Staff Reporter :
Country’s inflation rate will go up in view of the record high fuel price, which has already affected the people.
The exchange rate of the US dollar jumped to Tk 119 in the kerb market of Bangladesh on Wednesday.
According to traders, dollar prices have been increasing due to shortage of US dollars in the kerb markets.
There is an allegation that a section of people are hoarding US dollars illegally, anticipating that its price would increase substantially in the days to come due to the ongoing volatility in the foreign exchange market and persisting higher imports.
Meanwhile, prices of all daily commodities including transportation cost and fertilizer went up, which country’s people have been experiencing bitterly.
Country’s inflation will rise, said Finance Minister AHM Mustafa Kamal on Wednesday. Earlier, a week ago the Bangladesh Bureau of Statistics (BBS) had forecasted a data based on two months figure that showed inflation had slightly fallen to 7.48 percent.
The Finance Minister had said that inflation will cool down in the next two months immediate after the BBS report. The Ministry of Finance had earlier also projected that high inflation will prevail in the country until 2024.
“Prices of all commodities have been increasing after hiking the fuel price. We will continue our efforts to bring down the inflation rate,” the Finance Minister told this correspondent on Wednesday.
The government had a plan for taking measures for the country’s poor people, he said adding that the decision will be taken after discussing with the Prime Minister in this regard.
When asked regarding dollar crisis, he said, “We are trying to keep the forex market stable. Dollar rate is now in an unstable position across the globe. Those who are engaged in war and who are provoking the war are facing the same consequences.”
Replying to a query about the removal of treasury chiefs of six banks, Mustafa Kamal said, “There is a limit to preserve dollars in banks. If any bank’s dollar reserves beyond the limit, it must have done so for illegal business purposes.”
On 8 August, the Bangladesh Bank ordered the removal of treasury chiefs of six banks after finding evidence against them of making higher profits in trading dollars.
According to Bangladesh Bank sources, the banks include Dutch Bangla Bank, BRAC Bank, City Bank, Prime Bank, and Southeast Bank and multinational bank Standard Chartered Bank.
Domestic inflation of the country is expected to peak in the short term (3rd quarter of 2022) and abate later towards the end of 2023 with the projected easing of global commodity prices, according to a finance ministry report.
The country faced a massive dollar crisis as remittance dwindled and imports increased in comparison to exports in the post-Covid period. The price of the dollar hit the record at Tk119 in the open market on Wednesday. In the interbank currency market, the US dollar was being traded at Tk95 on Monday.
To control the manipulation of dollars in the open market, till 2 August, 80 money changers were raided and issued show cause notices against 42 organistations after found irregularities.
The Bangladesh Bank also ordered to suspend five money changers’ licenses.
On 17 May, the US dollar crossed the Tk100 mark for the first time in the country’s open market. Then it decreased. Later on 17 July, it crossed Tk100 mark again.
At the end of the last month, the price of the US dollar rose to Tk112.
In the interbank currency market, the US dollar was being traded at Tk95 on Monday. The Bangladesh Bank sold dollars to the banks at this rate to meet the government import bill.
On Sunday, the interbank rate was Tk94.70. At the beginning of May, the rate was Tk86.45.
