BB asked to stop printing Taka to contain inflation

Staff Reporter :
The main responsibility of controlling inflation is in the hands of the central bank as the countrymen have been suffering very much due to the global economic crisis and inflation.

Considering the ongoing economic crisis, the Bangladesh Bank (BB) has decided to consult the issue with the country’s noted economists, bankers and journalists.

As part of the initiative, Wahid Uddin Mahmud, economic advisor of the former caretaker government, on Thursday attended a meeting with Bangladesh Bank Governor and other officials and advised the central bank not to give loans to the government by printing new currency notes.

He suggested the BB Governor Abdur Rauf Talukder that it is very urgent to control the inflation to resolve the ongoing economic crisis rather giving loan to the government by printing Taka.

“The noted economist suggested controlling inflation on an urgent basis.

So we have decided to discuss with various sectors of the economy.

The future monetary policy will be made according to the suggestions of the experts,” Bangladesh Bank’s Executive Director and Spokesperson Md. Mezbaul Haque told reporters after meeting.

According to BB spokesperson, Bangladesh has kept inflation under control better than other countries even in the midst of the global economic crisis.

“It is true we are in crisis, but we are trying to solve this crisis. For example, various measures have been undertaken to control imports, increase exports and remittance collection.

Bangladesh is also paying the toll as inflation and interest rates rise in the developed countries,” Md. Mezbaul Haque said.

Mezbaul Haque also said, “Wahid Uddin Mahmud today advised for a proper implementation of the monetary policy and not giving loans to the government by printing new currency notes.”

More discussion on the issue with economists, Economic Reporters Forum, Chamber of Commerce and various people in the economic sector will be in the days to come.

Normally, the government borrows money from commercial banks, but in this situation, the Bangladesh Bank has started printing Taka to supply money to the government.

Earlier in January, over Tk50,000 crore was printed and it was the highest amount of freshly minted money in a single year in recent history.

In the latest development, the central bank provided Tk500 crore to the government through a 20-year bond auction on 28 December when the bidding rate was 8.95%.