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We need an integrated financial transaction system in the country to ensure further development of the economy. Because of a lack of such system, there are lots of anomalies and gaps for which the benefits are being taken by vested quarters and organizations, said Dr Khondaker Golam Moazzem, Research Director, Centre for Policy Dialogue (CPD).
“We observed that some of financial systems of the country are integrated. ICAB and NBR signed an agreement and thereby financial reporting are being cross checked. That is very positive initiative and it will help to reduce the number of false financial statements and ultimately would bring more financial transparency in the financial systems,” he added.
Articulating several of his recommendations on the recovery of the current state of economy, he said that further integration is required between NBR and the commercial banks as well as foreign exchange dealers to reduce financial corruption.
Dr Atiur Rahman, former Governor, Bangladesh Bank said, “We need to be very cautious about imports of different items to save the forex.”
Government may impose more taxes on import of various luxurious items in order to discourage the import, he said, adding we need to reduce the number of luxury projects that do not yield direct employment and investment.
“If we give emphasis on the local production of items that are being used for export products like ready-made garment, we can save 10 to 15 billion dollars a year,” he informed.
“Only by improving the service industry specially the freight industry would save thousands of dollars required for payments in shipments from Bangladesh,” he further said.
They were speaking at a virtual webinar on ‘Political Economy of Currency Devaluation in the Developing Countries: Comparative Practices and the Bangladesh Story’ organized by the Institute of Chartered Accountants of Bangladesh (ICAB) on Tuesday.
Dr Atiur Rahman, Former Governor, Bangladesh Bank graced the webinar as the chief guest where Dr Khondaker Golam Moazzem, Research Director, Centre for Policy Dialogue (CPD) attended as special guest. ICAB President Md Shahadat Hossain FCA delivered address of welcome.
Dr Jamaluddin Ahmed FCA, Past President - ICAB and Chairman, Emerging Credit Rating Ltd presented the keynote paper. Manzur Ahmed, Advisor, The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and Dr M Abu Eusuf, Executive Director, Research and Policy Integration for Development (RAPID) Bangladesh were the panel speakers.
ICAB President Md Shahadat Hossain said, “The currency market of the country has become jittery and the central bank was forced to devalue Taka several times after a big depreciation in January.”
The latest sale and purchase of a dollar is at a record of Tk 102 on the curb market, only highlights the extent of forex crisis, he said, adding even importers were compelled to settle import bills at Tk 97 against the BB-fixed rate of 87.60 for a dollar.
“This latest forex crunch will put further pressure on the country’s forex reserve, he said. It will impact the country’s economy and prices of commodity and foods in particular,” he added.
