Within a week, Bangladesh Bank has again devalued the US dollar. Today, Monday, the exchange rate of the US dollar has been increased by 60 paise to 7 rupees 50 paise. Exporters and expatriates will benefit from this. On the other hand, the cost to importers will increase.
Bangladesh Bank is constantly selling dollars from the reserve. And as the demand for the dollar increases, prices are slowly rising. Thus the central bank is trying to control the market. However, many economists are in favor of leaving the dollar price to supply-demand.
Prices of consumer goods, raw materials and oil have risen in the international market. With the increase in ship rent. This has increased the import cost by about 44 percent. This is putting pressure on the foreign exchange reserves. Because, at the rate at which imports have increased, exports have not increased at that rate. Expatriate income has also decreased. As a result, deficit is being created every month. For this reason, the cost of import has to be paid by selling dollars from the reserve.
With the reserves now available, it is possible to meet the import cost of five and a half months. If import costs continue to rise in this way, the reserves will go down further. Again, the pressure of the International Monetary Fund is to calculate the reserves properly. To do so, reserve exporters would have to exclude loan funds, government projects and loans to Sri Lanka, and deposits with Sonali Bank from the reserve account. This will reduce the reserves by more than কোটি 600 million. Now the reserve is 4 thousand 200 million US dollars.
Bankers say that good expatriate income has come to the country due to Eid. However, the rate at which import costs have increased is not going to be met by expatriate income and export income. As a result, the country’s currency market is now volatile with the dollar. There are no signs that the crisis will subside any time soon. This crisis is affecting the foreign exchange reserves deposited in the central bank. Besides, there has been a cash crunch in the banking system. Because, Bangladesh Bank is withdrawing money from the bank by selling dollars. This is also creating a current account deficit.