The Bangladesh Bank (BB) is gearing up to implement a series of policy measures aimed at addressing key economic challenges. These include tackling inflationary pressure, stabilizing the foreign exchange market, managing growing non-performing loans (NPLs), and bolstering the country’s foreign exchange reserves. The BB has already drafted a policy and is seeking input from economists and stakeholders.
The move comes as the country faces mounting economic issues, including a 12-year high inflation rate of 9.92% in August, falling foreign exchange reserves ($21.45 billion on September 21), and a significant depreciation of the local currency against the US dollar. Experts have pointed to the need for more market-based approaches to interest rates and exchange rates. Additionally, addressing the growing NPL problem in the banking sector is crucial for economic stability.
The BB’s efforts aim to create a transparent and credible policy framework to navigate these challenges and drive economic improvement. However, successful implementation will be key, with calls for greater independence and dynamism in monetary policy decision-making.
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