Bangladesh's Development Independent Review
Independent Review of
RBD
Bangladesh's Development
External sector
Recommendations
Bangladesh Bank has taken four measures, such as halving the dollar
holding limit (Net open position- NOP) of banks, monetising 50% of dollar
holdings in Export Retention Quota (ERQ), halving the deposit limit as
ERQ and transferring foreign exchange funds of offshore banking units to
domestic banking units. While these are positive moves, but these will not
dent much into the problem
In the short term, tightening the imports should be the main strategy.
Priority should be given to the import of essential commodities and inputs
for production
Given the current situation, trade misinvoicing should be restrained at any
cost
There is an urgent need to revisit the various incentives prevalent in the
external sector
CPD (2022): Recent Challenges Facing the Bangladesh Economy: A Brief Overview
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