Dollar crisis to end soon, rate will be set by market: BB Governor

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Dhaka, Aug 27: The ongoing dollar crisis will end soon and authorities will take measures to let the market dictate the greenback’s exchange rate, says Bangladesh Bank (BB) Governor Abdur Rouf Talukder.

The central bank boss made the remarks while attending the Annual Banking Conference 2022 at the Bangladesh Institute of Bank Management (BIBM) premises on Saturday.

Addressing the press he said, “This [dollar crisis] is a complex issue. We all have to be patient. The inflation that we are facing right now is import induced.

“Dollar prices depend on short-term inflow, remittance and exports, and outflow, imports. Prices remain stable when there’s a balance between the two.”

“I will be able to say more on this issue after two-three months,” he added.

When asked about the several banks making high profits from the volatile forex market, the BB governor said, “We are investigating the matter. Not much should be said right now.

“But there is a difference in banks making profits and businesses mankind profits. They [banks] have to maintain many responsibilities and regulations.”

Speaking on the country’s banking landscape, he said, “Things are changing rapidly. The industry is passing through fresher challenges in a critical environment attributed by the Covid-19 devastations and global macroeconomic instability.

“Encouraging ‘sustainable banking’ for promoting sustainable growth became particularly crucial in this circumstance where adoption of technology became a necessity. With the evolution of technology, the entire industry has undergone a massive transformation that has changed the way financial procedures are carried out, and the way financial institutions operate.”

“It is very important for banks to demonstrate a good compliance culture to maintain their reputation and win the trust of customers, investors and regulators.

“A good compliance culture can benefit banks in several ways by covering more adequately organizational and individual risk; better shielding reputational risk; confidence among employees while performing their jobs; help to attract and retain talent and ensuring employee engagement; improved transparency which enables better decisions; enhanced relationship with regulators and other stakeholders; and enhanced valuation of the entity among investors,” he added.