Economics
Prioritizing inflation control for economic resilience
According to the data from the Bangladesh Bureau of Statistics (BBS), the overall inflation rate in the country reached 11.38 per cent in November. This is the highest inflation rate in the past four months. Inflation is rising across both urban and rural areas. Among this, the food inflation rate was 13.80 per cent, the second highest in the last 13 and a half years. In July, the food inflation rate had reached 14.10 per cent. The goal of the monetary policy announced by the Bangladesh Bank is to control high inflation by reducing the money supply in the economy; however, no measures have been successful in controlling high inflation so far. There are no visible signs of inflation coming under control, and inflation continues to rise steadily.
Limited progress on people's economic hopes
After assuming office, the interim government formed a committee to prepare a white paper to understand the real state of the country's economy. The committee has already officially handed over its report to the chief advisor. The information about corruption and irregularities revealed in the white paper will alarm any conscientious person. It is undeniable that the country's economic condition is far from good. On August 5, following the student movement, former Prime Minister Sheikh Hasina resigned and left the country, and on August 8, the interim government assumed power.
Emphasizing loan recovery over redefining defaulted loans
Emphasizing loan recovery over redefining defaulted loans
Are borrowers or bankers more to blame for default loans?
According to the latest statistics from Bangladesh Bank, the total amount of default loans in the country's banking sector has reached 2,84,977 crore taka. This constitutes 16.93 per cent of the total loans disbursed by banks. In July, the amount of default loans was 2,11,391 crore taka. Therefore, in just three months, the amount of default loans in the banking sector has increased by 73,586 crore taka. During this period, the amount of default loans in state-owned banks has increased by 23,628 crore taka, while in private banks, the increase was 49,885 crore taka.
Is dominance of US dollar in global economy about to decline?
Recently, the BRICS summit was held in Kazan, Russia. Initially, BRICS was formed by four countries: Brazil, Russia, India, and China. Later, South Africa joined, giving it its current name, BRICS. Last year, five more countries were admitted, raising the membership to ten, although the group retained its original name. In this recent summit in Kazan, in addition to the 10 full BRICS members, 25 countries joined as observers, many of which may soon gain full membership. BRICS is fundamentally an economic cooperation bloc, whose member states represent 57% of the world's population and account for 47% of global GDP.
Legal reforms are essential to offset banking sector catastrophes
The private research institution, the Center for Policy Dialogue (CPD), has highlighted the dire situation of the banking sector in its latest research report. According to the report, over the past 15 years, widespread embezzlement has taken place in the country's banking sector, pushing it into a state of severe risk. Of the 60 banks operating in the country, at least 29 are struggling to function properly for various reasons. Among them, at least 10 banks are on the verge of bankruptcy. What was once a symbol of public trust, the banking sector, has now become a breeding ground for corruption.
Political shifts occur, but market syndicates persist
It has been less than two and a half months since the interim government took charge, making it premature to conduct an in-depth analysis of its successes or failures. This government assumed responsibility amid complex challenges in both the political and economic realms. Its primary duty is to enact effective reforms in political and economic sectors to facilitate broad-based, participatory national elections that are considered credible both nationally and internationally. With this objective, the government has embarked on various reform initiatives, forming several committees to propose recommendations, which are expected within the next three months.
Time to initiate urgent reforms in the banking sector
After the students' movement, an interim government assumed the responsibility of state management under special circumstances. The interim government is now passing three months in office. Public expectations from this government are very high. People hope that it will steer the country towards sustainable development by addressing the various damages created in society. However, there are growing concerns that public trust in the interim government is gradually fading. Although several commissions have been formed for reforms in various sectors, the general public is not well-informed about their activities and progress. In particular, there is skepticism about what the interim government is planning regarding the troubled banking sector and how much of that we will be able to see reflected in the future.
Our economy and the nobel in economics
Since the change in power, a climate of uncertainty has pervaded the country. Instability is evident in law enforcement and administration, affecting the economy. There is a state of paralysis in business and trade, which has been ongoing even before the interim government took office. While businesses are closing one after another, the amount of non-performing loans is rising.
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