bdnews24.com, Dhaka
Finance minister AMA Muhith has said that Bangladesh is still insulated from global economic downturn.
“IMF has predicted that the GDP of all countries will come down alarmingly due to global recession, but in spite of this global gloom, our economy is still in good condition,” Muhith said on Tuesday after a meeting on finance and currency.
The minister said Bangladesh’s economic indexes were still sound.
“GDP growth is forecast to be above 6 percent for FY 2008-09,” he said. The International Monetary Fund slashed its 2009 forecast for global growth on Tuesday to just 0.5 percent, the weakest year since World War Two, from a November estimate of 2.2 percent.
The Fund said global economy has taken a “sharp turn for the worse”. Muhith told reporters Tuesday that a presentation would be made at the next session of parliament on the overall economic situation of the country.
The finance minister also assured that the government would not interfere needlessly with exchange rates.
Talking about the Taka-Dollar rate, the minister said, “The government will not interfere in this matter and rates will be determined by the market system.”
India, China, Pakistan and other countries have devalued their currencies against the dollar, in the face of the global crisis. But Muhith said such a step was not necessarily foreseen as Bangladesh has not faced any obstacles in the export sector as yet. “But, situations can change and, for that, we are keeping a sharp eye on the global situation,” said the finance minister. The minister also said that the cabinet would soon form a special task force on steps to counter the global recession.
“In the next 15 to 20 days, a meeting will also be held with representatives of business organisations on facing the global crisis,” he said. After a meeting with BTMA (Bangladesh Textile Mills Association), on Sunday, the minister had said, “The devaluation of the Taka is now an important issue, we are trying to hold on to its value.” But, he also feared that with the ongoing global crisis, maintaining the Taka’s value would not be possible for long. The government owned Sonali Bank gives an exchange rate of Tk 69.35 per dollar and the bank buying rate is Tk 68.40. The exchange rate of currencies was fixed under the floating exchange rate system on May 31, 2003. Since then the government has not intervened in exchange rates.
Tuesday’s meeting was presided over by commerce minister Faruk Khan. The prime minister’s adviser on finance and planning Mosihur Rahman, Bangladesh Bank governor Salahuddin Ahmed, finance secretary Moha-mmad Tareq, commerce secretary Feroz Ahmed, planning secretary Zafar Ahmed Chow-dhury, NBR chairman Mohammad Abdul Majid and others were present.
Courtesy: thebangladeshtoday.com
