Aziz discounts fallout from financial turmoil
Finance Adviser AB Mirza Azizul Islam said Monday the Bangladesh economy would not be adversely affected by the global financial recession as the country's financial sector is "well-managed".
An optimistic Mirza Aziz said the major parts of the economy such banking, remittances and ready-made garment exports had maintained an upward trend.
"The banking sector is strictly monitored so that the government can take immediate steps in case of any fallout from the global financial crisis," he said.
Aziz was speaking at a televised programme that highlighted the global economy and its links to Bangladesh, at Sonargaon Hotel as chief guest. Private television channel NTV and Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) jointly arranged the programme.
FBCCI President Annisul Huq moderated the discussion, which was broadcast live.
"Bangladesh exports mainly the basic RMG products. There are no risks of a fall in demand in the segment. The inflow of remittances will not fall as most Bangladeshi unskilled workers are employed in the Middle East," Aziz said.
"The economy may take a hit if the current global recession prolongs," the adviser said.
In the question-and-answer session, Aziz said the prices of petroleum products would be cut soon as global prices were on the decline.
Describing the global financial crisis as the crisis of confidence, Commerce Adviser Hossain Zillur Rahman said it was not the real crisis for developing countries such as Bangladesh as the country followed the "pragmatic economy".
"I don't think it's time to depreciate the local currency against the dollar. We can make the decision when we will sit together in a meeting at the end of the month to discuss the major economic sectors," he said.
Bangladesh Bank (BB) Governor Salehuddin Ahmed has said the reserves of the central bank are stable. The central banker said he had advised some private banks to streamline their accounts.
The BB has $5.7 billion in reserves whereas Pakistan's declined to $4.5 billion from $12 billion, Salehuddin said.
"I don't think the rise in exports depends only on the depreciation of the local currency against the dollar. We should also think of other factors before taking such an important decision," he said.
In the 1990s, Bangladesh had exported 300 varieties of products. The figure rose to 600 now, meaning huge diversification in exports, he said.
Chairman of the Centre for Policy Dialogue (CPD) Dr Rehman Sobhan termed the US financial recession "casino capitalism".
"In taking a political decision, one party should discuss with the leaders of the other political parties in parliament," said Sobhan, pointing to the expectations from the next elected political government.
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