Monetary policy fails to curb inflation: Economists
Staff Reporter :
Economists and businesses on Saturday said that the country’s monetary policy has not been effective in controlling inflation and suggested becoming more conscious in determining the exchange rate of foreign currency.
The economists came up with the remarks while speaking at a seminar on “Bangladesh’s Export Readiness: post LDC graduation perspective” organized by Dhaka Chamber of Commerce & Industry (DCCI) at its head office in the city.
Speaking at the seminar, DCCI President Ashraf Ahmed said, “We do not have much time for export readiness as Bangladesh is going to graduate from LDC status in 2026 which is knocking at the door. It is true that government is firmly committed to support the business community by all means to create a commendable position in the international market but the private sector needs a sustainable policy reforms in the days to come.”
“We will be able to create more conducive business environment, as much as faster we can achieve the strategic bets approach to have more products on our basket,” he added.
He also reiterated the need for easy access to finance for export oriented industries and reliable exchange rate. Dr Selim Raihan, Executive Director of SANEM, said that LDC graduation will create many opportunities for us but to grab those we need to do massive pragmatic policy reforms.
For export readiness after LDC graduation, he suggested for harmonization of monetary policy and fiscal policy, regulatory efficiency and regulatory quality, reducing NPL, ensuring long term financing from capital market.
He also said, “Private sector investment is stagnant as well as FDI inflow is low. Right at this moment, we have to make our economic zones fully ready as soon as possible.”
Regarding the monetary policy, he said, “Effectiveness of our monetary policy is yet to be seen. Considering the current situation, more effective measures should be taken.”
At the same time, he suggested to be more conscious in determining the exchange rate of foreign currency.
Raising question over scale down the special incentives to RMG sector, BGMEA Director Asif Ashraf said, “The special incentives to the RMG sector has been scaled down recently. But, our export is still dominated by the sector.”
He, however, termed non-cotton market as the most potential sector which is still untapped by the Bangladeshi manufacturers.
He also demanded for a conducive exchange rate for being competitive in the international market.
Mohammed Mahbubur Rahman Patwary, Managing Director of Sonali Aansh Industry Ltd and Malik Talha Ismail Bari, DCCI’s Senior Vice President, among others, spoke at the seminar.
