Strict action against attempts to create artificial dollar crisis

Strict action will be taken if anyone tries to artificially increase US dollar prices, Finance Minister AHM Mustafa Kamal has said. 

“Many are making import arrangements by increasing dollar prices. Denied by one bank, they are approaching another. The government is working to end this,” he told reporters after a meeting of the Cabinet Committee on Government Purchase in the capital on Wednesday.

He said the dollar crisis would end soon while remittance inflows and export earnings would increase this year.

“We do not print dollars; we earn it. We earn dollars from remittances and those who are doing business abroad. The situation has not become worse recently,” Kamal said.

He also said exports and remittances were increasing, expressing hope that remittances would be higher compared to last year and the demand for dollars would be met through remittances and exports.

The minister said Bangladesh had sought loans from the International Monetary Fund (IMF) to maintain a balance in foreign exchange transactions. But he did not reveal the amount.

He said loans have been sought as Bangladesh needs it now.

Asked whether there was any sudden pressure on the economy, he said, “We have to consider different perspectives when we manage the economy. We need loans now. But after a while, we will not need it.”

He further said if the government had previously revealed the demand for loans, everyone would have come to know that. “If we sought loans then, the IMF would have imposed various conditions and we would not have any chance to bargain. That is why we did not seek loans then.”

“It was done in the interest of the country. Everyone has the right to know if we take loans, and my job is to explain that. We said we need loans, but we did not give any specific figures.”

Kamal said the decision on loans would be made considering whether the IMF’s conditions are in favour of the country and compatible with the development policy.

“We will also seek loans not just from the IMF but also from all development partners, including the World Bank, the Asian Development Bank, and Japan International Cooperation Agency.”

Responding to a question, the minister said the economy is doing well because of the 6 per cent and 9 per cent interest rates, adding that many businesses would otherwise have gone bankrupt during the coronavirus pandemic.

Terming it a very good decision, Kamal said this has made the banking sector stable while the private sector is also in good condition.

“It is not like the government will change this if the IMF asks us to do so. However, the decision will be changed considering the reality, if needed.”