Market-oriented dollar value to boost expatriate income

Due to the market-based pricing of the dollar, an increase in remittance inflow is expected. In his budget speech for the fiscal year 2024-25, the finance minister said that inflation will decrease if foreign exchange reserves increase.

The Finance Minister mentioned that during the period from July to May of the current fiscal year, 21.3 billion USD in remittances came into the country, which is approximately 9.82% higher than the same period in the previous fiscal year. Due to the continued growth in exports, a reduction in unnecessary imports, and an increase in the pace of remittances compared to the previous fiscal year, there was a surplus of 5.8 billion USD in the current account balance at the end of March this year.

He said that as an initial step towards making the exchange rate of the dollar market-based, the crawling peg exchange rate system has been introduced. This will encourage exports and increase the flow of remittances through official channels.

The Finance Minister expressed hope that although there is still a deficit in the financial account, it will decrease in the medium term, leading to an increase in foreign exchange reserves in the future. Stabilization of foreign exchange reserves will bring stability to the exchange rate of the Taka against foreign currencies and will support the successful implementation of measures taken under monetary and fiscal policies to control inflation.