Bangladesh facing biggest macroeconomic challenge in decade: SANEM

He was speaking at a roundtable titled ‘Where is the Economy Heading Towards and the Next Budget’ organised by a Dhaka-based newspaper.

Attributing the inflation to supply chain disruption, he said the exchange rate of the taka against the US dollar was a relief in the last 12 months with ample supply of dollars in the market, but that comfort also diminished with the recent crisis in the sector.

The depreciation of the taka against the US dollar cannot be held off forcefully. It needs a gradual adjustment. The difference between official and unofficial exchange rates of the taka against the US dollar will boost hundi transactions, Raihan cautioned.

"We must think about how long we will rely on remittance and garments as drivers of our economy as both things depend on the existing condition of other markets. We are not under pressure like Sri Lanka in terms of debt management," he was quoted as saying by Bangladeshi media reports.

But Bangladesh must be wary, since many of the country's mega projects are financed by foreign debt and these may suffer for cost and time overrun and lack of feasibility study, he added.

ALCHEMPro News Desk (DS)