Our exports will also feel the pinch | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Get the Paper
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Friday
July 25, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Get the Paper
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
FRIDAY, JULY 25, 2025
Our exports will also feel the pinch

Analysis

Ahsan H Mansur
16 June, 2022, 11:15 pm
Last modified: 16 June, 2022, 11:19 pm

Related News

  • Dollar gets upward push as BB buys $10m more in auction at even higher rate
  • Bangladesh Bank buys $313m more in second dollar auction in three days
  • Dollar gains Tk1.8 as BB buys at higher rates, lifting market floor
  • Dollar droops as optimism over US trade deals boost Fed easing bets
  • Dollar hits 7-week lows, focus on rate outlook, trade talks

Our exports will also feel the pinch

Ahsan H Mansur
16 June, 2022, 11:15 pm
Last modified: 16 June, 2022, 11:19 pm
Ahsan H Mansur. TBS Sketch
Ahsan H Mansur. TBS Sketch

The Federal Reserve's decision to hike its benchmark interest rate to a 28-year high will have a significant impact on the world economy besides the US, and Bangladesh also will feel the heat from it.

The United States is moving away from the quantitative easing policy adopted by its government during the coronavirus pandemic and is heading towards a tightening policy, aiming mainly to regain control over soaring consumer prices by reducing domestic demand.

As a result, interest rates will rise in the country in the first place. As the flow of money into the hands of the people decreases, the amount of demand will decrease. Commodity prices may also come down a bit.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

The US wants to raise $40 billion a month from the market by implementing this decision. Huge amounts of dollars will flow to the US from emerging and developing countries. As dollar investment in the US becomes profitable, equities, portfolios and even foreign direct investment will decline in other countries.

Once the demand for the dollar increases globally, the value of the local currency of almost every country will decrease. Countries that will be able to reduce their domestic demand and imports in line with the depreciation of their currency will be able to keep inflation under control.

It is true that the world economy is largely overheated right now. In almost every country, the demand is higher than the supply, so product prices are on the rise.

As the US is the largest market for Bangladeshi products, the rise in interest rates in the country will have an impact on Bangladesh as well. First, like other countries, Bangladesh will suffer from a crisis of dollars. And the cost of transporting goods in dollars will increase the cost of both imports and exports.

And if the domestic demand declines in the US, export orders for our products may decline. At the same time, prices of export products may go down a bit. Undoubtedly, this is bad news for our exporters, especially those in the readymade garment sector.

In order to prevent the domestic economy from being affected by the crisis, we must respond efficiently to this decision by the US. There is no alternative to raising interest rates in our country as well. It would be better if the 9% cap on lending rate could be lifted completely. And if not, the cap can be raised by at least two-three percentage points.

It is not possible to deal with such risks through monetary policy alone. The government has to take some tightening measures under the fiscal policy.

It goes without saying that the value of money will further depreciate against the dollar in the future. In order to reduce this pressure, the government has to take austerity measures. Imports of less important products need to be controlled strictly.


Ahsan H Mansur is Executive Director of Policy Research Institute

Economy / Top News

Dollar

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • The supporters of local Awami League and Chhatra League locked in a clash with police following attacks on NCP convoy this afternoon (16 July). Photo: Collected
    5 killed in political clash in Gopalganj: ASK demands independent investigation
  • On 21 July, a Bangladesh Air Force (BAF) F-7 BGI training fighter jet crashed into Milestone School and College in Uttara, killing at least 31. Photo: Mehedi Hasan
    Milestone tragedy: Death toll rises to 32 as another child dies
  • File photo of a new NBR office in Agargaon, Dhaka. Photo: UNB
    Clear consignments in a day, customs officials directed

MOST VIEWED

  •  ABM Khairul Haque. File Photo: Collected
    Former chief justice Khairul Haque detained
  • File photo of Bangladesh Bank. Photo: TBS
    Governor Mansur orders withdrawal of BB dress code after directive draws criticism
  • Hasina and Taposh in an event in 2020. Photo: Collected
    Al Jazeera investigation: Hasina, in call with Taposh, talks using helicopter to shoot, crush protesters in July uprising
  • Representational image. File photo: TBS
    Govt okays proposed tariff structure for Chattogram Port, rates to rise by up to 440%
  • Representational image. Photo: Collected
    Tariff talks: Bangladesh, US set for crucial virtual meeting on 29 July
  • Mehreen Ahmed speaking to media on 11 July 2025. Photo: Collected
    Court disposes of Dhaka girl's case against parents seeking 'protection from abuse'

Related News

  • Dollar gets upward push as BB buys $10m more in auction at even higher rate
  • Bangladesh Bank buys $313m more in second dollar auction in three days
  • Dollar gains Tk1.8 as BB buys at higher rates, lifting market floor
  • Dollar droops as optimism over US trade deals boost Fed easing bets
  • Dollar hits 7-week lows, focus on rate outlook, trade talks

Features

Illustration: TBS

The future of medicine: How innovations will catalyse quantum leaps in healthcare by 2055

17h | The Big Picture
Photo: Collected

24 July: More than 1400 arrested, 3 missing coordinators found

1d | Panorama
Photo: Mehedi Hasan/TBS

Aggrieved nation left with questions as citizens rally to help at burn institute

2d | Panorama
Photo: Mehedi Hasan/TBS

Mourning turns into outrage as Milestone students seek truth and justice

2d | Panorama

More Videos from TBS

Can America beat China in AI intelligence?

Can America beat China in AI intelligence?

12m | Videos
All Previous Records Broken in Dinajpur, Rice Prices Are Rising

All Previous Records Broken in Dinajpur, Rice Prices Are Rising

2h | TBS Stories
There are many more examples of trials of Chief Justices in the world.

There are many more examples of trials of Chief Justices in the world.

15h | TBS Today
Why is there a massive conflict between Thailand and Cambodia?

Why is there a massive conflict between Thailand and Cambodia?

15h | TBS News Updates
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net