Kazi Azizul Islam and Asif Showkat <\/span>
\nEconomists and commodity importers on Wednesday suggested that the government should be careful before framing any policy to allow depreciation of taka, as it may fuel inflation and erode the customs revenue.
\nIf the government wants to encourage exporters and wage-earners abroad, they could be offered some other interim incentives, they said.
\n\u2018If taka is devalued [against dollar], import costs will rise,\u2019 said Bangladesh Bank chief economist Mustafa K Mujeri in a BB report.
\n\u2018The government should in no way opt for any measures which will depreciate the value of taka now; such steps will hinder the falling trend of commodity prices and push inflation up again,\u2019 said former Chittagong chamber president Saifuzzaman Chowdhury Javed.
\nJaved, whose company imports raw-materials for manufacturing cement, shoe and aluminum fabrications, suggested for the government to offer alternative fiscal incentive packages for exporters, in case it wants to support them.
\nA number of Khatunganj, Chittagong-based importers of edible oil, wheat and lentils and sugar, expressed to New Age the apprehension that any depreciation of taka would jack up costs of the next procurements by the commodity importers.
\n\u2018A weaker taka will further depress the commodity importers, who are already burdened with huge losses in their stocks during the recent months due to abrupt falls in commodity prices,\u2019 said a top executive at a Chittagong-based oil refiner.
\nThe Centre for Policy Dialogue executive director professor Mustafizur Rahman also offered cautious observations on possible outcomes of a devaluation of taka.
\n\u2018It is very hard to analyse how much the exporters will be benefited by a weaker taka and how much the other sectors will suffer,\u2019 said Mustafiz.
\n\u2018Before taking any policy to trigger depreciation of taka, the government should remain cautious and study the situation thoroughly.\u2019
\nKM Jamshedduzzaman, a former executive director of the Central Bank, analysed that most of the monetary indices now justify that the exchange
\nvalue of taka, at the present rates, is at the right position.
\n\u2018As it is floated, so the government cannot devalue the taka directly,\u2019 says Jamshed, who, however, noted \u2018It will be wise if the Bangladesh Bank and the government observe the trends for a long time before going for depreciation of taka.\u2019
\nBangladesh Institute of Development Studies research director Zaid Bahkt said in the current circumstance, the government should not go for a devaluation of taka against dollar, as it could have negative impacts on the local inflation rate.
\n\u2018The government could give assistance to local exporters through effective port services, cash incentives, low-cost gas and electricity and many other ways,\u2019 he said.
\nZaid suggested that finance minister AMA Muhith should be more cautious while talking with the media on sensitive issues like exchange rate. \u2018The market can become unstable, if finance minister talks irresponsibly,\u2019 he warned.
\nAnnisul Haq, president of the country\u2019s apex trade body, the FBCCI, however, told New Age that he could apprehend devaluation of taka against dollar as the country\u2019s trading partners have already lowered the value of their currencies.
\n\u2018If the government does not devaluate taka against dollar, it should offer special exchange rates and incentives to the exporters,\u2019 the chief of Federation of Bangladesh Chambers of Commerce and industry suggested.<\/p>\n

Courtesy: newagebd.com<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Kazi Azizul Islam and Asif Showkat Economists and commodity importers on Wednesday suggested that the government should be careful before framing any policy to allow depreciation of taka, as it may fuel inflation and erode the customs revenue. If the government wants to encourage exporters and wage-earners abroad, they could be offered some other interim … Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_editorskit_title_hidden":false,"_editorskit_reading_time":0,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","footnotes":""},"categories":[4],"tags":[],"yoast_head":"\n