, relatively faster expansion of credit and higher interest rates on various national savings instruments are the reasons behind the int erest rate hike in the money market and depreciation of the nominal exchange rate. William Miles, 2006 discussed about the effect of exchange rate system (both fixed and floating) on the long term growth in the economy.The effect of fixed rate, pegged rate and floating rate has been discussed here briefly on the basis of several literature reviews and the finding is that fixed and intermediate regimes have a clear, significantly negative impact on growth (holds only for emerging markets not for industrial nations. ) In this paper, the author has given an approach to determine if exchange rate regime itself truly extracts an independent effect on growth.Results here indicate that the effect of fixed exchange rates on growth in emerging markets is not direct, but rather contingent on the existence of macroeconomic imbalances and other distortions in place in the domestic economy. These results seem to conform more closely with exchange rate theory, which posits mostly positive, and fe w negative channels for pegged currencies to impact growth over the long run. Asad Karim Khan, June 2009 examines whether the floating exchange rate regime has any impact on the value of Bangladesh taka i,e does it make any lose on the value of the currency.He shows that regime change has no statistically significant impact on the value of Bangladesh currency once foreign exchange reserve is incorporated in the regression model. Younus and Chowdhury (2006) made an attempt to analyse Bangladesh's transition to floating regime and its impact on macroeconomic variables. They find that output growth in Bangladesh performed well in the intermediate and floating exchange rate regimes. Inflation is lower in the intermediate regime despite higher money supply and exchange rate depreciation. They also find that currency depreciation boosted export growth in the floating regime.Chowdhury and Siddique (2006) have analysed the exchange rate pass through to domestic inflation in Bangladesh. 4 Th e experiences of some countries in the region which implemented major changes in their exchange rate regimes in recent years can provide useful lessons for Bangladesh. I have tried to focus the comparison among different economic indicators between Bangladesh and some of the South Asian Countries (Afghanistan, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka) all of which adopted independently floating exchange rate regimes.Trade and financial policy measures are very important for the country’s economy and out of that consideration, Bangladesh has taken a new exchange rate policy according to the obligations of IMF (article number: VIII), as on 24th March,1994 introducing current account fully convertible. At the same time, Bangladesh was under pressure since it is the member of IMF. As a result, Bangladesh took floating exchange rate system in current account on 31st May, 2003. After that, IMF agreed Poverty Reduction and Growth Facility (PRGF) for our country with a new exchange rate system i,e, floating exchange rate system.However, Younus et al (2006) showed that free floating exchange rate system can arrange the prevention of overvaluation of local currency as it might make the export unattractive in the international world as well as alternative items of importable goods became difficult to bit with import goods. He illustrated that the prime goal of free floating system of exchange rate is supposed to avoid the main misalignment of exchange rate, specially, to stop unpredictable appreciation of real rate of exchange that might affect the demand of the total export of the country.The illustrations also included the encouragement of the export situation and decline the shortfall of the current account, control inflationary situation, and increase the position of inward remittances. Since the independence of the country, Bangladesh is following an dynamic exchange rate system that has been replicated in the nominal exchange rate that were de clared by the central bank of the country time to time. Islam (2003) stated 89 modifications in the exchange rate of Bangladesh currency with USdollar since 1983 and among them, 83 were depression.Aziz (2003) illustrated 41 depreciation in nine years (1991-2000). Younus et al (2006) showed that 130 times depreciation took place between 1972 to 2002 in Bangladesh Taka that also reduce balance of payment deficit. So, this paper, correctly identifies the exchange rate as the main important thing for economic changes of the country. After independence, Bangladesh fixed its Taka’s value with British Pound Sterling on 3rd 1972. Since 1972 to 1990 the Taka was overvalued. So there was a huge deficit in Balance of payment that hurt the economy badly.From 1990 the gap began to narrow down. The exchange rate regime worked quite well in terms of balance of payment, inflation, export and remittance. So