Bangladesh squeezes imports of luxury items amid economic crisis

[Imran Khan]

Bangladesh squeezes imports of luxury items amid economic crisis​

Xinhua | Updated: 2022-11-28 15:51

DHAKA - In an apparent bid to conserve eroding forex reserves, Bangladeshi prime minister Sheikh Hasina has directed the country's relevant authorities to squeeze imports of luxury items.
Sheikh Hasina, however, stressed the need for importing more essentials. She gave the directives at a secretary-level meeting held in the Bangladeshi capital Dhaka on Sunday.
Bangladeshi cabinet secretary Khandker Anwarul Islam briefed journalists about the premier's directives after the high-profile meeting.
Hasina asked the country's commerce ministry to increase import tariffs on 40 luxury goods to discourage the import of such products and improve the dollar liquidity in the forex market earlier this month.
Bangladesh's forex reserves reached $34.10 billion on Nov 23, declining from $34.30 billion on Nov 17, showed the latest Bangladesh Bank (BB) data.
Against this backdrop, the central bank of Bangladesh is reportedly contemplating changing the exchange rate of the Bangladeshi currency taka against the US dollar. That would mean a US dollar will be traded at 100 taka, up from the existing 98 taka by the end of the calendar year.
To cope with the odds posing a serious threat to the macroeconomic stability, the Bangladeshi government has already approached global lenders including the International Monetary Fund (IMF) for loans to build a buffer amid dwindling foreign exchange reserves.
IMF has confirmed that it has reached a staff-level agreement with Bangladesh that will pave the way for the release of the much-awaited $4.5 billion in loan support.
Hasina urged all in Bangladesh to work together in growing more food last month, bringing every inch of land into cultivation to protect the country from possible global famine or food crisis.
As famine tensions run high in the country since Hasina's statement, she said on Friday that Bangladesh has enough reserves to cover the import cost for five months and assured that there won't be any crisis of consumer goods in the country which is apparently in a serious economic crisis triggered by the Russia-Ukraine conflict and reckless rate hikes of the US causing world economic earthquake.
The ballooning US debt is spilling over to many countries around the world and countries like Bangladesh have felt the pinch of the US Federal Reserve's aggressive interest rate hikes, a leading Bangladeshi economist has warned.
With the US national debt already exceeding 31 trillion dollars and due to the US rate hikes, the global economy has shrunk amid dire problems including currency devaluation, inflation and food crisis, Md Aynul Islam, general secretary of the Bangladesh Economic Association (BEA) told Xinhua earlier this month.

Bangladesh squeezes imports of luxury items amid economic crisis

DHAKA - In an apparent bid to conserve eroding forex reserves, Bangladeshi prime minister Sheikh Hasina has directed the country's relevant authorities to squeeze imports of luxury items.

global.chinadaily.com.cn

 

[Skull and Bones]

Bunch of lies, our @Bilal9 cannot start his day without a glass of Dom Perignon and premium sturgeon caviar for breakfast. You can tell his blood alcohol level from his posts.

 

[mmr]

Asian tiger lol

 

[EasyNow]

