The World Bank country head here in Bangladesh, Abdoulaye Seck, has categorically suggested further devaluation of taka, in a more flexible forex market, to increase the much-needed foreign exchange earnings of the country.
“Additional exchange rate flexibility will incentivize Bangladeshi migrants to send remittances using formal channels and will also encourage repatriation of export earnings,” he said on Thursday at the monthly luncheon meeting of the American Chamber of Commerce in Bangladesh.
He was the Chief Guest at the meeting bannered ‘Inclusive and Resilient Economic Growth in Bangladesh: The World Bank’s Engagement’ in Bangladesh.
The World Bank boss in Dhaka said Bangladesh should diversify its economy, especially its export trade, and go for policy reforms in financial and other sectors to attain sustainable economic growth. ‘Tough reforms are required now for sustainable economic growth in Bangladesh, as financial reforms and trade reforms can help to ensure macroeconomic sustainability…’ he said.
Drawing attention to the fact that the share of exports in the GDP has decreased due to the high concentration in the garment sector, the WB official said that after her graduation from the LDC list in 2026, Bangladesh will need a new driver of exports to sustain the export-led economic growth.
He pointed out that food prices have been increasing faster than wages, reducing the purchasing power of many families, and suggested that strengthening monetary policy and phasing out interest rate caps can be helpful in containing inflation.
AmCham president Syed Ershad Ahmed, vice president Syed Mohammad Kamal Commercial Counsellor at the U.S. Embassy, John Fay, and USAID Mission Director Reed J. Aeschliman, among others, attended the meeting.