there were some debate about incipience of this floating and criticism also rose about competence and preparation of Bangladesh Bank. But Bangladesh Bank performed well in managing the ‘new born’. But there is some volatility in the market in recent past. Bangladesh Bank, as a central bank of the country intervened prudently to curve the volatility and market became stable though Taka remains undervalued.The experiences of South East and South Asian countries showed that they had to intervene in the market for smooth moving. The experience supports the Mr. Kindleberger beliefs that â€Å"market work well on the whole† but occasionally â€Å"will be overwhelmed and 5 need help† from a lender of the last resort. (The Economist, July 19th 2003). So the regulator should be watchful about the market’s behavior and intervene when needed without hesitations. In the developing country these kind of intervention should be proactive rather than reactive.Naeem and Rasheed analyzed another important issue of whether stock prices and exchange rat es are related or not has received considerable attention after the East Asian crises. They said that during the crises the countries affected saw turmoil in both currency and stock markets. If stock prices and exchange rates are related and the causation runs from exchange rates to stock prices then crises in the stock markets can be prevented by controlling the exchange rates. Moreover, developing countries can exploit such a link to attract/stimulate foreign portfolio investment in their own countries.Similarly, if the causation runs from stock prices to exchange rates then authorities can focus on domestic economic policies to stabilize the stock market. If the two markets/prices are related then investors can use this information to predict the behavior of one market using the information on other market. They also claimed that most of the empirical literature that has examined the stock prices-exchange rate relationship has focused on examining this relationship for the develo ped countries with very little attention on the developing countries.This paper will assess whether the exchange rate regime change indeed has created any significant impact on the economy of the nation as well as the comparative analysis with the neighboring countries situation. There are some potentialities as well as difficulties in market based system, so in this study there are some recommendations for the regulator and for the market players. To manage the floating exchange rate, full automation as well as transparency is essential in banking sector. As the capital account of our economy is not convertible there is little scope of capital flight.If the inception of floating exchange rate is the beginning to liberalize capital account immediately that won’t be a wise decision. 6 Chapter 3 Exchange Rate Evolution in Bangladesh Introduction: The world economy experienced some sort of fixed and flexible exchange rate. Before 1875 there was Bimetalism of exchange rate and th en the Gold Standard (1875-1914). During Interwar period (1914-1944) the classical Gold Standard broken down and in July 1944 representatives of 44 countries succeeded to establish the ‘Bretton Woods’ system.Again the oil shock in the early 1970s and the dampen of demand broken down this system and world economy shifted to flexible exchange rate. Bangladesh has been experienced two major exchange rate regimes since the country’s Independence from 16th December1971. A Fixed Exchange Rate Regime from 1972 to 1979 and a Floating Exchange Rate Regime since May 2003. Among the time frame from 1971 to 2003, there were different exchange rate arrangements in terms of the currency mechanism, like: Pegged to Pound Sterling (? :1972-1979;Pegged to a basket of major trading partners’ currencies(? as the intervening currencies):1980-1982;Pegged to a basket of major trading partners’ currencies(US$ as the intervening currencies):19831999;Adjusted Pegged System:2 000-2003;Floatig Exchange Rate System: May 30, 2003Present. All the policies of exchange rate system Bangladesh implemented, with the objectives of accelerating exports, reducing import pressure and improve the balance of trade. After independence, Bangladesh fixed its Taka’s value with British Pound Sterling on 3rd 1972.Since 1972 to 1990 the Taka was overvalued. So there was a huge deficit in Balance of payment that hurt the economy badly. From 1990 the gap began to narrow down. The exchange rate regime worked quite well in terms of balance of payment, inflation, export and remittance. 3. 