Bangladesh economy doesn’t allow currency pegging: Kamal

Finance Minister AHM Mustafa Kamal on Wednesday said Bangladesh’s economy does not allow currency pegging as it is already market-based in the country.

Acknowledging that the prices of commodities have been rising in the international market alongside fuel prices, Kamal also informed that the price of the US dollar witnessed some fluctuations in the local market since it is not fixed.

The minister said that the US dollar price depends on demand and supply. “If the demand is more than supply, the price will increase.”

Kamal said that as a development partner, the International Monetary Fund (IMF) can suggest the government but they cannot dictate the government to take any decision.

“They are associated with our economy and they can make suggestions, but our economy doesn’t allow currency pegging as it is already market-based in our country,” he added.

He made the statements while replying to journalists’ queries virtually after chairing two separate meetings of the Cabinet Committee on Economic Affairs (CCEA) and the Cabinet Committee on Government Purchase (CCGP).

Kamal said that the point-to-point general inflation still remains within the target of the government as the overall inflation in the country has not increased. Defining the capital market as sensitive, the finance minister suggested the businessmen invest after knowing the background.

The government will provide all required support to develop the sector. The more the country’s economy will be stronger the more the capital market will be durable, Kamal added.

“There is the possibility of both gain and loss. People who want to invest there must be ready for the potential risk,” he said.