“Government has cut spending in unproductive sectors to control inflation. The government is increasing the coverage of the social safety net (eg, one crore family cards, truck sales, etc.).”
Measures taken by Bangladesh Bank to control inflation, reduce pressure on exchange rate and foreign exchange reserves, increase policy interest rate, delimit the interest rate on deposits and bank loans and make them market-oriented, not printing money to the government, control import expenditure and export income and Initiatives have been taken to increase remittances.
“In addition to this, there is a market-oriented exchange rate of foreign currency, increased supervision of the foreign currency market including checking import prices, and a system to meet the import costs of necessary goods from the reserves of Bangladesh Bank.”
“The prevailing currency exchange rate is very much in line with the real effective exchange rate index,” the central bank said, keeping the rupee’s exchange rate against the dollar in line.
Current foreign exchange reserves as per IMF’s BPM-6 are around US$ 20 billion, which can cover about 4 months of import expenditure, the statement said.
Tags: Exchange rate stability bring relief economy Bangladesh Bank