1 Factors Affecting Exchange Rate: Under Floating Exchange Rate Arrangements Exchange Rate is primarily determined by demand for foreign currency and Supply of foreign currency where demand and supply of foreign currency is also affected by some other sensitive factors.According to Jeff. Madura, (International Financial Management) theoretically demand for foreign currency is determined by several factors like, import payments, service payments which includes income payments, debt service payments, foreign investment (outward) and foreign investment (outward). The supply of foreign currency is composed of export Receipt, service receipts which includes income receipts, debt service receipts, foreign aid (inward) and foreign Investment (inward).Besides those some other factors affect the exchange rate movements. The factors are a)Purchasing Power parity; b)Interest rate parity; c) Relative income differential; d)Government Control; e)Expectations etc. 7 3. 2 Performance of previous and current FX-Regime in Bangladesh To evaluate the performance of Bangladesh considering the two different exchange rate regimes, some data comparison have been made among three neighboring countries in South Asia. Those are India, Pakistan and Sri Lanka. 3. 2. Growth rate of GDP Comparing the percentage of growth rate with major neighboring Countries, the following table shows that Bangla desh was more or less in a similar situation before the adoption of floating exchange rate regime. Since 2003 with the new floating exchange rate system, there is also a positive trend of the GDP growth rate except 2009-2010. The global recession affect the overall growth of the country at that time. Table 3. 1: Growth rate of GDP (% per year) Y Country Banglades h India Pakistan Sri Lanka 2001 5. 3 5. 8 1. 8 -1. 5 2002 4. 4 4. 0 3. 1 4. 0 2003 5. 3 8. 2 5. 1 5. 9 2004 5. 7 7. 4 5. 5 5. E 2005 A 2006 R 200 7 6. 4 9. 2 6. 8 6. 8 6. 0 6. 6 7. 6 9. 7 5. 8 5. 8 5. 5 7. 7 200 8 6. 2 6. 7 3. 7 6. 0 200 9 5. 7 8. 0 1. 2 3. 5 2010 5. 8 8. 6 4. 1 7. 6 2011 6. 3 8. 2 2. 5 8. 0 Source: Asian Development Outlook-2004 and 2011, ADB 3. 2. 2 Current Account Balance In comparison to other major South Asian countries, the table no. -2 shows that Bangladesh's achievement in terms of containing current account balance is better after the adoption of floating exchange rate regime (since 2003). It has d one consistently better than some of the neighboring countries like Sri Lanka, Pakistan, and India in all recent years excepting 2005.Table No. 3. 2 Current Account Balance as Percentages of GDP Y 2003 0. 5 0. 7 5. 9 -2. 2 E 2004 0. 0 0. 3 3. 0 -3. 0 A 2006 1. 3 -1. 2 -3. 9 -5. 3 R 2007 1. 4 -1. 4 -4. 8 -4. 3 Country Banglades h India Pakistan Sri Lanka 1999 -1. 5 -1. 1 -3. 0 -3. 6 2000 -1. 1 -0. 8 -0. 4 -6. 4 2001 -2. 3 0. 2 0. 6 -1. 5 2002 0. 4 0. 8 4. 6 -1. 8 2005 -1. 5 0. 3 2. 1 -3. 5 2008 0. 9 -2. 4 -8. 5 -9. 5 2009 2010 2. 7 3. 7 -2. 8 -5. 7 -0. 5 -3. 0 -2. 2 -3. 8 2011 0. 2 -3. 5 -1. 7 -4. 0 Source: Asian Development Outlook-2011, ADB 8 3. 2. Inflation Situation Exchange rate regime and inflation are relevant because a change in the exchange rate is almost certain to cause a change in the domestic price of tradable and indirectly the price of non-tradable also. The international competitiveness of the economy is badly eroded by inflation. It generally encourages capital fligh t, exacerbates income distribution, gives rise to inequities in income distribution and aggravates poverty. The relevant data are presented in the following table no. -3. Table 3. 3: Inflation in Bangladesh and Selected South Asian Countries Y 2002 200 3 2. 8 4. 4 3. 4 3. 5 10. 2 5. 3 3. 1 2. 6 E 200 4 4. 5. 0 4. 0 A 2005 5. 2 5. 0 6. 2 2006 7. 2 5. 2 7. 9 10. 0 R 200 7 7. 2 5. 0 7. 8 15. 8 Country Banglades h India Pakistan Sri Lanka 1999 8. 9 3. 3 5. 7 5. 9 2000 3. 4 7. 2 3. 6 1. 2 2001 1. 6 4. 7 4. 4 11. 0 200 8 9. 9 8. 7 12. 0 22. 6 200 9 6. 7 2. 1 20. 8 3. 4 2010 7. 3 9. 2 11. 7 5. 9 2011 8. 0 7. 8 16. 0 8. 0 Source: Asian Development Outlook-2011, ADB It is showing that there is an increasing trend of inflation since the adaptation of floating exchange rate regime. Data on inflation rates represent period averages. Except for India, which reports the wholesale price index, inflation rates presented are based on consumer price indexes.The higher inflationary situation take plac e due oil and food price hike in the international market as well as several natural disaster like, Sidor, flood etc. 3. 3 Justification of Floating Exchange Rate: From the above mentioned data analysis, it can be said the previous regime performed quite well in certain criteria. The major reasons behind the adoption of new exchange rate system is mainly the government’s commitment to the liberalization of the country’s economy and to take the appropriate steps to create suitable environment of the economy for entering into capital account convertibility regime.Rather than this, there was IMF's ‘conditionalities' to enter into new floating exchange rate regime. 3. 