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Our economy best in S Asia: Governor
Our economy best in S Asia: Governor | Business | bdnews24.com
Fri, Oct 19th, 2012 12:54 am BdST
Abdur Rahim Harmachi
Chief Economics Correspondent
Dhaka, Oct 18 (bdnews24.com)The central bank has claimed Bangladesh's economy is faring better than other South Asian economies.
"Bangladesh is the only country in South Asia whose all macro-economic indicators are positive," Bangladesh Bank Governor Dr Atiur Rahman told bdnews24.com in an interview on Thursday.
Dr Rahman, who came back home after attending the annual meeting of the World Bank and IMF in Tokyo, said officials of the two lending agencies were happy with the state of the economy.
In a recent forecast, the IMF said Bangladesh could achieve a 6.1 percent GDP growth in the current financial year (FY) against a 3.5 percent growth in the world economy. In 2011-12 FY, the economy grew at 6.3 percent.
The Governor expects economic condition to only improve in the days ahead.
He was also pleased with the foreign exchange reserves: "Thursday (Oct 18) is a historic day for Bangladesh economy as the country's reserves reached $12 billion mark on the day. Import costs of five months can be met with the reserves."
Comparing forex reserves between the Awami League's current and previous terms in office, Rahman said: "During the previous term, the reserves dipped to $1 billion. And this term, the reserves swelled by $1 billion in only one month."
He attributed the increase in the reserves to the central bank's monetary policy that discourages import of unnecessary and luxury products.
He tried to justify the claim that the economy was doing well, saying the government was borrowing less from the banking system. He pointed out that inflation eased to a 'tolerable level'.
"Food inflation also dropped substantially thanks to bumper crop production over last several years, though it's increasing worldwide."
According to the Bangladesh Bureau of Statistics, in September overall inflation on a point-to-point basis stood at 7.39 percent in old calculation (1995-96 FY taken as base year). It was 4.96 percent in the new calculation (2005-96 as base year).
Food inflation in the month stood at 6.16 percent in the old calculation method and at 1.7 percent in new method.
The Governor said foreign currency exchange rate was stable. "Our neighbour India has been seeing instability in foreign currency exchange rate for quite some time. The value of rupee is dipping. But we have been able to keep up the value of our currency."
He said the central bank's supervision has made it possible and mentioned Bangladesh was buying dollar whenever its flow increased in the market to keep the exchange rate stable.
A unit of dollar was exchanged at Tk 81.25 in the interbank forex market on Thursday. Dollar exchange rates have been ranging from Tk 81.25 to 81.75 for the last six months.
Rahman termed 'very good' the 12 percent growth in revenue collection during July-Sept period.
Asked when the second tranche of IMF's Extended Credit Facility (ECF) would be disbursed, he said: "I had discussion with the IMF Managing Director. I hope we will get the second tranche of ECF in early November."
The IMF announced that it would extend $1 billion credit to Bangladesh under the ECF. The global lender released the first tranche of $144 million a few months back and a further $150 million was supposed to be released this month.
But the IMF is delaying disbursement as Bangladesh is yet to reform the banking and some other sectors as committed.
bdnews24.com/arh/ssr/bd/2349h
Our economy best in S Asia: Governor | Business | bdnews24.com
Fri, Oct 19th, 2012 12:54 am BdST
Abdur Rahim Harmachi
Chief Economics Correspondent
Dhaka, Oct 18 (bdnews24.com)The central bank has claimed Bangladesh's economy is faring better than other South Asian economies.
"Bangladesh is the only country in South Asia whose all macro-economic indicators are positive," Bangladesh Bank Governor Dr Atiur Rahman told bdnews24.com in an interview on Thursday.
Dr Rahman, who came back home after attending the annual meeting of the World Bank and IMF in Tokyo, said officials of the two lending agencies were happy with the state of the economy.
In a recent forecast, the IMF said Bangladesh could achieve a 6.1 percent GDP growth in the current financial year (FY) against a 3.5 percent growth in the world economy. In 2011-12 FY, the economy grew at 6.3 percent.
The Governor expects economic condition to only improve in the days ahead.
He was also pleased with the foreign exchange reserves: "Thursday (Oct 18) is a historic day for Bangladesh economy as the country's reserves reached $12 billion mark on the day. Import costs of five months can be met with the reserves."
Comparing forex reserves between the Awami League's current and previous terms in office, Rahman said: "During the previous term, the reserves dipped to $1 billion. And this term, the reserves swelled by $1 billion in only one month."
He attributed the increase in the reserves to the central bank's monetary policy that discourages import of unnecessary and luxury products.
He tried to justify the claim that the economy was doing well, saying the government was borrowing less from the banking system. He pointed out that inflation eased to a 'tolerable level'.
"Food inflation also dropped substantially thanks to bumper crop production over last several years, though it's increasing worldwide."
According to the Bangladesh Bureau of Statistics, in September overall inflation on a point-to-point basis stood at 7.39 percent in old calculation (1995-96 FY taken as base year). It was 4.96 percent in the new calculation (2005-96 as base year).
Food inflation in the month stood at 6.16 percent in the old calculation method and at 1.7 percent in new method.
The Governor said foreign currency exchange rate was stable. "Our neighbour India has been seeing instability in foreign currency exchange rate for quite some time. The value of rupee is dipping. But we have been able to keep up the value of our currency."
He said the central bank's supervision has made it possible and mentioned Bangladesh was buying dollar whenever its flow increased in the market to keep the exchange rate stable.
A unit of dollar was exchanged at Tk 81.25 in the interbank forex market on Thursday. Dollar exchange rates have been ranging from Tk 81.25 to 81.75 for the last six months.
Rahman termed 'very good' the 12 percent growth in revenue collection during July-Sept period.
Asked when the second tranche of IMF's Extended Credit Facility (ECF) would be disbursed, he said: "I had discussion with the IMF Managing Director. I hope we will get the second tranche of ECF in early November."
The IMF announced that it would extend $1 billion credit to Bangladesh under the ECF. The global lender released the first tranche of $144 million a few months back and a further $150 million was supposed to be released this month.
But the IMF is delaying disbursement as Bangladesh is yet to reform the banking and some other sectors as committed.
bdnews24.com/arh/ssr/bd/2349h
