1 month ago
Bangladesh, which remains on the edge amid unrest, is facing a severe economic crisis. According to data from the Bangladesh Bureau of Statistics, the consumer price index (inflation) in July reached an all-time-high in 12 years at 11.66 per cent. The food inflation, particularly, exceeded 14 per cent in July for the first time in 13 years, The Daily Star reported.
Due to protests, the supply chain was heavily affected across Bangladesh. Moreover, the business sector in the country is also facing a liquidity crunch as the central bank has put restrictions on the maximum amount of cash withdrawal as uncertainty looms following the ouster of Sheikh Hasina-led government, and the new administration under Nobel Peace Prize winner Muhammad Yunus - who works to bring normalcy back in the country.
Citizens of Bangladesh cannot withdraw more than 2 lakh Bangladeshi Taka at a time from a bank.
India Today visited Kawran Bazar, the biggest wholesale market in Dhaka, to speak to some of the local retailers and learn about their situation. Amid the Bangladeshi Taka's value witnessing a consistent decline against the US dollar, the retailers are under pressure to keep the prices of essential commodities stable - thereby not allowing them to make a good profit.
However, the retailers told India Today that the prices would soon go up.
Footfall in Kawran Bazar has reduced significantly due to the unrest in the country. Though there has been peace in Dhaka for the past few days, the inner pockets of Bangladesh continue to grapple with protests.
Shafiqur, a local retailer, told India Today that the prices of staples such as rice and pulses, among others, have "marginally gone up" as they are imported.
"We are not raising the prices despite disruptions in the supply chain mechanism," he said.
Another retailer, Rafiq, echoed Shafiqur, saying that for now traders are keeping prices stable, but the government has assured them that they will be able to raise prices by next month, considering essentials are already becoming costly.
Bangladesh imports pulses, dry fruits, spices and other essential items from neighbouring countries, including India.
The prices of essential commodities and other items are expected to go up even more due to the supply chain disruptions.
Meanwhile, data from the Central Bank showed that the forex reserves of Bangladesh reached $20.48 billion on July 31, a decrease from $21.78 billion the preceding month. A nearly $1.3 billion decline in the currency reserve of Bangladesh has forced the Muhammad Yunus-headed interim government to make major decisions, including capping of maximum cash withdrawal in a day.
Local trader Islam Mohammad told India Today that the limit of maximum withdrawal is stopping them from buying more forex, resulting in the entire trading business to slow down.
They said that the inability of the business community to buy forex in good numbers, which is required for trading, will eventually affect the imports and fuel inflation in Bangladesh.
Bangladesh is embroiled in unrest that initially started as protests against the quota system in government jobs but soon turned into anti-government demonstrations, leading to the deaths of at least 400 people. The unrest caused Sheikh Hasina to resign as the Prime Minister of the country, and Muhammad Yunus - known as the 'banker of the poor' - to take charge as the chief adviser of the interim government.
The protests have resulted in the exodus of minorities, especially Hindus, from Bangladesh as they have targeted by mobs, with reports of vandalisation, looting and lynching flooding social media. Muhammad Yunus and several other political leaders of Bangladesh have repeatedly called for peace and calm, with the new head of the country urging the students - at the centre of the protests - to protect the minorities.
Published On:
Aug 14, 2024
Tune In