Bangladesh squeezes imports of luxury items amid economic crisis​

Xinhua | Updated: 2022-11-28 15:51

DHAKA - In an apparent bid to conserve eroding forex reserves, Bangladeshi prime minister Sheikh Hasina has directed the country's relevant authorities to squeeze imports of luxury items.
Sheikh Hasina, however, stressed the need for importing more essentials. She gave the directives at a secretary-level meeting held in the Bangladeshi capital Dhaka on Sunday.
Bangladeshi cabinet secretary Khandker Anwarul Islam briefed journalists about the premier's directives after the high-profile meeting.
Hasina asked the country's commerce ministry to increase import tariffs on 40 luxury goods to discourage the import of such products and improve the dollar liquidity in the forex market earlier this month.
Bangladesh's forex reserves reached $34.10 billion on Nov 23, declining from $34.30 billion on Nov 17, showed the latest Bangladesh Bank (BB) data.
Against this backdrop, the central bank of Bangladesh is reportedly contemplating changing the exchange rate of the Bangladeshi currency taka against the US dollar. That would mean a US dollar will be traded at 100 taka, up from the existing 98 taka by the end of the calendar year.
To cope with the odds posing a serious threat to the macroeconomic stability, the Bangladeshi government has already approached global lenders including the International Monetary Fund (IMF) for loans to build a buffer amid dwindling foreign exchange reserves.
IMF has confirmed that it has reached a staff-level agreement with Bangladesh that will pave the way for the release of the much-awaited $4.5 billion in loan support.
Hasina urged all in Bangladesh to work together in growing more food last month, bringing every inch of land into cultivation to protect the country from possible global famine or food crisis.
As famine tensions run high in the country since Hasina's statement, she said on Friday that Bangladesh has enough reserves to cover the import cost for five months and assured that there won't be any crisis of consumer goods in the country which is apparently in a serious economic crisis triggered by the Russia-Ukraine conflict and reckless rate hikes of the US causing world economic earthquake.
The ballooning US debt is spilling over to many countries around the world and countries like Bangladesh have felt the pinch of the US Federal Reserve's aggressive interest rate hikes, a leading Bangladeshi economist has warned.
With the US national debt already exceeding 31 trillion dollars and due to the US rate hikes, the global economy has shrunk amid dire problems including currency devaluation, inflation and food crisis, Md Aynul Islam, general secretary of the Bangladesh Economic Association (BEA) told Xinhua earlier this month.

Bangladesh squeezes imports of luxury items amid economic crisis

DHAKA - In an apparent bid to conserve eroding forex reserves, Bangladeshi prime minister Sheikh Hasina has directed the country's relevant authorities to squeeze imports of luxury items.

global.chinadaily.com.cn

Isn't that common sense during a global recession? Why on earth should the govt allow forex to be spent on unnecessary imports??

 

[epebble]

Isn't that common sense during a global recession? Why on earth should the govt allow forex to be spent on unnecessary imports??

If food and fuel can be guaranteed, the people on the street will not erupt. That is the first order of business for any sane government. Sri Lanka melted down once fuel shortages cropped up.

 

[Imran Khan]

Isn't that common sense during a global recession? Why on earth should the govt allow forex to be spent on unnecessary imports??

there is any other way sir ? imports are must to survive in today world

tell us what is the porpuse of forex reserves if you can not use them ? and what is import which should be avoid in top 10 ?

If food and fuel can be guaranteed, the people on the street will not erupt. That is the first order of business for any sane government. Sri Lanka melted down once fuel shortages cropped up.

almost 80% of imports are important sir only food and fuel are not enough .

 

[EasyNow]

there is any other way sir ? imports are must to survive in today world

tell us what is the porpuse of forex reserves if you can not use them ? and what is import which should be avoid in top 10 ?

View attachment 901183


almost 80% of imports are important sir only food and fuel are not enough .

You don't see a difference between luxury goods and other imports?

Bangladesh is a small land mass - we can't produce enough of anything - raw materials, cotton, steel.

No one understands better than BD that imports are important - that's exactly why we need to stop imports of unnecessary items and spend forex on necessities

 

[Imran Khan]

You don't see a difference between luxury goods and other imports?

Bangladesh is a small land mass - we can't produce enough of anything - raw materials, cotton, steel.

No one understands better than BD that imports are important - that's exactly why we need to stop imports of unnecessary items and spend forex on necessities

your top 10 imports are necessary only a small portion may be 5% are unnecessary

 

[epebble]

there is any other way sir ? imports are must to survive in today world

tell us what is the porpuse of forex reserves if you can not use them ? and what is import which should be avoid in top 10 ?

View attachment 901183


almost 80% of imports are important sir only food and fuel are not enough .