4 The Transition from Fixed to Float: To meet up the economic demand and to fulfill the IMF conditionality, on 29 May, 2003 Bangladesh Bank issued a circular stating- effective from 31st May, 2003, Bangladesh Bank floated its exchange rate and followed a fully market based exchange rate for Taka. Under this arrangement, exchange rate is determined on the basis of demand and supply of the respective currencies.Immediately after the inception of floating exchange rate banks, economists, currency traders and businessmen have welcomed the deregulation of the exchange rate saying that 9 the country's foreign trade and remittance would get a boast up due to it and it would make the currency market more efficient and effective. Since the introduction there is no unusual raise of exchange rate till mid 2004. Most of the time Taka maintains appreciating position during this period and Bangladesh Bank show a tremendous performance managing the ‘new born' exchange rate system.During mid 2004, Taka faced significant volatility against USD and it continued up to August 2004. After that period, the volatility of exchange rate of Taka against USD eased but resulting to appreciated USD till mid January 2005. In recent times, Taka has depreciated significantly against USD in the inter-bank m arket. This has happened as because of price hike in oil price and scrap vessel in the international market created a surge on import settlements. Figure3. 4: Exchange Rate Movement immediately after inception of Floating Exchange Rate Movment 58. 7 58. 65 58. 6 58. 55 58. 5 58. 45 58. 4 58. 35 58. 3 58. 25 58. Exchange Rate TK/$ Jun'-01 Jun'-04 Jun'-08 Jun'-11 Jun'-15 Jun'-18 Jun'-22 Jun'-25 Jun'-29 July'-03 July'-07 July'-10 July'-14 July'-17 July'-21 July'-24 July'-28 Banking days Source: Bangladesh Bank Unpublished Data Behavior of Real Effective Exchange Rate (REER) and Nominal Exchange Rate: REER is considered as a guiding FX-rate to the policy maker as well as the market participants and it also shows the international competitiveness of countries goods and services. The policy makers are always tried to keep the Nominal Exchange Rate near to the REER. Before 1990 Taka was overvalued (see table no-01,02 and 03. that distorted our international competitiveness and that was the causes of prolonged Balance of Payment crisis. Figure3. 5: Comparison of month end Real Effective Exchange Rate (REER) and Nominal Exchange Rate between 2003-2004. 10 July'-31 62. 00 61. 00 60. 00 Behavior of REER and Nominal FX-Rate Rate TK/$ 59. 00 58. 00 57. 00 56. 00 55. 00 54. 00 REER-2003 53. 00 Nominal TK/$-2003 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec REER-2004 Nominal TK/$-2004 Months Source: Bangladesh Bank Unpublished Data After 1990, Taka remained undervalued. The gap between Nominal Exchange Rate and REER were widened over the period.Before inception of floating exchange rate Taka was almost running on a free float for the last 12-15 month as rates were decided according to demand-supply situation and liquidity in market. Bangladesh Bank was also not virtually selling any dollar that time. This means the market has already factored in floating exchange rate. Moreover, before inception Bangladesh Bank took some measures for strengthening regulation, such as, keep ing close observation of Authorized Dealer’s (AD’s) daily activities; especially on ‘Open Position’, gave pressure for reconciliation of NOSTRO account balance, encourage every bank to set up dealing room and ressurized to make payment in due time etc. So we can obviously say that way to the floating exchange rate was prepared. 11 Chapter 4 Performance of Floating Exchange Rate System On Macro Economy of Bangladesh Introduction of floating exchange rate was debatable issue and also there were some criticisms about the competence of Bangladesh Bank's from some corner. But Bangladesh Bank performed a tremendous performance. There was no volatility; no speculation in price and market behaves rationally. If we consider the market statistics, we find that macro economic variables have positive performances over the period of time.Three major variables have been considered for evaluating the impact of exchange rate with them. The variables are Export, Workers Re mittances and Foreign reserve. 4. 1 The Export Situation: The export trend from 1998 to 2011 shows an increasing trend. It is shown here that there is upward trend of export after 2003,i. e, after adopting the floating exchange rate regime, the export has a robust growth in the economy. Figure:4. 1: The Export Volume in US$ Source: Bangladesh Bank Quarterly, January-March 2011 During the global recession, the export trend of Bangladesh was not that much affected mostly for the RMG sector.In the FY 09 and FY 10, the export volume increased significantly. 4. 2 Enhancement of Workers Remittance: The Inward remittances from Bangladeshi nationals working abroad remained strong in FY10 even in the face of global economic slowdown and continued to play an important role in strengthening the current account. Receipts on this sector increased by 13. 4 percent to USD 10987. 40 million in FY10 from USD 9689. 26 million in FY09. The underlying reason was that Bangladesh Bank has simplified the approval policy of drawing arrangements between foreign exchange houses and domestic banks.As a result, 40 banks 12 have been allowed for establishing 885 drawing arrangements with 300 exchange houses all over the world for collecting remittances, (of which approximately 650 drawing arrangements with 250 exchange houses are operative now). Figure-4. 