Investor Presentaiton
Independent Review of
RBD
Bangladesh's Development
External Sector: A Time of Unforeseen Volatility
and Unprecedented Pressure
Bangladesh's external sector has never been under so much pressure,
and has experienced so much volatility as in the recent past.
Trade deficit is anticipated to cross USD 30.0 billion mark, current
account deficit the USD 18.0 billion mark and the negative overall
balance crossing the USD 5.0 billion mark by the end of FY22.
The resultant drawdown on reserves, volume-driven export not catching
up with price-driven imports, and the negative growth in remittances had
led to significant uncertainties and speculative behavior in the exchange
rate market.
This has lead to, in the end, the significantly important policy shift after
about a decade, to free float from the managed float.
Bringing back stability in the exchange rate market and addressing the
adverse consequences of imported inflation will call for prudent
monetary management, and strategic fiscal management and the
coordination between the two.
CPD (2022): State of the Bangladesh Economy in FY2021-22 (Third Reading)
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