Dollar continues to be pricier vis-a-vis Taka in kerb market

[Indos]

With the raise of inflation as energy and commodities prices are increasing, better to keep Taka stable to keep majority people purchasing power. IMO Better focus on productivity rather than depreciation strategy, especially at this moment with higher energy and commodities prices. BD cannot avoid the inflation increases as BD doesnt have much oil, gas, coal and other important commodities. So the strategy should be to strengthen Taka instead of depreciating the value.

US will do tapering soon and it will raise USD value, not mentioning The Fed interest rate I think is already increased and possible increase of US gov bond to get some fund for their 1 trillion USD infrastructure project

 

[Jernail Sahib]

With the raise of inflation as energy and commodities prices are increasing, better to keep Taka stable to keep majority people purchasing power. IMO Better focus on productivity rather than depreciation strategy, especially at this moment with higher energy and commodities prices. BD cannot avoid the inflation increases as BD doesnt have much oil, gas, coal and other important commodities. So the strategy should be to strengthen Taka instead of depreciating the value.

US will do tapering soon and it will raise USD value, not mentioning The Fed interest rate I think is already increased and possible increase of US gov bond to get some fund for their 1 trillion USD infrastructure project

Agreed. "Increasing exports" by currency devaluation is a fool's paradise for a country like BD with low industrial base and resultant import dependency for basic goods. Currency depriciation will only benefit greedy, shamless large exporters in the short run but hurt everyone in the long run due to cyclical inflation triggered by increased fuel and food costs.. Currency stability is key.

 

[UKBengali]

"The value of the greenback, which crossed Tk 90 mark for the first time on Monday, further spiked by 20 paisa on Tuesday".

This is what is the present situation in the opening post and the actual value is Tk107.6 per dollar. This will shortly fall to Tk120 to a dollar, probably by December this year when BD will repay about $2.5 billion as against last year's $1.9 billion.


Don't feel good by comparing it with Pakistan today. Compare Bd with Pakistan about 8 years back.

No the value is 85 right now.

BD is still much better than Pakistan was 8 years ago.

 

[Pandora]

While external borrowing does contribute to increase BD's reserves in the short term (at the expense of long term drainage), it is not the biggest contributor. Bangladesh's main deficiency is its negative balance of trade which keeps hovering around $10 billion. The deficit is compensated for by remittance dollars for the most part but this comes at the expense of massive increase in "free money (money printed against unbound remittance without any increase in local production of good and services)" supply triggering inflation. This in turn forces BB to maintain high interest rates which hurts local manufacturing businesses and therefore acts as a barrier towards growth of export oriented industries.

I would prefer taka to keep hovering around that range to offer stsbility to the economy.

That is problem with Pakistan as well our CA deficit also stays around 5-10 billion on average making us revisit IMF every 5 years. High import and low export are a big contributing factor. I reckon same problem is plaguing Bangladeshi economy. CA deficit needs to be reduced but down side of it is that also will push down GDP growth. On the other hand taking loans to compensate will provide short term stability but it will cause currency downturn in long term if reserves are not maintained. For example sudden drop of 300-400 million via debt payment send very poor signal unless it is accommodated immediately by another source. It will be reoccurring cycle unless the main issue of CA deficit is addressed.

 

[UKBengali]

That is problem with Pakistan as well our CA deficit also stays around 5-10 billion on average making us revisit IMF every 5 years. High import and low export are a big contributing factor. I reckon same problem is plaguing Bangladeshi economy. CA deficit needs to be reduced but down side of it is that also will push down GDP growth. On the other hand taking loans to compensate will provide short term stability but it will cause currency downturn in long term if reserves are not maintained. For example sudden drop of 300-400 million via debt payment send very poor signal unless it is accommodated immediately by another source. It will be reoccurring cycle unless the main issue of CA deficit is addressed.

Please stop spamming this section with constant comparisons between BD and Pakistan. They are NOT at all the same or even in a similar situation.

