Stern action if anyone found creating artificial dollar crisis: Kamal

Stern action will be taken against the people who will try to artificially increase the price of the US dollar, says Finance Minister AHM Mustafa Kamal. 

Kamal made the warning while briefing reporters following a meeting of the Cabinet Committee on Government Purchase (CCGP) in Dhaka on Wednesday.

He said, "Many are making import arrangements by hiking the [dollar] price. Denied by one bank they are moving to another offering a higher price. The government is working to put an end to this.

"The dollar crisis will end soon. Remittance inflow and exports will increase this year." 

Earlier, the finance minister had said that Bangladesh, considering its economic situation, was not seeking any loans from the International Monetary Fund (IMF).

However, on Sunday, the Finance Division officially wrote to the IMF for a $4.5 billion loan.

Answering queries regarding the IMF loan, Kamal said, "Economic management is done according to a vision. 

"If the government exposes its demands, it will not be in a strong position to negotiate the terms and interest rate of the loan."

"This is why the government's stance regarding this matter was not clarified previously. A decision will be taken considering whether the IMF conditions are in favour of the country, and whether they are compatible with our development policy," he added.

Responding to another question, the finance minister said that the economy of the country is in good shape because of the fixed interest rates.

Kamal said, "Many businesses would have gone extinct due to the Covid-19 pandemic if the interest rates were not reduced. This was a very good decision. 

"Country's banking sector is in a stable condition now as a result of this."

"Situation of the private sector is also good. It is not like we will move away from this decision if the IMF tell us so. 

"However, the government, if needed, considering all the factors, will make changes accordingly," the finance minister added.