Dollar Crisis in Bangladesh Paragraph
A dollar crisis refers to a situation in which there is a sharp decline in the value of the U.S. dollar against other currencies. This can occur due to a variety of factors, including a large trade deficit, political instability & war.
Since May, the dollar came under pressure due to soaring in importing bills. Again though export has increased but it is not like import. Apart from this, migrant earnings did not increase as per the export. As a result, the demand for imports is not being met by export and migrant earnings. That is why the dollar crisis occurred in the country. Of this, the value of major international currencies increased. The value of the US dollar has increased by more than 10 Tk within the last year in the country. Now every dollar costs 94.70 Tk officially. But every dollar costs more than 105 Tk in the case of expatriate income and product export bill monetization. As a result, the dollar is being bought at a higher price than importers. The foreign trip of government officials has been suspended to eradicate the dollar crisis. Bangladesh Bank stopped proving bank loans to discourage the import of 27 kinds of goods including expensive cars, cosmetics, gold ornament, ready-made cloths, and electrical items used for domestic work and beverages. Due to this, new letter of credit (LC) openings decreased. Letter of credit (LC) opening decreased by 31% last July as compared to June.
A dollar crisis can have significant economic consequences, including inflation, higher interest rates, and a decrease in international trade.
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