It is unlikely that the economy of Bangladesh will face stress like that of Sri Lanka as the current situation is solvable, according to Bangladesh Bank Governor Ahsan H Mansur.
“We [Bangladesh] are not in any crisis as the ongoing financial situation is completely solvable. So, we will not turn out like Sri Lanka or any other country,” he said.
Mansur made these comments while speaking at the 6th Mastercard Excellence Awards 2024 at the Radisson Blu Dhaka Water Garden in the capital city yesterday.
“Both our balance of payments and foreign exchange reserves have improved. Besides, the exchange rates are now stable,” he added.
The country’s forex reserves have been hovering around $19 billion for the past three months thanks to higher remittances and exports coupled with lower imports. Meanwhile, the exchange rate between taka, the local currency, and the US dollar has stabilised at Tk 120 per greenback.
“As such, I don’t see any possibility of risk from the external sector,” Mansur said.
Mansur also informed that Bangladesh has sufficient forex reserves to import daily necessities as needed.
Furthermore, he said it is not possible to fix the country’s financial sector without addressing lapses in its political system.
Citing how ensuring good governance in the financial sector will take time, he said the interim government may not be able to fully implement necessary reforms in the short term.
“But we are starting the works,” Mansur added.
The central bank governor believes that the banks currently facing a liquidity crunch will be able to overcome the situation.
“So, depositors will not face any crisis,” he said, adding that the Bangladesh Bank is giving assurance in this regard.
However, some major steps may be taken to help the particularly vulnerable banks overcome their poor financial condition, Mansur said.
Syed Mohammad Kamal, country manager for Bangladesh at Mastercard, said they remain committed to driving digital innovation and fostering inclusive growth in the country.
“Mastercard is pleased to collaborate with leading banks, fintechs and merchants as partners, all of whom play a crucial role in materialising our combined vision of creating a robust digital financial ecosystem,” he added.
Kamal said that through these awards, Mastercard is proud to celebrate these organisations for their outstanding contributions and achievements, which have powered the advancement of digital finance in Bangladesh.
Trishita Maula, acting deputy chief of mission at the US Embassy in Dhaka, was present as the guest of honour.
Winners of the Mastercard Excellence Awards 2024 were chosen based on their contributions towards building a strong digital economy by furthering financial inclusion. A total of 26 organisations were awarded in 18 categories.
Mastercard has been hosting the event since 2019 to celebrate the contributions of industry players towards inculcating a digital-first behaviour among enterprises and communities by promoting digital payments.
Mastercard began its operations in Bangladesh in 1991 and became the first global payments operator to set up an office in the country in 2013.
Daily Star