Bangladesh Bank governor Dr Atiur Rahman on Tuesday claimed that the country’s financial sector has remained stable and there is nothing to worry about Bangladesh’s economy.

“Despite global economic recession, country’s financial state has remained stable due to different policy measures taken by the central bank and the government. I think there is nothing to be worried over Bangladesh’s economy,” he said.

The central bank governor made the remarks at an opinion exchange meeting with the leaders of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) at the Bangladesh Bank conference room.

Bangladesh Bank deputy governors M Nazrul Huda, Ziaul Hasan Siddiqui and Murshid Kuli Khan, its executive director M Jahangir Alam, FBCCI president AK Azad and its directors were present.

Dr Atiur said the actual GDP (gross domestic product) growth would reach near 7 percent in the current fiscal and cross 7 percent in the next year.

He said the central bank has been repaying loans to the lenders timely as per conditions. “Remittance inflow and RMG export are playing a positive role behind such repayment of loans.”

The BB governor said the remittance inflow is also playing a positive role in the country’s balance of payment.

He said: “We’ve almost attained self-sufficiency in food addressing 96 percent of total demand. Besides, sufficient foods are being imported. So, stability of food prices will make significant contribution to help contain inflation.”

Dr Atiur termed as temporary the adjustment pressures faced by the businessmen and entrepreneurs following various measures taken relating to monetary policy and credit policy. These steps were taken to ensure economic stability.

“These are not the indicators of weakness of economy; rather these are growth-related pain,” he said.

The meeting widely discussed the issue of withdrawal of central bank’s ceiling on the highest bank interest while providing loans.

Meanwhile, Bangladesh Bank (BB) on Tuesday ruled out a liquidity crisis in the country’s baking sector saying that the speculation is not based on fact.

The banking sector currently has liquidity worth over Tk 240.57 billion that is maintaining uptrend in the last few weeks, according to the central bank in its latest review released on Tuesday.

The central bank observed that the rate of call money interest remained normal, and the call money rate was highest 6.25 percent in the private sector banks. Meanwhile, the BB has been continuing supplying liquidity to the banks through Repo.

The BB also said that the banks are not running short of foreign currency. “The claim of foreign currency crisis in the banks is not true. The current foreign reserve is US$ 10792 million.”

News: Daily Sun/Bangladesh/ Apr-06-2011