Forex reserves, exchange rate, inflation key challenges

Fazle Kabir, the outgoing governor of the Bangladesh Bank (BB), sees containing rising inflation as well as keeping foreign currency reserve and exchange rate at a tolerable level as the key challenges for his successor.
"I am leaving three challenges - in the areas of inflation, forex reserve and exchange rate - to the incoming governor that need to be well addressed," he said.
He made the observation at his farewell, hosted by the BB officials and employees on his last day as the central bank governor.
The central bank has been playing an instrumental role to overcome the challenges, the outgoing BB governor also said.
"These works need to be continued - whatever media, economists and think-tanks say in favour of lifting the lending rate capping of 9.0 per cent."
He noted that after releasing the monetary policy statement (MPS), they (media, economists and think-tanks) are now saying that enhancing the repo rate by 50 basis points to 5.50 per cent would not be fruitful, if the lending rate capping is not withdrawn.
"I don't know their logic of saying it unfruitful. I think the decision we took is right and logical. I hope it will be continued."
Mr. Kabir joined as the BB governor on March 20, 2016, following a sensational foreign reserve heist of US$ 101 million from the central bank's accounts with the Federal Reserve of New York.
Remembering his joining at the BB, he said he went to the United States to attend a board meeting as the chairman of Sonali Bank Limited, where he got the news of being appointed as the central bank guardian.
After returning to Dhaka, journalists asked him about his prime tasks as the governor.
"I told them that restoring image of the BB and boosting confidence of its staff members. The gathering here and their love prove that I did it."
Hailing all the central bank officers and employees, the governor said he received intensive cooperation from them in discharging his duties.
Former secretary and wife of Mr. Kabir, Mahmuda Sharmeen Benu, Secretary of Financial Institutions Division (FID) Sheikh Mohammad Salim Ullah, and BB deputy governors Ahmed Jamal, Kazi Sayedur Rahman, A K M Sajedur Rahman Khan and Abu Farah Md. Nasser, among others, also spoke on the occasion.

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