DHAKA, Sept 14, 2022 (BSS) - Finance Minister AHM Mustafa Kamal today said that the government is considering introducing the market-based foreign currency exchange rates in the country.

"We're thinking of going for market-based foreign currency exchange rates," he said.

The Finance Minister was responding to queries of reporters after chairing virtually two separate meetings on the Cabinet Committee on Economic Affairs (CCEA) and the Cabinet Committee on Government Purchase (CCGP) today.

He said the rates of foreign currency depend on the supply and demand. Either, it gets appreciated or depreciated, market will determine the rates.

"So, we'll gradually go towards market-based rates of foreign currency," he added.

Kamal also opined that advanced economies of the world also deal with the foreign currency rates in such way. 

Responding to another question on re-fixing the bank lending rates, he ruled out any possibility of any upward or downward change in the lending rates against the existing rates of 6 and 9 percent interest on deposits and bank loans. 

"The current interest rates between 6-9 percent are functioning properly", he said. 

He said it is very tough in countries like Bangladesh to contain inflation by increasing or decreasing interest rate adding that the central bank here does the job in two ways -- by taking fiscal measures and the monetary policy.

When asked about the country's foreign exchange reserve, he said the foreign currency reserve is in good position. 

"Our remittance is increasing while export is rising and import is decreasing", he said claiming that there is no crisis in the foreign currency market. 

Kamal said that the country witnessed inward remittance of $24 billion in a single year while it is also receiving more than $2 billion remittance every month on average.
He said the way the country has been receiving inward remittances, it would not take much time to cross the $48 billion mark foreign currency reserve.

Responding to another question on import of fuel oil from Russia in Russian currency, the Finance Minister said discussions are going on in this regard, but it is yet to be finalized. 

"But in such case Bangladesh will have to do the thing through currency swap. Russia has to accept our currency first", he said.