2: The Workers Remittance Source: Bangladesh Bank Quarterly, January-March 2011 Considering the growth rate of workers’ remittances, it has been observed that the rate is quite higher after the free floating exchange rate regime that is 20. 52 % (2003-2010) than that of fixed exchange rate regime of Bangladesh which is calculated as 11. 9% (19932002). The increasing amount of workers remittance helps to balance the trade deficit in a prudent manner. 4. 3 Reserve Position: The amount of foreign exchange reserve has been increased significantly over the last couple of years. During the FY 2003 to FY 2005, the trend was quite steady and flat. But, it has an upward trend after FY 2007. The main sources of foreign reserve are workers remittance, foreign loans and grants and exports. 13 Figure-4. 3: The Foreign Reserve Position Period Reserves($) 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 469. 6 2705 2930 3483. 8 5077. 2 6148. 8 7470. 9 10749. 7 10911. 6 Source: Bangladesh Bank Quarterly, January-March 2011 After the inception of floating exchange rate regime, the foreign exchange reserve boosted up due to huge amount of workers remittance and increasing trend of export. 4. 4 The Growth Rate of GDP: The GDP growth rate reaches upto 6. 7% during FY 11. From 1994 to 2010, the average growth rate of GDP was 5. 47% reaching at high of 6. 63% in June 2006. The record low rate was 4. 08% during June 2004. For the last couple of years the growth rate was 5% above and Bangladesh is onsidered as a developing country. Figure-4. 4: Bangladesh GDP Growth Rate Source: Bangladesh Bureau of Statistics,2011 14 4. 5 The relationship among the variables: The relationship between the exchange rate and three variables i,e, export, remittance and reserve reflects quite positive in correlation. The correlation has been computed considering the data from 2002-2011. Correlation Exchange Rate Export 0. 928315219 Remittance 0. 859373146 Reserve 0. 825444493 One regression analysis has been done with workers remittance and exchange rate.The purpose of the quantitative analysis is to identify if there is any relationship between exchange rate and workers remittance of Bangladesh. The monthly data of workers remittance from the financial year 2007-2008 to financial year 2011-2012 has been taken for the calculation. The regression model, exchange rate is independent variable and remittance is dependent variable. The regression model is: Y=66. 15+. 010385 remittance The value of R square is . 37 which means that the regression model explains 37% variation in exchange rate. T he coefficient is very low which is and P value is quite high that is 3. 74.So, the remittance does not show any significant impact on foreign exchange rate. 15 Chapter 5 Exchange Rate Situation 5. 1 Exchange Rate Movement: In the recent Taka depreciates against US$ drastically: Over the period, July 2010-January 2012, from Tk 70 to Tk 86 — a depressing 23% fall down. Figure-5. 1: Exchange Rate Movement Source: Website OANDA The sharp fall of taka against US dollar continues for last couple of months. US dollar has been weakening against many other strong currencies like Euro, SF, Yen and GBP but getting stronger against Bangladesh Taka. Exchange rate depreciation creates the economy in a challenging situation.Continuous depreciating tendency higher the inflation rate that ultimately increase the trade deficit. The ongoing depreciation of Bangladeshi taka is becoming the challenge for the central bank as well as the Government. The increasing trend of the trade deficit (figur e: 7) also shows the possibility of the shortage of supply of the foreign currency i,e, US$ in the market. 5. 2 Reasons for Currency Depreciation: The reasons behind the currency depreciation are influenced by economic fundamental, exchange rate regime and Trading rules. There is a slow trend of capital inflow in the country for the last couple of years.The main reasons for that are low tendency of foreign direct investment and increasing trend of trade deficit. 16 5. 2. 1 High Inflation: Inflation is appearing as a major threat in the economy in the recent past. Inflation had a moderate trend upto 2003 within 6%. It started increasing from 2004 and got sharp rise in 2008-2009 and the increasing trend is still continuing. The main cause of high inflation in Bangladesh is oil and food price hike in abroad. Figure 5. 2: Inflation Source: Monthly Economic Trend-Bangladesh Bank, January 2012 The high level of inflation in the economy leads to lower the value of local currency taka.To co ver the deficit budget, Government borrowings from the Central Bank (BB) and overall money supply increased leads to high inflation in the market. 5. 2. 