The New Nation - Internet Edition

UNB, Dhaka

Bangladesh Bank Governor Dr Salehuddin Ahmed Monday said the Bank released some foreign currency to prevent acute crisis in the exchange market.

"This is to ensure smooth supply of dollar in the market commensurate with the demand," he told reporters, replying to a question whether Bangladesh Bank was influencing the exchange market to appreciate the value of Taka against the US dollar as a strategy to curb inflation. "It's not true the measure is to appreciate the Taka," he said, after attending a scholarship distribution ceremony of Dutch-Bangla Bank Limited at Hotel Purbani.

Businesses have been critical about the central bank's move to administer dollar, which they feared could have an adverse impact on the already affected export sectors. Dr Salehuddin said Bangladesh Bank never pronounced that they are going to inject dollar in the market to help appreciate the Taka and reduce import cost amid rising inflation. The Governor said few banks were facing crisis to meet the import payments and Bangladesh Bank provided some fund for them. The central bank also committed to release US$ 300 million upon requests from the banks to face the dollar crisis in the market.

He, however, admitted that it would not be prudent to depend entirely on the market. "If we do so, the poor people will die for want of food."

Replying to a question, he said the Taka appreciated recently to some extent, but it was too low to affect exports and remittance. Moreover, Bangladesh Bank remained alert so the exports and remittance do not suffer.

Asked about the impact of rising prices of fuel oil, the Bangladesh Bank governor said it would not affect the macroeconomic stability.