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Contractionary monetary policy alone can’t solve inflation woes
The Bangladesh Bank announced the second monetary policy of the current fiscal year on February 10, 2025. This was the second monetary policy for the fiscal year 2024-25 and the first policy under the interim government. There was considerable anticipation regarding the announced policy, and many experts had expected it to be contractionary in nature. Indeed, the policy can be described as contractionary in terms of its characteristics, as it focuses more on controlling the existing high inflation rather than achieving high growth.
End uncertainty around Rooppur Nuclear project
Most of the mega-projects undertaken during the previous Awami League government have now become a burden. Even after some projects have been completed, they are not yielding the expected benefits. For instance, the Karnaphuli Tunnel. Additionally, for many of the mega-projects, the government cannot predict when they will be completed. One such expensive project is the Rooppur Nuclear Power Plant.
Excessive foreign debt erodes financial independence
In the 1970s, an American development economist visited Bangladesh. At one point, he gave a speech to the faculty members of Dhaka University. The economics department’s professors were notably present at this event. During his address, the American economist presented his views on why Bangladesh’s economic development was not progressing to the desired level. The professors in attendance listened intently to his words. At that moment, a young economics professor from Dhaka University stood up and said to the American economist, "The reason we are unable to achieve the desired level of development is because you are intervening in our economy in various ways." After a brief pause, the American economist replied to the young professor, saying, "If 80 percent of the funds for your country's development activities come from us, whose economy is it? If you were able to finance your development from domestic sources, we would not need to offer any advice." Hearing this, the young professor remained silent and sat down.
Lessons from Bangladesh’s tussle with Adani Power
“Did you hear that Adani is refusing to supply Bangladesh with electricity?” a friend asked me recently. I knew it was a loaded question, my friend being a nationalist. “You recall wehad no power because we couldn’t pay for shiploads of fuel and coal just a few years back?” I asked back.
ISPR requests not to get misled by rumours over security of St. Martin’s
Inter Services Public Relation Directorate (ISPR) has urged all not to be misguided by rumours spreading through social media over the security of St. Martin’s island centering Myanmar's ongoing internal conflict near the island.
Multifaceted pressures on country's economy
The inflation rate in government surveys is nearing 10 percent. Middle and lower-income groups are struggling to cope with rising expenses. The devaluation of money is rampant, with the exchange rate of the dollar being misused. Over the past three years, the value of the dollar has increased by 30 taka. Alongside a decline in revenue in several key sectors, there's an active stream of income from expatriates, affecting the country's foreign currency reserves
Dollar price in open market Tk125
Just a day after the central bank fixed the dollar price at Tk 117 using crawling peg method, the exchange rate of a dollar in the open market today (May 9) has skyrocketed to Tk 125, increasing by Tk 7 per dollar.
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