Business leaders expressed their dissatisfaction with the central bank’s frequent policy adjustments and demanded the implementation of solid, long-term policies to guarantee uninterrupted commercial operations, as per reports.
Governor of Bangladesh Bank Abdur Rouf Talukder met with representatives of several business organisations, under the direction of the Federation of Bangladesh Chambers of Commerce and Industry, to talk about recent policy changes.
In response to pressure from the International Monetary Fund, the BB took three decisive actions on 8th May. The dollar rate increased to Taka 117 (a rise of Taka 7). Interest rate policy rate determination has been put on the market and taken out of the SMART system. To raise the cost of borrowing from banks, a 10 per cent increase has been made to the maximum limit for policy rate hikes.
Following the meeting, FBCCI president Mahbubul Alam told reporters that when companies plan projects, they consider various factors such as interest rates and exchange rates.
However, if the central bank changes its policies shortly after, businesses incur losses. He stressed that businesses find it difficult to plan well when policies change frequently, and he asked the central bank to maintain long-term policies to improve company strategy planning.
They received assurances from the central bank that such incidents would not occur again.
He also recommended that prior to implementing any policy adjustments, the central bank consult with the relevant parties.
Mahbubul Alam also mentioned that despite the central bank’s interest rate adjustments, the governor assured them that the interest rate would not exceed 14 per cent. He added, ‘It is now almost fixed at 14 per cent and good borrowers will get loans at 1 per cent less.’
He said that there was dollar crisis on the market and businesses suffered from sudden hike of dollar rate.
He claimed the governor told them there wouldn’t be a significant difference between the open market and banks, and that the dollar rate would stay at Taka 117. Additionally, he stated that by December of next year, it has been guaranteed that the dollar market will stabilise.
Former FBCCI president Md Jashim Uddin, FBCCI senior vice-president Md Amin Helaly, vice-president Md Munir Hossain, Dhaka Chamber of Commerce and Industries president Ashraf Ahmed, Metropolitan Chamber of Commerce and Industries president Kamran T Rahman, BGMEA president SM Mannan, BTMA president Mohammad Ali Khokon, BKMEA executive president Mohammad Hatem and PRAN-RFL Group CEO Ahsan Khan Chowdhury, among others, were present at the meeting.