2 Low Foreign Direct Investment: The growth rate of foreign direct investment is showing a declining trend. The data has been used from 1996 to 2011. After 1998 and so on, the trend started to decline sharply. It increased a little bit during 2004-2005 but again has a very declining trend. 17 Figure-5. 3: Growth Rate of Foreign Direct Investment Source: Monthly Economic Trend-Bangladesh Bank, January 2012 In the recent past, the FDI growth rate is severely low.So, proper steps are supposed to be taken by the government authority. 5. 2. 3 Trade Deficit: Though the export volume has an increasing trend since the inception of floating exchange rate regime, there is huge amount of trade deficit with an increasing trend. 18 Figure: 5. 4 Trade Deficit of Bangladesh Source: Monthly Economic Trend-Bangladesh Bank , January 2012 The amount o f import has been increased sharply after 2006-2007. The gap between export and import becomes huge during the last financial year 2010-2011. Due to huge import payment, government debt has increased significantly in the country and demand for foreign currency increased. 9 Chapter 6 Recommendations and Conclusion Considering the above mentioned discussions, some recommendations have been formulated in order to bring stability in the foreign exchange market in the short run and long run for the Government and Bangladesh Bank i,e, the central bank of the country. Those are discussing as follows: 6. 1. Control Inflation: Effective measures are needed to be taken by the central bank to control inflation by reducing money supply in the economy. The formulation of the tighten monetary policy by the central bank is an important factor for controlling inflation.But the deficit budget of the Government creates huge Government Debt and prolong inflationary atmosphere. The related factors for reducing deficit budget 6. 2. Reduce Trade Deficit: One of the important components to reduce the trade deficit is to enhance export volume of goods and services. Bangladesh is a import depended country. The main importable items are petroleum and food. Local industrialization is utmost important specially in the food sector (substitute food items production) and other exportable items to reduce huge liability of the Government. 6. 3 Enhancing Foreign DirectInvestment: Sufficient inflow of foreign direct investment could enhance the capital inflow in the country for long term. Bangladesh Government has specific policy for inviting FDI. Ensuring good governance, Infrastructural development, Utility, political stability will help to promote more investment from abroad in the country. 6. 4 Short Term Foreign Borrowings: Borrowings from abroad is another option for supplying liquidity in the market. But the problem of short-term borrowing is that the country may fall into â€Å"Debt-tr ap† due to be unable to pay the money on time.Once the foreign currency injects in the market, it is difficult to recollect form the market as well. The Central Bank of Philippines in early 1990 can be remembered here. Due to short-term borrowing to meet the local market demand, got huge foreign liability. Continuous losses eroded it’s capital base and made it bankrupt in 1993. It took 25 years to reestablish the new central bank in that country. So, Instead of foreign borrowings, Concessionary loans at a low interest rate from World Bank and ADB and other bilateral donors might be a better option to meet the ongoing gap in the market. . 5 Effective Capital Market: The capital market development is utmost important in order to bring the steady situation in FX market. Ensuring enough flow of Foreign Portfolio Investment (FPI), good governance and security in the capital market is time demand. 6. 6 Derivatives Market: Introduction of various derivative products as options , currency swap, interest cap, interest swap, futures, forwards etc, as well as ensuring huge portfolio investment might bring the positive impact in the exchange rate market. 20 6. Formation of Domestic FX Market: A formal forex market forum should be created, with the participation of independent professional bodies and with representation from the dealers association, Bangladesh Bank and other relevant government officials. This forum would provide the logistic support and platform for the forex market. Ideally, this forum would develop a secured web-based market to which only the members or participating organizations would have access. From this website, all the logistic support required for completing the forex dealings among the members/participating organizations could be provided. 