Slight taka appreciation won't affect exports: BB governor

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FE Report
Bangladesh Bank (BB) governor Salehuddin Ahmed said Monday the country's exports will remain unaffected by a slight appreciation of taka against US dollar. Nor will inflow of remittance be hampered for any reason thereof, he maintained.
"The Bangladesh Bank has no plan to help taka appreciate against US dollar. Even if there is any appreciation of taka by few paisas I think it will not affect the exporters and hamper inflow of remittance," he told a group of reporters after attending the Dutch-Bangla Bank Ltd (DBBL) fellowship distribution ceremony in the city.
When asked, Salehuddin said the central bank is offering $300 million to three commercial banks for financing import of petroleum products.
The BB governor said the foreign currency reserve will still remain at $5.0 billion level despite payment to the Asian Clearing Union.
Asked whether the BB favours maintaining such a reserve because the International Monetary Fund (IMF) wants, he said: "This is not true…The reason of such reserve of foreign currency is to make our monetary policy more effective." Foreign currency reserve of India now stands at $200 billion, he added.
The BB governor said the Bangladesh Petroleum Corporation (BPC) will incur more loss due to non-adjustment of oil price with that of the global market.
He said the recent price hike of oil in the global market will not immediately affect the economy of the country.
When asked about high prices of essentials, the BB governor said lower purchasing power is a cause of concern as this is likely to affect the poorest of the society, he said.
Regarding bringing in the money that was smuggled out of the country, he said; "We will discuss the matter on November 15."
Speaking at the fellowship distribution ceremony, the BB governor advised the scholarship recipients for dedicating to research.
He, however, stressed the need for providing more and more scholarship to the students of some areas, including agriculture, science and commerce.
Later, the BB governor gave away fellowship to 50 students, who are pursuing M Phil, Doctoral and post-doctoral degrees.
Each fellowship recipient will get Tk 5000 per month for the entire period of study/research.
Md Yeasin Ali, managing director, AHM Nazmul Quadir, additional managing director, and Mozammel Hossain Khan, coordinator of DBBL Foundation, of DBBL, spoke, among others, on the occasion.