Inflation, unstable forex rate now major challenges: BB governor

Bangladesh Bank (BB) Governor Fazle Kabir on Saturday said the country’s banking sector is currently facing big challenges of inflation and unstable forex exchange rate in the post Covid-19 period.

“A huge trade deficit has been created due to these reasons. To deal with this, not only Bangladesh Bank, but all the government and the private commercial banks have to work collectively,” he said.

Fazle Kabir said this while addressing Al-Arafah Islami Bank Scholarship Awarding Ceremony as chief guest at the Officers’ Club in the city.

”We have imposed a number of restrictions on imports and if we refrain from importing luxury goods at this moment it will reduce the pressure on the forex reserves,” he said.

“In the case of LC opening, we have given some margins to comply with them. We are providing dollars directly from the central bank’s reserves to ease the crisis. It will continue. Besides, we have been given the opportunity to import necessary products including food, baby food, fertiliser, fuel and electricity, and other products. We are discouraging import of products that are not very necessary,” Kabir added.

Chairman of Al-Arafah Islami Bank Selim Rahman presided over the function. Managing Director and CEO of the bank Farman R Chowdhury, members of the board of directors, senior officials, scholarship recipient students and parents were also present on the occasion.

Under its social responsibility programme, Al-Arafah Islami Bank provided scholarships to 200 meritorious students who have passed HSC and equivalent examinations in 2019.