6. Autonomy of the Central Bank: The autonomy of the central bank is desirable issue for the economy. The central bank should operate and perform independently with full automation. Conclusion: Th is study shows that floating exchange rate regime has constructive effect on economic growth. The transition period from Fixed rate regime to Floating rate regime was quite smooth and stable. There is significant growth in the fundamental economic variables on the long path of the new exchange rate regime. The trend of export, workers’ remittances and foreign reserves have been analyzed and found considerable growth on these variables.Nevertheless, the ongoing exchange rate depreciation along with high inflation is becoming a challenging issue for the regulators and Government as well. The gap between demand and supply of foreign currency in the market is getting bigger in the high inflationary economy which lead continuous loses in the value of the local currency. The key reasons have been found for the currency depreciation are inflation, government debt, trade deficit, low FDI etc. The study recommended some issues for Government’s and Central’s bank’s part. The regulation should be proactive rather than reactive.There are some potentialities in this new regime; to reap this potentiality, Government as well as regulators should take effective steps. 21 REFERENCES Asian Development Bank. 2011. Asian Development Outlook 2010 Update. Asian Development Bank. 2006. Asian Development Outlook 2005, ADB: Manila, Philippines. Asian Development Bank. Manila,Philippines. 2005. Asian Development Outlook 2005, ADB: Asad Karim Khan Priyo, June 2009,Impact of the Exchange Rate Regime Change on the Value of Bangladesh Currency. 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Younus, S. and Chowdhury, M. I. , (December 2006), An Analysis of Bangladesh’s Transition to Flexible Exchange Rate Regime, Working Paper Series. 22 APPENDIX I Trade Deficit of Bangladesh Export Import Year (in million USD) (in million USD) 1994-95 3472. 5250. 6 1995-96 3882. 4 6237. 9 1996-97 4418. 3 6436. 8 1997-98 5161. 2 6768. 0 1998-99 5312. 8 7205. 4 1999-00 5752. 2 7536. 6 2000-01 6467. 3 840 1. 5 2001-02 5986. 1 7686. 0 2002-03 6548. 4 8691. 8 2003-04 7603. 0 9812. 9 2004-05 8654. 5 11832. 1 2005-06 10526. 2 13271. 7 2006-07 12177. 9 15441. 0 2007-08 14110. 8 19481. 4 2008-09 15565. 2 20291. 4 2009-10 16204. 7 21388. 2 2010-11 22928. 2 32398. 4 Source: Monthly Economic Trend-Bangladesh Bank , January 2012 Trade Deficit (in million USD) -1778. 1 -2355. 5 -2018. 5 -1606. 8 -1892. 6 -1784. 4 -1934. 2 -1699. 9 -2143. 4 -2209. 9 -3177. 6 -2745. 5 -3263. 1 -5370. -4726. 2 -5183. 5 -9470. 2 23 Yearly Reserve Position In million USD Reserves($) Period 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 Source: Monthly Economic TrendBangladesh Bank , January 2012 2469. 6 2705 2930 3483. 8 5077. 2 6148. 8 7470. 9 10749. 7 10911. 6 24 Yearly data of Workers Remittance: Remittances Year/Month 2011-2012* 2010-2011 2009-2010 2008-2009 2007-2008 2006-2007 2005-2006 2004-2005 2003-2004 2002-2003 2001-2002 2000-2001 1999-2000 1998-1999 1997-1998 199 6-1997 1995-1996 1994-1995 1993-1994 1992-1993 In million In million US dollar Taka Growth Rate 2117. 7 11650. 32 10987. 4 9689. 26 7914. 78 5998. 47 4802. 41 3848. 29 3371. 97 3061. 97 2501. 13 1882. 1 1949. 32 1705. 74 1525. 43 1475. 42 1217. 06 1197. 63 1088. 72 944. 57 157668. 7 829928. 9 760109. 59 666758. 5 542951. 4 412985. 29 322756. 8 236469. 7 198698 177288. 2 143770. 3 101700. 1 98070. 3 81977. 8 69346 63000. 4 49704 48144. 7 43549 36970. 4 Average Rate Growth 13. 39772078 22. 41982721 31. 94664639 24. 90541207 24. 79334977 14. 12586707 10. 12420109 22. 42346459 32. 8903884 -3. 448382 14. 28001923 11. 82027363 3. 389543316 21. 22820568 1. 622370849 10. 00349034 15. 2609 20. 51706112 11. 89409131Source : Foreign Exchange Policy Department, Bangladesh Bank Bangladesh Bank Annual Report 2009-2010 Growth rate is self calculated 25 Yearly data of Inflation Year 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Point to Point 1. 66 3. 58 5. 03 5. 64 7. 35 7. 54 9. 2 10. 04 2. 25 8. 7 10. 17 11. 59 12 months average 1. 94 2. 79 4. 38 5. 83 6. 48 7. 16 7. 2 9. 94 6. 66 7. 31 8. 8 10. 91 Source: Monthly Economic Trend-Bangladesh Bank , January 2012 26 Yearly data of Export, Remittance, Reserve and Exchanger Rate (In million USD) Workers Year FX Rate Export Remittance in mil US$ (in mil US$) 62. 691 2501. 13 FY02 5985. 89 63. 2216 3061. 97 FY03 6548. 54 64. 0869 3371. 97 FY04 7602. 99 68. 0508 3848. 29 FY05 8654. 52 73. 9865 4802. 41 FY06 10526. 16 74. 1681 5998. 47 FY07 12177. 86 73. 4636 7914. 78 FY08 12685. 4 73. 8228 9689. 26 FY09 14170. 7 74. 5518 10987. 4 FY10 14763. 8 79. 1877 11650. 32 FY11 20313. 8 Source: Monthly Economic Trend-Bangladesh Bank , January 2012 Reserve (in mil US$) 1582. 9 2469. 6 2705 2930 3483. 8 5077. 2 6148. 8 7470. 9 10749. 7 10911. 6 27 Monthly data of Remittance and Exchange Rate Year Month Remittance ( In million USD) Ex rate (average) Year Month Remittance ( In million USD) Ex rate (average) 007-08 2008-09 2009-10 July August September October November December January February March April May June July August September October November December January February March April May June February March April May June July August September October November December January February March April May June 567. 11 470. 95 590. 67 559. 05 617. 39 635. 34 710. 74 689. 26 808. 72 781. 71 730. 