"We are in the process of initiating a plan to introduce a crawling peg system, which would be a step toward a more flexible exchange-rate regime", said Abdur Rouf Talukder, Chairman of BIBM Governing Board and Governor of Bangladesh Bank.
He said there should be more flexibility in our exchange rates, but at the same time, we must ensure that any effort in this regards would not bring any destabilizing influence on domestic economy,
Governor was addressing the '3rd AKN Ahmed Memorial Lecture' on Central Banking, held on Thursday at the Bangladesh Institute of Bank Management (BIBM).
BIBM organized the AKN Ahmed Memorial Lecture for third time styled Central Banking at its office at Mirpur in the capital on Thursday.
The Governor further said in maintaining macroeconomic and financial stability, the inflation and the sharp depreciation of the taka against the US dollar need to be addressed quickly.
"Monetary policy is working to relieve price pressures, and we need to stay vigilant. Although the cost-push pressure induced by supply-side shocks has considerably impacted headline inflation through volatile food prices, the headline inflation has eased recently from its highly elevated level", Governor pointed out.
He said this shows that our monetary policy actions in the form of higher interest rates together with import moderation initiatives is working in restraining demand in the economy.
Nevertheless, inflation is still too high, and underlying inflationary pressures persist. Bangladesh Bank with mix of other government policies came up with pro-active supply smoothening interventions in mitigating the impact of food price shocks and committed to do so in coming months ahead of holy Ramadan. We need to take these initiatives on a regular basis to do their work.
Professor Dr. Mohammed Farashuddin, former Governor of Bangladesh Bank and Chief Advisor of East West University delivered keynote speech in this program.
BIBM Director General Dr. Md. Akhtaruzzaman made address of welcome. Md. Shihab Uddin Khan, Associate Professor and Director (Research, Development & Consultancy) of BIBM gave vote of thanks of the program.
Eight Masters in Bank Management (MBM) students were awarded Tk 50,000 and an honorary crest as AKN Ahmed Talent Award for good results on the occasion.
Former Governors, Deputy Governors, Executive Directors of Bangladesh Bank, Managing Directors of Banks, faculty members of BIBM, senior bank executives, academicians, media representatives participated in the third AKN Ahmed Memorial Lecture program.
Late AKN Ahmed was the second Governor of Bangladesh Bank. He served Bangladesh Bank as a Governor from November 1974 to July 1976.
