MCCI urges Bangladesh to stabilise forex reserves, manage inflation

In its January-March 2023 review on economic situation in Bangladesh, the trade body emphasised the need to ensure proper supply of electricity and gas and extending social safety net programmes.

Challenges faced by Bangladesh in the third quarter of fiscal 2022-23 include price hike of essential commodities, weak remittance inflow, shortfall in revenue collection, slow public expenditure, widening of current account deficit, depreciation of the taka, a decline in foreign exchange reserves, unemployment and low investment.

A significant increase in public and private investment is necessary to maintain competitiveness and generate further growth, MCCI pointed out.

Nevertheless, the economy has been showing some signs of improvement in the quarter under review, the chamber was quoted as saying by Bangladesh media outlets.

Foreign currency reserve is still somewhat in a satisfactory position but into a weaker trajectory. The exchange rate has long been remained stable but depreciated notably in recent months.

Exports may increase in the next three months and imports may increase slowly, the trade chamber predicted. Inflation, however, can be expected to go down slightly in Q4 FY23, it added.

Fibre2Fashion News Desk (DS)