Spiralling food grain prices correspond to rising int’l fuel prices: Kamal

Finance Minister AHM Mustafa Kamal has said the prices of food grains are increasing in the local market along with rising fuel oil prices in the international market.

His remarks came following a couple of meetings of the Cabinet Committee on Economic Affairs and Government Procurement, on Wednesday. Both the meetings were chaired by him.

While dwelling on increasing inflationary pressure, he said, “At present, the inflation rate corresponds to our expectations and what we had projected.”

He, however, said the overall inflation did not increase in the country. “We have been reviewing the updated inflation rate regularly. So far there are no problems there.”

The minister came up with his version on rising food grain prices and said “As the price of fuel is rising in the international market, so is the price of food grains here.”

The finance minister explained that the government has nothing to do with the rising dollar prices as well.

“We have not fixed the dollar price in the local market. It is not fixed by Bangladesh Bank. Prices of the US dollar depend on its demand and supply in the bank, financial institutions and the (open) market.

If demand is high and supply is low, the value of the dollar will rise. It adjusts naturally in the market.

It is happening the way we have been doing (managing) it in the past. I don’t know what the International Monetary Fund (IMF) has said on this.”

He said the IMF can offer advice, but it can’t tell Bangladesh what decision to make.

“We think that our own currency is flexible in the country. When the banks have more US dollars, Bangladesh Bank can buy some dollars. It is also done in other countries in a similar manner.”

He said in some other countries prices of dollars are fixed.

As the post-lockdown foreign travel increases, it puts additional pressure on the kerb market, causing prices to go up. The prices of imported goods also went up, recently, reports said.

The exchange rate for the US dollar in the open or kerb market has exceeded Tk 90 for the first time ever. Bangladesh travellers, especially the ones who visit foreign hospitals, are worried over rising greenback prices.