When the Bengladeshi taka depreciates. The central bank of Bangladesh is contemplating a devaluation of its currency—the taka (BDT)—from BDT 69 to BDT 100 = US$1:

a. What would be the percentage depreciation of the taka? Is it the same as the percentage revaluation of the U.S. dollar? Why or why not?

b. The devaluation would be accompanied by a relaxation of exchange controls and a modicum of flexibility. The taka would be allowed to fluctuate as a result of limited forex trading within a band of +/–2.25 percent around the new par value of BDT 100 = US$1. What would be floor and ceiling exchange rates?