BB governor assures stability in dollar, reserves
Staff Reporter :
Governor of Bangladesh Bank Dr. Ahsan H. Mansur has assured that concerns regarding the country’s foreign exchange reserves and the dollar crisis have eased.
He stated that the decline in reserves has been brought under control.
“Not a single dollar has been received from the International Monetary Fund (IMF), yet remittances have increased by 24 per cent and are expected to exceed 30 per cent this month.
By June, remittances are projected to surpass $30 billion,” he said.
He made these remarks as the chief guest at a seminar titled “Seminar on Bangladesh Macroeconomic Landscape: Challenges in the Banking Sector and the Path Ahead” organized by the Economic Reporters Forum (ERF) at Paltan, Dhaka, on Thursday (February 20).
Dr. Mansur emphasised that Bangladesh Bank is no longer selling dollars, and the difference in exchange rates between banks and the curb market has significantly narrowed.
He also claimed that dollar smuggling has been effectively curbed.
Refuting allegations of exchange rate manipulation, he said, “A group in Dubai attempted to manipulate the dollar exchange rate, but we remained unaffected.”
The governor pointed out that the decline in deposit growth has led to a slowdown in private sector credit growth, rather than just the rise in policy rates.
“Government borrowing has reduced from 12per cent to 9per cent, and now banks must focus on lending to the private sector.
The days of earning easy profits by holding funds are over. Banks must now generate profits through lending,” he stated.
Addressing Bangladesh’s transition from Least Developed Country (LDC) status, Dr. Mansur noted that no other country in Bangladesh’s peer group remains in the LDC category.
“Bangladesh met the criteria for LDC graduation in 2021, but due to pressure from the industrial sector, the transition was extended to 2026. Graduation brings many benefits.
There is no dignity in remaining poor. Why shouldn’t we become a middle-income country? We are already on that path. Staying classified as a low-income country just to enjoy tariff benefits is not an option,” he asserted.
Dr. Mustafizur Rahman, Distinguished Fellow of the Center for Policy Dialogue (CPD), stressed the need to boost investment to reduce inflation.
“Two crucial sectors for increasing investment are banking and revenue. However, unless the National Board of Revenue (NBR) undergoes effective reforms, the banking sector cannot progress,” he cautioned.
ERF President Daulat Akhtar Mala delivered the welcome speech at the seminar, while ERF Joint Secretary Manik Muntasir moderated the event.