BD Exports: 40 billion US dollars
BD Imports: 50 billion US dollars

Pakistan Exports: 25 billion US dollars
Pakistan Imports: 53 billion US dollars.

Do you see the absolute MASSIVE difference in the trade deficits between BD and Pakistan.

Also unlike Pakistan, BD has never taken out a loan to pay back an existing loan.

 

[Pandora]

Please stop spamming this section with constant comparisons between BD and Pakistan. They are NOT at all the same or even in a similar situation.

BD Exports: 40 billion US dollars
BD Imports: 50 billion US dollars

Pakistan Exports: 25 billion US dollars
Pakistan Imports: 53 billion US dollars.

Do you see the absolute MASSIVE difference in the trade deficits between BD and Pakistan.

Also unlike Pakistan, BD has never taken out a loan to pay back an existing loan.

Why dont you just fcuk off and stop quoting me? Did i tag you in my comment you fcuking nicompoop. I was having a debate with decent human being not waste if space like you.

 

[UKBengali]

Why dont you just fcuk off and stop quoting me? Did i tag you in my comment you fcuking nicompoop. I was having a debate with decent human being not waste if space like you.

Your swearing has revealed your frustration at me showing you up for who you really are.

There is a thing called ignore but I showed you for the insecure person you really are.

Your attempts to put BD into the same bracket at Pakistan will simply not change the reality that where Pakistan is BD will never get to. It will not give you the comfort you seek.

PS - My reply was not to debate you but to trash your nonsensical post.

 

[Pandora]

Your swearing has revealed your frustration at me showing you up for who you really are.

There is a thing called ignore but I showed you for the insecure person you really are.

Your attempts to put BD into the same bracket at Pakistan will simply not change the reality that where Pakistan is BD will never get to. It will not give you the comfort you seek.

PS - My reply was not to debate you but to trash your nonsensical post.

Frustration my arse you accused me of spamming. If you cant digest some comment tgen ignore them but dont you dare call me spammer or try to be a smart arse. I am entitled to my opinions and i dont need your permission so take a hike.

 

[UKBengali]

Frustration my arse you accused me of spamming. If you cant digest some comment tgen ignore them but dont you dare call me spammer or try to be a smart arse. I am entitled to my opinions and i dont need your permission so take a hike.

Dude.....

At least back up with your points with hard data and then I would have no reason to accuse you of spamming.

If you give simply opinions without any quantitative backup, then expect your posts to be taken as worthless.

 

[Pandora]

I

Dude.....

At least back up with your points with hard data and then I would have no reason to accuse you of spamming.

If you give simply opinions without any quantitative backup, then expect your posts to be taken as worthless.

No Thanks i am sure that there is bengali out here who is not a condescending douche. If you wanted me to provide stats you could have asked. Any ways i have no interest in engaging with you in debate.

 

[UKBengali]

No Thanks i am sure that there is bengali out here who is not a condescending douche. If you wanted me to provide stats you could have asked. Any ways i have no interest in engaging with you in debate.

Actually I asked before but you chose not to.

Reason: You have none and are trying to put BD into a similar bracket as Pakistan for whatever reason only you know.

If you want to be taken seriously then back up your opinions with hard data.

 

[Bilal9]

Guys let's not fight, please calm down, we are here to debate and find a reasonable solution and viewpoint.

Debate the issues, don't attack posters please. We are here to respect everyone's opinion, not belittle them.

 

[Jernail Sahib]

@Pandora @UKBengali please lay off the attacks. As members all of us have the right to post our opinions - if you don't like a post just ignore it.

 

[Abu Shaleh Rumi]

Today, the mind of deceased finance minister Saifur Rahman is more needed.

He was a Legend!

 

[bluesky]

Yes, no extravagance!! The borrowing is already $97 billion. Within a short time, the country will have to repay $6 billion per year to repay this amount with interest.

It is big unless every year many FDIs do not reach our shore.