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Editorial

BB steps keep forex market stable

Take measures to increase the number of export destination


Bangladeshpost
Published : 14 Jun 2021 08:11 PM | Updated : 15 Jun 2021 12:43 AM

Country’s resurgent economy in all fronts is nothing but the fruits of holistic approach taken by the government and Bangladesh Bank (BB).     We have set example before the world about how to keep the economy flourishing even in the crisis time.

In that continuity, Bangladesh Bank’s decision to buy a record amount of US dollars from commercial banks has kept the foreign exchange (Forex) market stable. 

According to a report published in this daily on Monday, BB bought a record amount of around $7.7 billion US dollar from the banks during July-May period in the current fiscal year to keep the foreign exchange market stable amid the pandemic.


Government should take more measures to

 increase the number of export sources which 

will lead to stronger trade surplus


Experts opine that, exporters and remitters reaped benefits from the foreign exchange market by getting higher dollar rate as BB continued its intervention in the market to prevent devaluation of greenback. It also helped boost inflow of remittance and export earnings.

The timely measure of the Central Bank to purchase the excess supply of greenback decreased the value of Bangladeshi currency. If this did not happen and the value of currency appreciated against dollar then it would have negatively affected the exporters and remitters.

However, amid the pandemic the main thing which helped to keep the market stable is the fascinating number of remittance inflow in the country. 

Rather than surging number of export earnings the spike in remittance inflow has really boosted the Forex market. But we have to be aware that this kind of remittance inflow might not continue indefinitely. Therefore, government should take more measures to increase the number of export sources which will lead to stronger trade surplus.