Bangladesh Bank Governor Abdur Rauf Talukder has expressed strong optimism that the economy of Bangladesh will turn around in the current financial year. He said, Bangladesh has now reached the bottom. There is no chance to go down. Now go up. As a result, the inflation rate will start to decrease in December.
This rate may decrease to 8 percent in December. It may come down to 6 percent by the end of the current financial year. Besides, steps have also been taken to reduce the pressure on the country’s foreign exchange reserves. This pressure will also decrease from December.
Regarding money laundering from the country, he said, 10 times more money is smuggled under the cover of business than hundi. 13,000 Bangladeshis have formed companies in Dubai with money from smuggling. Bangladeshis have formed 2500 companies in Portugal. These companies are formed with laundered money. Earlier, about 1.5 billion dollars were smuggled out of the country through invoicing every month. It has now come down as a result of strict supervision.
He also said that currently no new loans will be given from the country’s foreign exchange reserves. No new fund will be created. Debt status or fund size is being reduced by collection from earlier loans or funds created.
He also said that the volatility in the foreign exchange market has reduced a lot. He expressed strong hope that the situation will improve in the future
He said these things in a discussion meeting with the leaders of the Economic Reporters Forum (ERF), an organization of economic reporters, on the overall economic situation of the country on Monday.
The central bank is taking opinions and recommendations from renowned economists and related organizations about what to do in the overall economic situation in the country. In the meantime, the central bank has held several rounds of meetings with various economists and organizations. This time the opinion of ERF leaders was taken. By coordinating these opinions, the central bank will keep its reflection in the next monetary policy. The monetary policy for the last half of the current financial year i.e. next January-June period will be announced in January.
The Secretary of Finance Department of the Ministry of Finance was also present at the exchange meeting. Khairuzzaman Majumdar, Financial Institutions Department Secretary Mohammad Salimulla, Deputy Governor, other senior officials, ERF President Mohammad Refayet Ullah and General Secretary Abul Kashem among other leaders.
In the meeting, the central bank governor also said that the inflation rate will start to decrease in the future. There is nothing to fear now. We have now reached the very bottom. Now we have to move forward. I have reached the end of the tunnel. I can see the light now. As a result, the economy will now move forward.
Regarding the rising rate of inflation, he said, the central bank does not have much to do to control this rate. Because the inflation that is happening now is not due to the increase in the flow of money. Because the flow of money has not increased much. This inflation has been caused by the devaluation of money, increase in commodity prices and the impact of the international market.
He admitted that the syndicate is behind the price hike. That is why the prices of some products are increasing irrationally. Even if the supply of goods is normal, their prices are also increasing. That is why there is no denying that people are suffering. Central banks are selling dollars from reserves to keep the dollar market stable. Through this, the upward movement of the dollar is being controlled to some extent.
Regarding the International Monetary Fund (IMF) loan, the governor said that the second installment of the IMF loan will be available next December. Being a loan agreement, there is no doubt about getting this loan.
Regarding money laundering, he said, at least 10 times more money is laundered under the cover of business than hundi. For example: There are 13 thousand Bangladeshi companies in Dubai. These are organizations built for money laundering. Similarly, two and a half thousand institutions have been established in Portugal.
The source of these funds is trafficking. Earlier, about one and a half billion dollars was smuggled through invoicing every month. Later on surveillance was increased. That is why the LC bill has come down to 4 to 5 billion instead of 8 to 9 billion. But this did not reduce the supply of products. However, the restriction on opening of LCs will be lifted if the inflow of dollars increases.
The governor said that no more dollars will be invested inside the country to reduce the pressure on the reserves. Meanwhile, the Export Development Fund (EDF) has been reduced. EDF of seven and a half billion has been reduced to three and a half billion. Efforts are being made to recover the debt of Payra Port. A few more dollars will be available in the next two months. Then the reserve will increase. Therefore there is nothing to worry about the reserves of the country.