‘Forex crisis to go soon’

The current volatile foreign exchange market will be stabilised very soon as a result of various measures undertaken by the government and the central bank to resolve the crisis.

“The situation will be brought under control within the next 2-3 months,” said Bangladesh Bank Governor Abdur Rouf Talukder while addressing the annual banking conference on Saturday.

The two-day long Annual Banking Conference-2022 is being held at the Bangladesh Institute of Bank Management (BIBM) premises.

Speaking as the chief guest at the inaugural session of the conference, the BB governor said, “You all are aware that currently we are passing through a difficult time and not only Bangladesh, but many other countries of the world are also facing challenges.”

“Our economy was sustainable than our neighbouring countries, but the Russian invasion in Ukraine in the post-pandemic period has put us in a very difficult situation,” he added.

Observing that Bangladesh is an import-dependent country, Talukder said, “At present, import costs have gone up. It has created pressure on exchange and inflation rates.”

Regarding the interest rate cap in the lending rate, he said, “Different stakeholders have suggested withdrawing the interest rate cap, but if it is withdrawn, the entrepreneurs will have to pay additional interests for bank loans.”

“Now, we are basically trying to assist the entrepreneurs and banks by interfering into the supply side of the market,” he said, adding that the central bank monetary policy also has suggested interfering into the supply side to contain the demand.

Urging the bankers to maintain ethics in case of making a profit, the BB governor said, “Commercial banks must earn a profit doing business, but they should not forget that the country is above everything, and the banks also need to support the government.”

At the event, Mutual Trust Bank Managing Director Syed Mahbubur Rahman said the situation in the banking sector is now worsening due to the default culture.

Strict action should be taken against the defaulters who do not repay loans willingly.

BIBM Director General Md Akhtaruzzaman presided over the inaugural session of the conference attended by a number of academicians from home and abroad, officials of the central bank and top executives of different banks.