Public’s ‘orgy’ on the roads of Bangladesh, police vehicles broke
After Sri Lanka, Bangladesh is now going through the worst phase of economic crisis. Here the prices of petrol have been increased by up to 50 percent. This is the biggest increase ever since the independence of the country. Here also the situation like Sri Lanka has become. Due to rising inflation, people have come out on the road. Demonstrations are going on in many cities of the country. Angry people have damaged the police vehicle. It is clear from the current situation in Bangladesh that the situation may get worse. The Finance Minister of Bangladesh has sought a loan of $4.5 billion from the International Monetary Fund (IMF).
Not only this, the supply of oil being imported from others in Bangladesh, which is facing financial crisis, has been disrupted. As a result, there is a lock on the diesel-powered powerplant here. The treasury of the country’s central bank has declined to such an extent that the import of many types of goods has been banned.
The situation deteriorated rapidly due to increase in imports in the country
The biggest reason for the deteriorating condition of Bangladesh is the increase in imports and the occurrence of exports here. The central bank here has also mentioned this in its report. Due to the increase in imports, it directly affected the treasury here. According to the report, between July, 2021 to May 2022, $ 81.5 billion has been imported. When compared to last year, there has been an increase of 39 percent in imports.
The effect of this was that Bangladesh spent more money on importing goods from other countries and reduced its exports. Thus he suffered a loss. For some time, there has been an increase in imports and a decrease in exports in Bangladesh.
Foreign exchange reserves became so empty in a year
According to media reports, the income of Bangladeshis working abroad has been falling for some time. This was also one of the reasons for the decrease in foreign exchange reserves here. Rising imports made the situation worse. The figures of foreign exchange reserves show that till July last year it was $ 45 billion. On July 20, 2022, this reduced to only $39.
That’s why the price of petrol increased
The Russo-Ukraine war and the Kovid-19 pandemic have played a big role in raising oil prices. Due to both these developments, a big increase is being seen in the price of oil. In Bangladesh, the price of petrol has increased by 51% and in diesel by 42%. Due to Russia-Ukraine, the demand-supply equation worsened and due to the Kovid epidemic, OPEC countries reduced the supply of oils. Due to this, the effect is being seen on the supply all over the world. Due to this there is a huge increase in the price. After this inflation of Bangladesh, people have taken to the streets. Demonstrations are being seen in different parts.
Bangladesh will be able to import goods only for 5 months
At present, the situation in Bangladesh has deteriorated so much that there is so much foreign exchange reserves that goods can be imported only for 5 months. Meanwhile, if the prices of goods increase across the world, the situation will worsen and the country will find it difficult to deal with such challenges.
