Bangladesh Bank Governor Dr. Ahsan H. Mansur assured on Thursday that the country is not facing a shortage of foreign exchange and encouraged the business community to proceed with the import of essential goods to meet market demand.
"Currently, we do not have any shortage in foreign exchange. Anyone can open an LC," Dr. Mansur said, speaking to reporters after a meeting on inflation at the Finance Ministry, chaired by Finance Adviser Dr. Salehuddin Ahmed.
Emphasizing the need to address demand in the market, Dr. Mansur urged businesses to act decisively. "Open your LC, import essential items, and meet the demand," he advised.
In his remarks, the central bank governor reaffirmed his belief in a free-market economy, expressing confidence that market forces would help stabilize the current economic situation. "We will take necessary measures, but it will take time to cool down the situation," he added.
Dr. Mansur detailed several government initiatives aimed at easing inflation, including expanding rationing programs. He announced that the government will soon increase the distribution of essential commodities to 10 kilograms, up from the current five kilograms, for each of the 10 million beneficiary families.
"We are increasing the number of trucks for the Open Market Sale (OMS) initiative," he noted, aiming to improve accessibility to essential goods at controlled prices.
Addressing inflation directly, Dr. Mansur emphasized that inflation is "ultimately a monetary phenomenon" and that it must be managed through effective monetary policy. He cautioned against excessive market intervention, recalling past incidents where heavy-handed measures led to product shortages.
"If we apply too much pressure, products will disappear from the market. We saw this during the 1/11 period and again in the recent egg crisis," he warned. Instead, he advocated for "light-touch qualitative monitoring," saying, "We are putting pressure through dialogue, not over-monitoring."
Dr. Mansur emphasized a measured approach to market control, discouraging impulsive decision-making. "We aim for a balanced approach. There is no scope for rash decisions in this context. We believe that the situation will stabilize—it just needs time," he concluded, expressing confidence that government efforts to increase supply would eventually help bring relief.
