Desk Report,
Dhaka Bank to reach marginalized people through digital channels
Twenty years ago, no such company could be found in Bangladesh with an annual turnover of 500 million US dollars. Now we see many companies with an annual turnover of more than 3 billion or 3 billion dollars. The size of the country’s economy has grown a lot in the last two decades, and the purchasing power of the people has also increased. A large part of the large industrial groups are involved in the production of food products and basic consumer goods, which is directly related to the fluctuations of the economy. With time, these companies have become more capable, entering new businesses.
Dhaka Bank to reach marginalized people through digital channels
Now many good companies have been formed, which can expand their business abroad; and can even be listed on the international stock market. Many Indian companies have strengthened their position in the global market, and we also have that possibility. This will make the accounts of these companies more transparent and accountable.
Currently, due to inflation, people’s savings have decreased, which has affected the sales of industrial companies. However, its impact on the quality of loans of large industrial groups has not been observed so far. Getting loans at low interest rates is helpful for businesses. Adding 14-15 percent interest and other costs makes it difficult to be profitable in business. In a country like ours, it is important to create a certain amount of employment every year, which is facilitated by low interest rates. However, the interest rate must be determined through monetary policy, which was not the case in 2020.
Inflation increased worldwide after Corona. In my 27-year career, I have never seen such high inflation in America. However, they have been able to reduce it step by step through the right monetary policy and market system. That did not happen in our country, because a timely monetary policy was not formulated for a long time. Although the reduction in interest rates was supposed to reduce investment and consumer spending, in reality many companies made good profits only on this opportunity, while marginal consumers hardly benefited from it.
The dollar crisis has eased somewhat. There is a positive trend in exports and expatriate income, resulting in a surplus in the current account. Earlier, there was a big difference in the dollar price between banks, which has now reduced a lot. As a result, the flow of dollars has increased.
Apart from this, there has been a positive change in export orders after the new government came to power in the United States. Large garment factories have already received purchase orders for the next one or two seasons. However, due to political changes in the country, some stagnation is being observed in investment in the infrastructure sector. If investment increases, imports will increase, resulting in an increase in demand for dollars. For this, the dollar exchange rate needs to be fully market-based as soon as possible.
