The interim government took four important decisions to stabilize and reform the financial sector and tackle inflation. Among these decisions is the formation of a banking commission for sustainable reforms in the banking sector. Apart from this, a blueprint on the overall situation and reforms of the financial sector will be prepared and published within 100 days of the formation of the interim government.

These decisions were made in the meeting of Bangladesh Bank Governor Ahsan H. Mansoor with Chief Advisor Dr. Muhammad Yunus on Sunday. This information was informed in a press release sent from the office of the Chief Adviser.

It was informed that in the meeting, as an initiative to increase liquidity in the foreign exchange market, the existing band for interbank foreign exchange transactions has been increased from 1 percent to 2.5 percent. In the crawling peg system of fixing the exchange rate, the intermediate price of the dollar is currently 117 rupees, which may rise to 118 rupees. As a result of the new decision, the price of the dollar can increase up to 120 rupees. It is expected that liquidity will return to the interbank foreign exchange market very soon and the volume of exchange will also increase rapidly.

Regarding inflation, it is said that the existing inflation of the country should be reduced through proper management of demand and supply. For this, monetary policy should be maintained in a contractionary mode and at the same time the supply situation should be improved. Appropriate action has been taken in this regard. However, it was informed in the meeting that everyone will have to be patient for some more time to get relief from the pressure of inflation.

According to the Bangladesh Bureau of Statistics (BBS), overall inflation in the country rose to 11.66 percent last July. Overall inflation was 9.72 percent last June. On the other hand, food inflation rose to over 14 percent in July, the highest in 13 years. The previous highest food price inflation was in April 2011, at 14.36 percent. Since then, food inflation has never risen above 14 percent.

Regarding the banking sector reforms, it is said that the current situation of the banking sector was discussed in detail in the meeting of the Chief Advisor and the Governor. The issue of reforms in this sector came up in the discussion. It has been decided that a banking commission will be formed to take up the activities for sustainable reforms in the banking sector. Apart from this, a vision will be developed regarding the overall situation and reforms of the financial sector; Which will be announced within 100 days of the formation of the interim government.