Financial crisis is not so critical
During a workshop titled "Inequality, Financial Crimes, and the Healing of Bangladesh's Economy," organized by Bonik Barta on November 11, 2024, at the Pan Pacific Sonargaon
Zeauddin Ahmed
- Economist
- Sat, 23 Sep 23
Former Managing Director of Bangladesh Bank and Former Managing Director of The Security Printing Corporation (Bangladesh) Limited, or Takshal
The democracy practiced in Bangladesh
Although democratic systems are in place in most countries today, the methods and practices followed in these democracies are not the same everywhere. However, regardless of the differences in practices, the core principle of democracy is that a government is formed through the direct or indirect vote of the people. Despite numerous debates for and against democracy in political science, democratic systems are considered the best approach for a country's development; however, significant progress can also occur under autocratic rule. In some Middle Eastern Muslim countries, there is no democracy, no accountability, and no freedom of speech for citizens, yet development continues. Therefore, judging democracy solely by development is not appropriate.
Where is Trump's foreign policy headed?
Donald Trump is the 47th President of the United States. Presidential elections are pivotal in American politics, offering a reflection of voter sentiment toward various policies, economic programs, foreign relations, and global trade strategies. Without waiting for the final election updates, Trump announced himself as "President" in front of enthusiastic supporters in West Palm Beach, Florida. Meanwhile, Kamala Harris, who was also prepared to deliver a victory speech, refrained from doing so when it became apparent she wouldn’t win.
Attacks on Iran's oil facilities could trigger global economic shock
On October 1, Iran launched nearly 200 ballistic missiles targeting Israel; according to Israeli statements, almost all missiles, except for one or two, were destroyed in the air. Meanwhile, Iran claims that 90 per cent of their missiles successfully hit their targets. There is some truth to Iran's statement; otherwise, Israel would not have been adding the US's most advanced missile defense system, Terminal High Altitude Area Defense (THAAD), to its defenses. Israel's air defense system, Iron Dome, was considered impenetrable against enemy-fired missiles, rockets, or warplanes. In addition to Iron Dome, Israel has long been using the US Patriot missile system, but this was deemed insufficient, leading to the addition of THAAD.
Due to why printing money cause inflation
In a speech to the nation, Interim Government Chief Adviser Dr. Muhammad Yunus stated that the people of the country are suffering from inflation due to the 'fascist' government's decision to print and release an additional Tk 600 billion for looting. Controlling this inflation is one of the interim government's main objectives. The Governor of Bangladesh Bank has also blamed this Tk 600 billion for the inflation and rising prices. The liquidity crisis in the banking sector has become so severe that several banks are now forced to collect deposits at interest rates above 12%. Due to the instability in the country and the banking sector, investment has stagnated, with some banks opting to invest in government treasury bills and bonds. Not only banks, but private individuals are also making significant investments in these government bills and bonds at high interest rates. The uncertainty in the industrial sector and high-interest rates have caused a crash in the stock market.
Oversight alone won't strengthen weak banks
Upon taking office, Bangladesh Bank Governor Ahsan H Mansur commented that ten banks in the country are in a state of bankruptcy. He made this remark during a press briefing with journalists. He has also assured that efforts will be made to rescue these banks. However, he has questioned the necessity of weak banks that are not recognized internationally and mentioned plans to merge these weak banks.