ME conflict may affect BD economy

PM Hasina tells JS

FE Team | Published: May 09, 2024 00:09:48

Prime Minister Sheikh Hasina Wednesday said in parliament that the conflicting situation in the Middle East may affect the economy of Bangladesh.
"It can be presumed that the brunt of the conflicting situation in the Middle East may affect the social, political, and economic aspects of Bangladesh as well as the whole world. This conflict may have some effect on the country's economy," she said.
The premier made this apprehension while responding to a question during the Prime Minister's scheduled question answer session in parliament, reports BSS.
Sheikh Hasina said that there is the possibility of rise of the inflation slightly due to the instability in the world market, inconsistency in market management and the increase in global fuel prices.
In addition, the disruption of the commodity supply chain due to the conflicting situations may increase transportation costs related to exports primarily to Iran or neighbouring regions, she observed.
The Premier also said that the recent fall in the exchange rate of the Taka is having an adverse effect on domestic inflation.
"In this case, the crawling peg based currency exchange policy will soon be adopted to bring stability to the foreign currency exchange rate."
She hoped that this corridor-based system is expected to prevent abnormal fluctuations in foreign exchange rates and as a result, it will also help control inflation.
She noted that "exporters may face tougher competition for this, as the cost of manufacturing and supplying increases."
The Leader of the House said that she has directed all concerned ministries or departments to keep eyes on the ongoing events in the Middle East and determine their own course of actions. "I've given instructions to take necessary preparations, especially considering that this conflict might be prolonged and accessing impact of that over the sectors," she added.