26 753. 58 820. 71 721. 92 794. 18 648. 51 761. 38 758. 03 859 784. 47 885. 67 840. 99 895. 3 850. 5 784. 47 885. 67 840. 99 895. 3 850. 5 885. 38 935. 15 887. 57 900. 70 1050. 4 873. 86 952. 39 827. 96 956. 49 922. 16 903. 05 892. 15 73. 6518 73. 4389 73. 5663 73. 3004 73. 2946 73. 473 73. 4672 73. 4063 73. 2738 73. 4847 73. 2841 73. 3473 73. 38 73. 4947 73. 2884 73. 6468 73. 7971 73. 691 73. 7961 73. 8126 73. 8073 74. 1052 73. 9459 73. 9413 73. 8126 73. 8073 74. 1052 73. 9459 73. 9413 73. 9214 73. 6394 73. 7567 73. 7551 73. 5378 73. 8549 73. 8181 73. 9592 74. 2051 74. 0648 74. 4125 74. 6026 2010-11 2011-12 July August September October November December January February March April May June July August September October November December 57. 31 963. 92 837. 71 923. 85 998. 64 969. 10 970. 54 986. 97 1102. 98 1001. 97 998. 42 1038. 91 1015. 58 1101. 79 855. 44 1039. 48 908. 79 1147. 22 74. 5447 74. 4778 74. 5078 75. 0673 75. 3246 75. 5892 75. 8669 76. 0948 76. 8504 77. 8919 78. 42 78. 843 79. 6805 79. 534 79. 7888 80. 9414 81. 9104 84. 1857 28 Source: Monthly Economic Trend-Bangladesh Bank , January 2012 Regression Analysis: Exchange Rate and Remittance SUMMARY OUTPUT Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations 0. 610778 0. 373049 0. 360993 2. 020275 54ANOVA df Regression Residual Total 1 52 53 SS 126. 2866232 212. 2385435 338. 5251666 Standard Error 1. 622261594 0. 001867047 Lower 95. 0% 62. 90219774 0. 006638903 Upper 95. 0% 69. 41280968 0. 014131912 MS 126. 2866 4. 08151 F 30. 94114904 Significance F 9. 36275E-07 Coefficients Intercept X Variable 1 66. 1575 0. 010385 t Stat 40. 78103 5. 562477 P-value 3. 7402E-41 9. 36275E-07 Lower 95% 62. 90219774 0. 006638903 Upper 95% 69. 41280968 0. 014131912 2 FOREIGN DIRECT INVESTMENT (FDI) INFLOWS AND STOCKS BY COMPONENTS IN BANGLADESH (In million US$) Inflows Period 996-97 Jul-Dec Jan-Jun 1997-98 Jul-Dec Jan-Jun 1998-99 Jul-Dec Jan-Jun 1999-00 Jul-Dec Jan-Jun 2000-01 Jul-Dec Jan-Jun 2001-02 Jul-Dec Jan-Jun 2002-03 Jul-Dec Jan-Jun 2003-04 Jul-Dec Jan-Jun 2004-05 Jul-Dec Jan-Jun 2005-06 Jul-Dec Jan-Jun 2006-07 Jul-Dec Jan-Jun 2007-08 Jul-Dec Jan-Jun 2008-09 Jul-Dec Jan-Jun 2009-10 Jul-Dec Jan-Jun 2010-11 JulyDec. Jan-Jun Source : Stocks Total 366. 85 157. 63 209. 22 603. 30 366. 07 237. 23 394. 10 339. 23 54. 87 383. 22 254. 25 128. 97 563. 92 449. 67 114. 26 393. 76 240. 21 153. 56 379. 18 174. 75 204. 43 284. 16 145. 82 138. 34 803. 78 322. 06 481. 72 744. 61 363. 54 381. 07 792. 4 411. 41 381. 33 768. 69 285. 03 483. 66 960. 59 602. 65 357. 94 913. 02 342. 22 570. 80 Equity Capital 136. 71 40. 79 95. 92 349. 02 236. 14 112. 88 195. 54 167. 63 27. 91 152. 98 109. 56 43. 42 372. 27 306. 76 65. 51 230. 11 168. 27 61. 84 163. 98 71. 97 92. 01 111. 23 64. 13 47. 10 361. 14 108. 79 252. 35 447. 22 173. 24 273. 98 464. 50 229. 67 234. 83 545. 69 166. 78 378. 91 535. 42 430. 34 105. 08 515. 14 113. 47 401. 67 Reinvested Earning 151. 27 79. 92 71. 35 181. 31 92. 10 89. 21 120. 71 100. 67 20. 04 80. 71 56. 19 24. 52 81. 00 53. 25 27. 75 84. 66 37. 26 47. 40 164. 97 69. 42 95. 55 161. 38 74. 58 86. 80 297. 1 152. 99 144. 12 198. 64 103. 36 95. 28 281. 00 169. 46 111. 54 197. 71 101. 70 96. 01 336. 61 149. 72 186. 89 331. 10 178. 05 153. 05 Intracompany Loans 78. 87 36. 92 41. 95 72. 97 37. 83 35. 14 77. 85 70. 93 6. 92 149. 53 88. 50 61. 03 110. 66 89. 66 21. 00 79. 00 34. 68 44. 32 50. 23 33. 36 16. 87 11. 55 7. 11 4. 44 145. 53 60. 28 85. 25 98. 75 86. 94 11. 81 47. 24 12. 28 34. 96 25. 29 16. 55 8. 74 88. 56 22. 59 65. 97 66. 78 50. 7 0 16. 08 Equity Capital †¦ †¦ †¦ †¦ †¦ †¦ †¦ †¦ †¦ 1010. 45 968. 83 1010. 45 1182. 07 1215. 54 1182. 07 1408. 98 1325. 97 1408. 98 1579. 15 1472. 70 1579. 15 1854. 10 1818. 86 1854. 10 2123. 50 1940. 7 2123. 50 2468. 63 2268. 39 2468. 63 2857. 96 2736. 50 2857. 96 3719. 99 3068. 07 3719. 99 3909. 60 3823. 32 3909. 60 5014. 96 4426. 69 5014. 96 Reinvested Earning †¦ †¦ †¦ †¦ †¦ †¦ †¦ †¦ †¦ 505. 89 492. 80 505. 89 470. 44 470. 37 470. 44 505. 13 494. 15 505. 13 637. 75 550. 10 637. 75 708. 43 649. 08 708. 43 880. 01 822. 04 880. 01 974. 18 904. 81 974. 18 1146. 22 1133. 87 1146. 22 873. 76 1109. 59 873. 76 903. 65 742. 04 903. 65 544. 21 474. 06 544. 21 Intracompany Loans †¦ †¦ †¦ †¦ †¦ †¦ †¦ †¦ †¦ 459. 04 428. 96 459. 04 454. 29 475. 85 454. 29 448. 82 382. 08 448. 82 410. 64 427. 89 410. 64 321. 16 408. 03 321. 16 362. 10 328. 7 362. 10 322. 72 363. 95 322. 72 364. 23 316. 86 364. 23 210. 68 221. 12 210. 68 325. 94 250. 66 325. 94 410. 29 378. 17 410. 29 Total †¦ †¦ †¦ †¦ †¦ †¦ †¦ †¦ †¦ 1975. 38 1890. 59 1975. 38 2106. 80 2161. 76 2106. 80 2362. 93 2202. 20 2362. 93 2627. 54 2450. 69 2627. 54 2883. 69 2875. 97 2883. 69 3365. 61 3090. 68 3365. 61 3765. 53 3537. 15 3765. 53 4368. 41 4187. 23 4368. 41 4804. 43 4398. 78 4804. 43 5139. 19 4816. 02 5139. 19 5969. 46 5278. 92 5969. 46 118. 31 211. 57 12. 64 131. 64 233. 62 71. 26 Statistics Department, Bangladesh Bank. 342. 52 436. 52 5196. 21 5143. 70 533. 65 612. 69 342. 21 462. 67 6072. 07 6219. 06 3