Banking sector facing big challenges, says central bank governor


FE Team | Published: May 28, 2022 18:04:05 | Updated: May 31, 2022 20:55:51


Banking sector facing big challenges, says central bank governor

Bangladesh Bank (BB) Governor Fazle Kabir on Saturday said the banking sector is currently facing big challenges of inflation and unstable foreign exchange rate in the post-Covid-19 period.

“A huge trade deficit has been created due to these reasons. To deal with this, not only Bangladesh Bank, but all the government and the private commercial banks have to work collectively,” he said at a ceremony at the Officers’ Club in the city, reports UNB.

”We have imposed a number of restrictions on imports and if we refrain from importing luxury goods at this moment it will reduce the pressure on the forex reserves,” he said.

“In the case of LC opening, we have given some margins to comply with them. We are providing dollars directly from the central bank's reserves to ease the crisis. It will continue. Besides, we have been given the opportunity to import necessary products including food, baby food, fertiliser, fuel and electricity, and other products. We are discouraging the import of products that are not very necessary,” Kabir added.

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