The government has cut the export subsidy for almost all sectors to reduce the pressures on Bangladesh's coffers and bring down the rates gradually
The economy is losing momentum. Inflation remains stubborn. Bangladesh is facing deterioration in external buffers, with official reserves falling to $20.18 billion as of January 10, less than half their historic peak in 2021. The currency shock is lingering.
The economy now can take the centre stage with the elections finally done for
Central bank data highlights continuing financial account deficit in the face of international currency outflow
The present government started its journey at a time when the global economic environment was conducive to growth and low inflation. Food prices had stabilised after the global food crisis of 2007-08. Interest rates were lowered globally in response to the global economic crisis of 2008.
The pass-through of a sharp depreciation of the local currency accounted for half of the inflation surge seen in Bangladesh in the last financial year, according to the International Monetary Fund (IMF)
Migrant workers sent home $1.98 billion in October, a four-month high, as banks stepped up efforts to woo more remittance buoyed by a relaxed central bank rule on incentive, a development that is expected to give some relief to a country reeling under the foreign exchange crisis.
Food inflation in Bangladesh stayed above 12 percent for the second consecutive month in September as prices showed no signs of cooling down, hitting the pockets of the consumers who spend most of their incomes to feed their families.