After 8.5 years, Bangladesh’s economic signs of recovery are slowly starting to show. Exports and remittances increased, contributing to economic stability and earning the country $33 million between July and December. Although the country lost $191 million in November, earning $33 million is a big victory in turning the economy around.
However, increasing currency remittances and exports makes it easier for the country to import goods and services without a financial burden. Consequently, the foreign reserve of Bangladesh is increasing, aiding in reducing the money shortage the country suffered from previously. This will enable the country to focus on long term goals without having to worry about a slipping currency rate.
The positive change in the currency reserve ratio provides the nation the ability to afford foreign goods and lessens the requirement to borrow from other nations. This will grant the country the opportunity to stabilize the Taka and maintain a cheap rate on imported goods. On the other hand, the economy fortunately increases with these measures, however, doing so without government support will be difficult as there will be a dependency on currency remittances and exports in order for the country to experience these benefits in the long term.
Source: Business Inspection BD