In a crisis, belt tightening is needed. Food, fuel, raw materials for export-oriented industries, lifesaving medicines etc., are all needed. Things that can be postponed: Luxury items, jewelry, gold, consumer electronics and parts thereof, foreign exchange for foreign travel, private motor vehicles and parts thereof etc., Name of the game is: If some import does not earn foreign exchange (by value-add export) and is not needed to survive, it can be postponed to another day.

 

[UKBengali]

Excellent decision by BD government but it has been doing this for around the last 6 months.

This article is a bit late in the day.

Squeeze unnecessary imports in order to keep the essentials of the economy functioning and once the world is over the current economic headwinds then the policy can be reversed.

BD is on course to grow by 6% when a lot of developed countries are likely to be in recession and that is a good place to be in.

 

[BananaRepublicUK]

Excellent decision by BD government but it has been doing this for around the last 6 months.

This article is a bit late in the day.

Squeeze unnecessary imports in order to keep the essentials of the economy functioning and once the world is over the current economic headwinds then the policy can be reversed.

BD is on course to grow by 6% when a lot of developed countries are likely to be in recession and that is a good place to be in.

Hasina followed the same set of austerity policies during covid.

Whereas Modi was gung-ho and India suffered a covid genocide.

I see the same arrogance amongst Indians now.

Those who do not learn are destined to suffer another genocide.

 

[UKBengali]

Hasina followed the same set of austerity policies during covid.

Whereas Modi was gung-ho and India suffered a covid genocide.

I see the same arrogance amongst Indians now.

Those who do not learn are destined to suffer another genocide.

BD does have a need of huge amounts of imports in terms of foodstuffs, raw materials, energy(high prices) and industrial goods from primarily India, China and ME.

These imports are essential for the health of the economy and the well-being of the BD people.

People that want luxury goods like high-end iphones can wait a little while as these are not essential and cannot be allowed to deplete precious foreign reserves.

 

[mmr]

In a crisis, belt tightening is needed. Food, fuel, raw materials for export-oriented industries, lifesaving medicines etc., are all needed. Things that can be postponed: Luxury items, jewelry, gold, consumer electronics and parts thereof, foreign exchange for foreign travel, private motor vehicles and parts thereof etc., Name of the game is: If some import does not earn foreign exchange (by value-add export) and is not needed to survive, it can be postponed to another day.

The main problem is under and over invoicing lead to money laundering.

and fundamental week ness when it comes to get FDI as well failure to diversify the economy. After 3 decades bd still depend on same two main source, remittance from middle east and low value garments. unless these dont change it will keep getting worse.

there are barely any luxary itmes in bd....you can even count number of bmw or audi they have in the whole country. there are no gucci prada type of outlets at dhaka either...99.9 percent bd ppl cant afford luxury brands. so if you call powder milk and baby formula luxary then what to do....

 

[Bilal9]

Bunch of lies, our @Bilal9 cannot start his day without a glass of Dom Perignon and premium sturgeon caviar for breakfast. You can tell his blood alcohol level from his posts.

Dom Perignon is Haram and sturgeon caviar is borderline Maqrooh.

I live a simple clean life uncluttered with the fallacies of life that Hindu Fascists live. Plain water, almost no salt, neither sugar. I do get angered once in a while, trying to correct that fault.

Read the Qur'an sometime - you'll be amazed how straightforward the instructions for living a nice productive life is.

 

[Skull and Bones]

Read the Qur'an sometime - you'll be amazed how straightforward the instructions for living a nice productive life is.

I have read Bhagavad Gita, and that inspired me to grind on my research 14 hours a day, workout in gym 6 days a week, and getting bigger than the challenges I faced. And took me out from a small village to do my PhD from an elite university., and more so.

I do not aspire to live a simple life, where one is contend with driving a cab, or running a corner store. I came here to be in the top 1% and my faith has been alongside me in this journey so far, and even stronger.

Maybe you should give Bhagavad Gita a chance, then you may start working on your own betterment, and stop painting the picture of simplicity to hide your incompetence.