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Bangladesh Bank Governor Dr Ahsan H. Mansur Thursday gave a clear message to the aggregators in particular against getting involved in foreign-exchange hoarding to make a killing on the market-driven exchange regime.
"Don't hold (US) dollars. How many days you can? ...not more than five working days and I can bet on that. So don't do that," the central bank governor said at a roundtable hosted by Bonik Barta at a city hotel.
Indicating the aggregators, the governor said the exchange rate here should be determined by Bangladesh, not someone else from somewhere.
Calling upon the remitters, the leader of the banking regulator said Bangladeshi citizens working abroad should not hoard remittance riding on any form of speculations over rate rise as it will not bring any returns for them from the market which is stable and in good shape.
"So, don't wait. Send money whenever you want to your family back home," he said.
The BB governor notes that the exporters should be very careful in taking exchange-rate risks through delaying bringing back their receipts, which will be costly for them.
"So, calculate properly in taking exchange rate risks," the BB boss alerted.
Though the forex market is stable even in the market-centric regime, he said, it would be very difficult to hold the stability if the inflation differentials with the country's trading peers do not plummet.
To achieve such exchange-rate stability, he said, the country needs to bring down inflation to 3-4 per cent.
"For this, we need to continue policy consistency that's what we're doing now. Hopefully, the inflation will come down to 7.0 per cent by August next and 5.0 per cent by early next year."
Mr. Mansur said the main objective of the central-bank administration is to liberalise the market and bring back confidence in the market. To achieve the end, the regulator has been working.
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