Investor Presentaiton
Independent Review of
RBD
Bangladesh's Development
Prudent Exchange Rate Management:
Call of the Day
In view of the adverse implications of imported inflation on consumer
prices and purchasing power of fixed income earners, and to contain
import demand, the GoB and BB have taken a number of steps:
discouraging import of luxury items through higher L/C margin and
imposition of duties on selected items, on the one hand, and tariff rate
adjustments (reduction of VAT and duties on essential commodities) on
the other.
□ There is a need to coordinate Monetary Policy and Fiscal Policy,
particularly in view of the upcoming FY 2022-23 budget.
To address the adverse impacts of imported inflation, in view of Budget
FY 2022-23 the Government should go for (a) import duty adjustment,
(b) improvement of market management (from import stage to retail,
consumer and producer level, (c) use of strategic food stocks and OMS
and (d) strengthening of SSNPs, particularly programmes for food
distribution and cash transfer.
CPD (2022): State of the Bangladesh Economy in FY2021-22 (Third Reading)
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