The New Nation - Internet Edition

Staff Reporeter

Bangladesh Bank (BB) Governor Dr Salehuddin Ahmed yesterday said the central bank was not thinking of readjusting the taka against the US dollar despite a grim US economic outlook and the dollar's instability.

He was talking to journalists at Zia International Airport after returning from the annual general meeting of World Bank (WB) and IMF in Washington DC.

He said the government does not want to affect export earnings by readjustment of the taka against the dollar.

He, however, said, "Uless there is urgent necessity, we want to keep it that way."

Mentioning the assistance from the international lending agencies Dr Salehuddin said Bangladesh will receive a total $1 billion from the World Bank and International Monetary Fund this year.

Finance and Planning Adviser Dr AB Mirza Azizul Islam earlier had said after holding talks with WB officials in Washington DC that the bank was committed to a total assistance package of $1 billion by December 2008.

The pledged assistance from the WB and IMF is seen as a record level of financial support for Bangladesh.

BB Governor said that the multi-lateral agencies' impression of Bangladesh among the developing nations is quite positive.

He also said that donors have lauded the stability of Bangladesh's macro-economic stability and low inflation rate and the constant 6 per cent growth rate.

When asked whether the country would be affected by the impact of global financial turmoil he said that the Bangladeshi economy is not likely to suffer any immediate effect.

He cautioned the export sector and inflow of ODA (overseas development assistance) may witness some downturn due to the financial crisis.

Bangladesh's export to US and European markets will not be affected by the global downturn for now but a prolonged crisis will dampen exports and flow of ODA funds, he added.