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Reasons behind Bangladesh’s dollar crisis

Economic Tag: Forex

Due to excessive reliance on imports and a lack of domestic production of goods and raw materials, Bangladesh is currently experiencing a financial crisis that is straining its foreign exchange reserves. As the conflict between Russia and Ukraine broke out in February of last year, commodity prices rose and Bangladesh’s import costs for FY22 increased to $82.49 billion, a 36% increase over the previous year.

Nonetheless, imports have decreased dramatically this year, and some commodity prices are falling. According to bankers, maintaining the momentum of export growth in the face of the imminent prospect of a recession in Europe and America will be necessary to maintain market stability over the coming few months.

 

 

Source for more details:

The Business Standard

 

Source for more details:

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