BB governor against blanket package to any sector
Thursday, 9 April 2009
FE Report
Bangladesh Bank Governor Dr Salehuddin Ahmed said Wednesday no blanket package should be offered to any sector since nothing like collapse of financial institutions as happened in the West has taken place in Bangladesh.
"Bangladesh doest not need [large-scale bailout or stimulus] package," he said while speaking at a seminar on 'Global Financial Crisis and Impact of Recession on Bangladesh' at the Independent University Bangladesh.
Those who would be really affected by the fallouts from the global crisis should be given necessary supports, he however said at the seminar organised by the university's School of Liberal Arts and Social Sciences.
The BB governor stressed the need for inward-looking development to significantly substitute the export markets of some products. He also sounded confident about retaining the flow of remittances in the coming months through regulatory and incentive measures to keep a healthy foreign exchange reserve.
He dispelled the complaints of complacency over Bangladesh's remaining largely unaffected by the global crisis despite risks involved in the next phase of effects of the recession.
He added that the Bangladesh Bank, in close cooperation with the finance ministry, was monitoring the situation to take measures. 'We are watchful but we don't want to give any bad signal,' he pointed out.
He saw a silver-lining in the flow of remittances in nine months of the current fiscal year, which stood at $7.29 billion compared to $7.9 billion of the entire 2007-08 fiscal.
'If the number of Bangladeshi people abroad comes down, I'll still be able to tap the remittances by increasing the official flow because 30 per cent to 40 per cent remittances still come through the unofficial channel,' said the governor.
Bangladesh, as the only country in South Asia, has seen a current account surplus and also a positive balance of payments with $$462 million as the latest surplus, he mentioned.
The central bank is trying to ensure adequate liquidity with the banks for distribution of both industrial and agricultural credits. 'We want to ensure there is an adequate credit flow to the productive sector; otherwise, business will come to a halt,' Salehuddin maintained.
Bangladesh Bank Governor Dr Salehuddin Ahmed said Wednesday no blanket package should be offered to any sector since nothing like collapse of financial institutions as happened in the West has taken place in Bangladesh.
"Bangladesh doest not need [large-scale bailout or stimulus] package," he said while speaking at a seminar on 'Global Financial Crisis and Impact of Recession on Bangladesh' at the Independent University Bangladesh.
Those who would be really affected by the fallouts from the global crisis should be given necessary supports, he however said at the seminar organised by the university's School of Liberal Arts and Social Sciences.
The BB governor stressed the need for inward-looking development to significantly substitute the export markets of some products. He also sounded confident about retaining the flow of remittances in the coming months through regulatory and incentive measures to keep a healthy foreign exchange reserve.
He dispelled the complaints of complacency over Bangladesh's remaining largely unaffected by the global crisis despite risks involved in the next phase of effects of the recession.
He added that the Bangladesh Bank, in close cooperation with the finance ministry, was monitoring the situation to take measures. 'We are watchful but we don't want to give any bad signal,' he pointed out.
He saw a silver-lining in the flow of remittances in nine months of the current fiscal year, which stood at $7.29 billion compared to $7.9 billion of the entire 2007-08 fiscal.
'If the number of Bangladeshi people abroad comes down, I'll still be able to tap the remittances by increasing the official flow because 30 per cent to 40 per cent remittances still come through the unofficial channel,' said the governor.
Bangladesh, as the only country in South Asia, has seen a current account surplus and also a positive balance of payments with $$462 million as the latest surplus, he mentioned.
The central bank is trying to ensure adequate liquidity with the banks for distribution of both industrial and agricultural credits. 'We want to ensure there is an adequate credit flow to the productive sector; otherwise, business will come to a halt,' Salehuddin maintained.