Economy
“Import control cannot solve dollar crisis”
Limiting imports is not a permanent solution to the dollar crisis as the global economic downturn has caused the dollar exchange rate to skyrocket internationally, said Bangladesh Bank, Executive Director and Spokesperson Serajul Islam.
“Not only in Bangladesh, but dollar prices have also increased much more in the neighboring countries which result, we are under quite a lot of pressure. But reducing imports is not a permanent solution to deal with this,” he told the media.
It was his last working day at the Bangladesh Bank.
Serajul Islam said to handle the global pressure, Bangladesh should emphasize increasing exports.
He wished businessmen to establish Bangladesh as a brand in the world market.
“Our remittance inflow is going down a bit. Along with this, the amount of export earnings is also decreasing. This has created some pressure on the reserves.”
The Bangladesh Bank official, however, claimed that the economic pressure will not last as both remittances and export earnings will increase.
Export earnings fell by 6.25% year-on-year in September after a strong comeback in August with a 14% growth due to the deepening Ukraine-Russia crisis, while the US Fed hiked the interest rate to tame inflation.
Henceforth, remittance earnings, another lifeline of foreign reserves, was $1.5 billion, the lowest in seven months, as the decision of fixing the dollar rate for remittance by banks backfired, prompting wage earners to send money home through illegal channels to get higher prices.
On the other hand, the country’s trade deficit, which had slowed down in July-August amid falling import expenditure, may now widen further in the coming months due to the fall in remittance and export.
The trade deficit grew by 6.30% to $4.28 billion in the first two months of the current fiscal year whereas it had grown by 35% in the first month of the year, according to the Bangladesh Bank data.
Expatriate Bangladeshis sent approximately US$ 2.11 billion in remittances during the first 28 days of September in the fiscal year 2024-25, according to data released by Bangladesh Bank on 29 September.
Of this total, state-owned and specialised banks handled $679.10 million, while private banks received $1.43 billion in remittances.
Chief Adviser to Bangladesh’s interim government, Professor Muhammad Yunus, has vowed to expedite reforms and hold elections swiftly. Yunus, who recently assumed the role after the collapse of Prime Minister Sheikh Hasina’s 15-year administration, expressed his commitment during an interview with Tokyo-based news outlet NHK WORLD in New York on Sunday. He was attending the United Nations General Assembly at the time.
Following mass student-led protests that ended Hasina’s long-standing rule in August, Yunus stepped in as the leader of the caretaker government. Known for founding Grameen Bank, an institution providing microloans to the underprivileged, Yunus, along with the bank, earned the Nobel Peace Prize in 2006 for his efforts in poverty alleviation.
During the interview, Yunus emphasized that the interim government’s primary mission is to implement reforms promptly and ensure elections are held as soon as the groundwork is complete. He underscored the importance of success, stating, “Failure is not something that we can accept.”
Addressing the pivotal role of students in the ousting of the Hasina administration, Yunus acknowledged the sacrifices made by young people, referring to their involvement as part of a “revolution.” He highlighted his intention to engage the younger generation in shaping policy.
Furthermore, Yunus called for continued support from Japan, Bangladesh’s largest donor, during this crucial transition period. He stressed that Japan’s assistance is vital to stabilizing Bangladesh’s economy and fostering a democratic foundation in the nation.
Syeda Rizwana Hasan, the Adviser for Environment, Forests, and Climate Change, announced today that steps will be taken to restrict the use of polythene shopping bags to safeguard future generations.
Starting from October 1, polythene bags will be banned in shopping malls, followed by a ban in kitchen markets from November 1.
“Everyone must take responsibility and stop using polythene voluntarily. Action against polythene producers will begin from November 1,” Rizwana Hasan stated during a seminar.
The Department of Environment (DoE) organized the seminar to raise public awareness about alternatives to banned polythene bags.
Rizwana Hasan highlighted that the restriction on polythene will be executed in phases according to legal provisions, and discussions with shopping centers and store owners are ongoing to ensure a smooth transition.
She also announced plans to make the government secretariat a plastic-free zone by December.
Other speakers at the seminar included Environment Secretary Dr. Farhina Ahmed, DoE Director General Dr. Abdul Hamid, Director Rajinara Begum, President of the Shop Owners Association Muhammad Helal Uddin, and Md. Arifur Rahman Bhuiyan, Assistant Professor of Environmental Science at BUP. They discussed the harmful effects of polythene and the need for alternative products.
Earlier, Rizwana Hasan inaugurated a fair showcasing eco-friendly alternatives to polythene bags and visited 24 stalls. The fair featured products from government and private entrepreneurs, including reusable bags, jute bags, paper bags, and items made from bamboo and cane.
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