Published:  12:31 AM, 15 November 2017

Atiur unveils secrets how BB dodged global recession

Atiur unveils secrets how BB dodged global recession

Former Governor of Bangladesh Bank Dr Atiur Rahman said, "The central bank of Bangladesh has focused on combining short-term business cycle fluctuation management with long-term sustainability agenda during the difficult years of global financial crisis".

He said that BB has succeeded in channeling the money to the real economy and reach the bottom of the pyramid which helped enhance domestic demand that proved to be Bangladesh's main strength of weathering fallouts of global financial crisis.

Dr Atiur Rahman made the remarks while giving a talk on "Developmental Central Banking: The Bangladesh Story" at the Hotel Radisson Blu in Kathmandu organized by Nepal Rastra Bank (central bank of Nepal) on Tuesday, said a press statement. Governor of Nepal Rastra Bank Dr Chiranjibi Nepal chaired the session while senior officials of Nepal Rastra Bank, among others, attended the program.

Dr. Rahman pointed out that during the last seven or eight years, Bangladesh Bank aimed to improve monetary transmission channels, to promote management of macro-financial stability risks through broad based inclusion, and to induce directional bias towards more productive and sustainable activities.

"We focused on experimentation and implementation while being mindful of what monetary policy can and cannot do," said Dr. Atiur.

He added that Bangladesh Bank's inclusive financing thrusts have been on output initiatives in agriculture, MSME, and green financing. It also put emphasis heavily on institutional changes to induce banks to move closer to the rural people, encourage partnership between conventional and non-conventional players, promote digitization of the services etc.

"We made bold experimental moves and are now witnessing the early rewarding outcomes," said Dr Atiur. He pointed out that Bangladesh as an economy has commendable growth prospect, inflation has been kept under control for over a decade, exchange rate of Bangladeshi Taka has remained relatively stable, increase in forex reserve has been exemplary, remittance influx has become core strength, poverty and extreme poverty has been reduced dramatically.

He opined that all these have been possible because of macro-prudential role played by Bangladesh with potent support from the government.

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