Some stability achieved, yet economic vulnerabilities persist: Governor

Although the economy of Bangladesh has moved towards some stability, there is still a great deal of fragility within it, said Bangladesh Bank Governor Dr. Ahsan H. Mansur. He said that it will take enough time to completely repair the unprecedented irregularities and corruption that have occurred in the country's financial sector in the past and bring it back to normal.

To overcome such a situation and accelerate the country's growth, he called on the newly formed government to take effective and bold steps. Regarding inflation control, the Governor said that although the government has made efforts to achieve the 7 percent inflation target, that goal has not been achieved yet. He said that it will take more time to normalize the market situation and stabilize the purchasing power of the people.

The Governor expressed hope that the reform programs taken by the previous interim government will be implemented at full speed by the newly elected government. According to him, the government led by Tarique Rahman will take necessary economic initiatives in the larger interest of the country and for the welfare of the people.

The Governor of Bangladesh Bank has expressed positive optimism about the country's foreign exchange reserves. He said that the reserves will exceed 35 billion US dollars this month and has predicted that the reserves will reach 40 billion dollars by the end of the year. As a result, the country's macroeconomic situation will return to normal and Bangladesh's position in international trade will be strengthened.

However, issues such as banking sector reforms and recovery of defaulted loans will be major challenges for the new government. Bangladesh Bank and the Ministry of Finance need to work together to overcome these problems. The country's current economic challenges and the issue of increasing reserves may be discussed in the first meeting of the new cabinet this afternoon.

Dr. Ahsan H. Mansur believes that if proper policymaking and good governance are ensured, the country's economy will turn around quickly and the suffering of the common people will be reduced.