We hope inflation will come down to 6% by Dec: CA Yunus

Chief Adviser Muhammad Yunus has said controlling inflation was the biggest challenge faced by the interim government, expressing hope that it will come down to 6% by December.

"It was our biggest challenge. Due to a fragile economy and floods, food inflation had reached nearly 14%. Now, it has dropped to half that. We hope it will come down to 6% by December," he said in a televised address to the nation tonight (5 August), on the occasion of the July Uprising Day.

The chief adviser mentioned, "In June this year, the country's overall inflation rate fell to 8.48% — the lowest in the past 35 months. This marks the fourth consecutive month of a steady decline in overall inflation."

He noted that the return of confidence among expatriates in the interim government, which has contributed to stabilising the currency market. "In the last fiscal year, a record $3.33 billion in remittances was sent through banking channels. Export earnings grew by nearly 9%."

Yunus added, "As a result, the taka has strengthened. For the first time in years, the exchange rate of the taka against the dollar is rising. In the past 11 months, $4 billion — the highest ever — was paid in interest and principal to foreign creditors.

"Even after clearing old dues, our foreign currency reserves are increasing. We hope this trend will continue in the future."

He also highlighted the government's initiatives to attract

Speaking on foreign direct investment, he said, "Various initiatives taken to boost foreign investment have led to Tk10,500 crore in foreign investment in the first three months of this year — more than double compared to the same period last year.

"From October onward, in six months, foreign direct investment has reached Tk16,500 crore — double the amount recorded in the last six months of the previous government's tenure."