Bangladeshi economist and director of Policy Research Institute of Bangladesh.
The weak and troubled banks will no longer be supported by printing money. Shutting down banks suddenly or printing money to solve the problem is not the way forward. There are no plans to cancel the 1,000-taka note, so there should be no rumors about it. However, the dissolution of the boards of directors of weak banks is under consideration
The current poor state of the banking sector can be largely attributed to the actions of Bangladesh Bank. It is important to investigate why the central bank supported irregularities. One must remember that the overall decline in the nation's values has coincided with the deterioration of the banking sector. Furthermore, controlling inflation remains our primary challenge. Inflation will decrease, but not immediately; measures must be taken to reduce it effectively. Efforts should focus on increasing reserves and curbing inflation. Bangladesh Bank will collaborate with the government to prevent money laundering.
In the wake of the student movement aimed at reforming the quota system, Prime Minister Sheikh Hasina has resigned and left the country. This event marks a significant moment in Bangladesh's political history. The students began their peaceful and non-violent movement on July 1, seeking quota reforms. However, the movement later turned violent. By mid-July, the protests had escalated to violent attacks on key state establishments, including the Bangladesh Television Building, the metro rail, and the Roads and Highways Department. There is debate over who exactly carried out these attacks, as the students claim they were not involved in any attacks on state property. Hence, it is difficult to determine the exact culprits.
Bangladesh has been facing many problems in international trade for a long time. Particularly in international trade, Bangladesh has incurred significant deficits, which cannot be overlooked. In a developing country like Bangladesh, trade deficits are inevitable. The disparity between imports and exports in international trade constitutes the trade deficit. Bangladesh will inevitably face trade deficits in international trade. This is because our imports consistently exceed exports by a considerable margin each year. As a result, the trade balance is naturally tilting against us.
The authorities concerned are actively striving to attract both local and foreign investments; however, the success rate in this field is not significantly high. Despite setting a goal to increase the individual investment rate to 28 percent of GDP during the seventh five-year plan, this target has not been achieved. In the fiscal year 2022-23, the rate of individual investment was 23.64 percent. In the current financial year, the national budget has set a target of raising the rate of investment in the private sector to 27 perce
Recently Bangladesh Bank's foreign exchange reserves are decreasing. There are various reasons for the decline in reserves. We have several sources to earn foreign exchange. Among these, export of goods and services, export of manpower and foreign direct investment are significant.