Tuesday, 6 December, 2022

Won’t be stabilised only by cutting imports

Says the outgoing spokesperson of Bangladesh Bank, emphasising the need for increasing exports

  • Staff Correspondent
  • 5 October, 2022 12:00 AM
  • Print news
Won’t be stabilised only by cutting imports

Foreign exchange reserves cannot be stabilised only through bringing down imports while increased exports will help better, said a senior central bank official.

The key foreign currency earning sources - exports and remittance - declined substantially in September, widening trade deficit and increasing pressure on reserves.

“The stability of the reserve cannot be achieved through lowering import bills only. The export, import and remittance should be increased in parallel for a better reserves situation,” Serajul Islam, executive director of Bangladesh Bank, told a meeting at the central bank’s head office in Dhaka on Tuesday.

“The import bills have been cut significantly. But that’s much lower than export and remittance earnings,” he added.

 The outgoing spokesperson of the Bangladesh Bank shared his thoughts on the last day of his job.

The foreign currency reserves dropped to $36.40 billion last week after Bangladesh Bank sold $10 billion from foreign exchange reserves in the last seven months to tackle the dollar crisis.

Remittance inflow in the country has also declined by nearly 25 percent amid disparity in exchange rates of the green back between formal and informal channels.

Expatriate Bangladeshis sent home around $ 1,539.49 million in September compared to $2,036.93 million in August and $2,096.32 million in July, according to the Bangladesh Bank figures.

The central bank recently served show cause notices to at least 10 of its officials for allegedly sharing official information to the media.

Besides, the government issued a gazette mentioning Bangladesh Bank as “critically sensitive infrastructure” under Digital Security Act.

In this context, the access to information from the central bank becomes harder than ever.

Replying to a question, Serajul Islam however said that such measures will “open bigger opportunities” for journalist to do reporting.

“There is nothing to be worried about. It won’t happen that nobody (at the central bank) is giving you information. But the information should be provided for the sake of the nation’s interest,” he said.

“Now, the officials are feeling shy to give some information. But I think the situation will become easy soon. I don’t think that (the steps) is to prevent reporters (from doing journalism),” said the outgoing spokesperson of Bangladesh Bank.