Taka Continues to Cause Inflation

As an import dependent country our focus should be to minimize cost of import. As majority of our trade is in USD we will benefit most when our BDT appreciates against USD. Higher value of BDT lowers import cost and keeps market prices stable, which is most desired by common people. Lower BDT means higher import cost resulting in inflation, which reduces our real income and lowers our buying power. Inflation is an enemy of ordinary people, it takes away their financial freedom and their social harmony. Inflation could be profitable business for some small percentage of people, but the greater interest of society lies in price stability. For instance, exporters prefer to lower the local BDT as it provides them with windfall profits, ie they get more BDT when they sell their foreign currency received through exports. It’s good for the owners of export factories but it has only negative impact on the workers at the factory as they don’t get a penny from such gains, rather they suffer more by paying higher prices for commodities. Historically, our BDT has always depreciated against the USD. In 1997, it was 45 taka to a dollar, today its touching 90. In 2027 we could be paying over 200 taka to a dollar.

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