Core Viewpoint - The Bangladeshi Taka has been overvalued against the US dollar in July after being undervalued for two consecutive months, raising concerns about Bangladesh's trade competitiveness in a turbulent global market [1] Group 1: Currency Valuation - The Real Effective Exchange Rate (REER) for Bangladesh in July was 101.14, up from 98.61 in June and 99.27 in May, indicating an overvaluation as it exceeds 100 [1] - The REER is based on 18 currencies representing 85% of Bangladesh's external trade, with 2016 fiscal year as the benchmark [1] Group 2: Economic Implications - An overvalued currency typically weakens export competitiveness and slows down remittance inflows [1] - A senior central bank official attributed the recent increase in the REER to several interconnected factors, including a weaker US dollar and rising domestic inflation in July [1]