Dhaka: Bangladesh is currently experiencing significant unrest and a severe economic crisis. The Bangladesh Bureau of Statistics reports that the consumer price index, or inflation, hit a 12-year peak in July at 11.66 per cent. Notably, food inflation surpassed 14 per cent that month, the highest in 13 years, as noted by The Daily Star.
Protests have disrupted the supply chain throughout Bangladesh. Additionally, the business sector is struggling with a liquidity shortage due to the central bank’s limitations on cash withdrawals. This follows the removal of Sheikh Hasina’s government and the appointment of Nobel Peace Prize laureate Muhammad Yunus, who is striving to restore order.
Bangladeshi citizens are now restricted to withdrawing a maximum of 200,000 Bangladeshi Taka from banks at one time.
With the Bangladeshi Taka devaluing against the US dollar, retailers face the challenge of maintaining stable prices for essential goods, affecting their profits. Retailers have indicated to India Today that price increases are imminent.
Visitor numbers at Kawran Bazar have dropped sharply amid the country’s turmoil. Although Dhaka has seen recent calm, other areas of Bangladesh are still dealing with protests.
The country relies on imports of pulses, dry fruits, spices, and other necessities from neighboring nations, including India. Due to the disruptions in the supply chain, the cost of these essential goods is expected to rise further.
In the meantime, the Central Bank’s data reveals that Bangladesh’s foreign exchange reserves fell to $20.48 billion on July 31, down from $21.78 billion the previous month. This $1.3 billion reduction in reserves has compelled the interim government, led by Muhammad Yunus, to consider significant decisions.
