Dhaka mulls over using alternative payment method in financial transactions with Moscow if international gateway SWIFT blocks Russian banks following sanctions over the Ukraine war.
Finance Minister AHM Mustafa Kamal Thursday unveiled the plan on payment byway in the exigencies of the unfolding geopolitical complications.
He came up with such substitution idea in reply to newsmen after approving a proposal for import of 30,000 tonnes of muriate of potash (MoP) fertiliser from Russian state agency JSC Foreign Economic Corporation "Prodintorg" at a virtual meeting of the cabinet committee on government purchase.
Following last week's Ukraine invasion, many western nations have slapped various political
and economic sanctions on Russia. Moreover, many Russian banks have been deterred from the SWIFT payment system which is used for financial transactions worldwide. The measures have made uncertain the financial transactions with Russia, thus many countries at present are discontinuing export-import trade fearing possible complications on making payments.
"If we fail to make payment due to SWIFT-related complications, in that case we have to follow currency-swap method," says Mr Kamal.
He notes that Bangladesh has good relations with Russia--and that is undeniable. Buying fertiliser from Russia is not a new affair for Bangladesh.
"This time we are also trying to bring fertiliser from them. If they fail (to make supply), in that case we have to find out alternative sources," the minister told the press, striking a note of optimism that, for the sake humanity, the war will be over.
On rising fuel prices because of the Russia-Ukraine conflicts, the minister says everyone knows why fuel prices are going up.
But, he adds, the government does not put the whole pressure of fuel- price hike on the public rather shares a potion. "Had we put full pressure of fuel-price rise on consumers, they might not have been able to bear it."
On economists' suggestion for taking short-term loans from multilateral agencies to deal with the present pressure on economy from fuel-price spiral Mr Kamal says the government doesn't know how far the situation will continue and what other impacts are impending.
However, he adds, the government will find best possible sources of funds to deal with the present economic pressure.
Replying to a query on the system of calculating rate of inflation by Bangladesh Bureau of Statistics, as questioned by private think-tank SANEM, he claims the government follows the proper rules in this case.
Mr Kamal questions where the SANEM gets data from. "Do they use Indian, Russian, or France's data?"
The South Asian Network on Economic Modeling (SANEM) at an event Thursday questioned the selection of base year for inflation calculation which reflects low inflation rate. It says actual food inflation rate is much higher than the figure shown in government arithmetic.
