2024-08-15 11:58:16
The new governor of Bangladesh Bank admitted that there is a shortage of foreign currency reserves. Ahsan H Mansoor said the crisis in reserves will not go away overnight. However, the supply of dollars in the market will not be reduced to unreasonable levels. Discussions will be held with development partners to increase reserves.
He said these things to reporters after the meeting held at the Secretariat on Wednesday (14 August) aimed at ‘reviewing inflation and food supply situation and reducing inflation to a bearable level’. The meeting was held under the chairmanship of Finance Advisor Salauddin Ahmed.
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In response to a question asked by journalists about the reserve crisis, the new governor said that there is a reserve crisis, the crisis will not go away overnight. We will see that. I haven’t been to Bangladesh Bank yet. We have to calculate how much we can supply to the market. We have to keep the minimum.
He said it cannot be reduced to unreasonable levels, as there will be a lack of confidence in the market. Keeping that, how much maximum supply can be given in terms of increasing imports or I have to ease up some payments that have been made. Because I have to pay him something to import further from him.
He said, walk very carefully. Walk and move forward. Hopefully, they can be done. These are very possible to do. We will discuss with the development partners we have. How to increase the reserve a little more. All in all will try and inshallah will start seeing results after few months.
When asked about the banking commission, the governor said, it was not discussed today. We will definitely discuss it. Banking sector must be reformed. It goes without saying. Now the government will decide how to do it. Bangladesh Bank will sit with the government and we will talk to the stakeholders. A roadmap should be made through discussion. You will know with time.
In response to another question, he said, in terms of banking sector reforms, mergers may come, re-capitalization may come, policy changes may come. These are options. Where and how in the case of any bank, it has to be understood in the field.
About the meeting, he said, the topic of today’s meeting was how to reduce inflation. Everyone thinks a lot about the market. Many data have emerged from them. This means that there is a possibility of working in three angles. One is the supply site ie how can we increase the supply by increasing the production. Bringing a positive impact in the market through that.
Another thing that has emerged is the cost push element. Which includes tax policy. In which extortion has come up in all these matters. Those places have to work. So that we can reduce this cost push element, said Ahsan H Mansoor.
He said, the third issue is the demand site. Intervening on demand. But that is already being done by Bangladesh Bank and we will do a little more review, if there is anything to be done in Fardar, it has to be done.
He also said that we have a deficit of foreign exchange. It is useless to deny it. Due to shortage, we are not able to import as much as we could. It will have an impact on the market.
The governor said, if it is possible to reduce the extortion in the market a little more. If we can increase production. Gradually I think within 5-6 months we will be able to bring inflation down to an acceptable level. This is our hope. have to work Time must be given. Let’s see, we will try.