Taka appreciation may help curb inflation: BB governor

---

Bangladesh Bank governor Salehuddin Ahmed Monday admitted that taka appreciation against the dollar could help reduce soaring inflation rate and cast a positive impact in the economy, reports bdnews24.com.
Leading economists in the country have long been asking the central bank to appreciate the taka against the US dollars which is depreciating globally except in a few countries, including Bangladesh.
The government had earlier voiced opposition to such a move.
"Taka appreciation may not only reduce the inflation, but it will also have a positive impact on the overall economic activities," Salehuddin told reporters after addressing the ADB Economists' Conference 2007 at the Asian Development Bank office in Dhaka.
Inflation reached double digit at 10.1 per cent in July, 10.12 in August and 9.6 in September.
"Import will be smooth if the cost is reduced following appreciation," the central bank governor said.
"The appreciation of the local currency will also have positive effect on the import of raw materials and capital machin ery," he added.
However, he did not allude to an immediate appreciation of the taka.
Salehuddin presented a keynote paper on "Financial sector reforms in Bangladesh", saying no country can grow and improve its population's living standards in the absence of a well functioning and efficient financial sector.
Jonathan Dunn, resident representative of the International Monetary Fund in Bangladesh presented a paper titled "Monetary policy in Bangladesh: Challenges and options".
Country director of ADB Hua Du moderated the conference.