Dhaka, May 23, (V7N) – Bangladesh Bank Governor Dr. Ahsan H. Mansur has said that the country’s foreign exchange market remains stable following the decision to allow a market-based exchange rate for the U.S. dollar. He described the move as a “timely and necessary step,” but warned that inflation control is now crucial to maintaining the dollar’s stability.

He made these remarks during a roundtable discussion titled “The Implementation and Impact of Market-Based Exchange Rates”, held at The Westin Hotel in Dhaka on Thursday evening (May 22).

Dr. Mansur stated that inflation is expected to reach 8% by the end of June, and could fall to 7% by July. However, Bangladesh Bank's target is to bring inflation down to a long-term level of 3–4%. “If inflation remains persistently high,” he cautioned, “it will be impossible to maintain stability in the exchange rate, even in a floating market.”

He further highlighted the issue of capital flight, claiming that hundreds of billions of dollars belonging to Bangladeshis are being held overseas. “If we cannot ensure that assets are safe within the country,” he warned, “people will continue to launder money abroad.”

Pointing to concerns in the banking sector, the Governor questioned why bank deposits are not increasing, despite offering higher interest rates. He attributed the stagnation to massive capital flight, stating, “Around 2.5 to 3 lakh crore taka has been laundered abroad—that’s why we’re not seeing a rise in deposits.”

The Governor's comments come as Bangladesh undergoes major economic adjustments to align with International Monetary Fund (IMF) recommendations, including floating the exchange rate and adopting tighter monetary policies to combat inflation and restore investor confidence.

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