The ongoing volatility on the foreign-exchange market cannot be addressed only through tightening imports, Bangladesh Bank (BB) spokesperson Md. Serajul Islam said on Tuesday, stressing the need for boosting exports and paying attention to import-substitution industries.
"Limiting imports is not a permanent solution to the dollar crisis that has affected not only us but also other economies around the world," he told a press meet at the central bank headquarters on his last working day.
"We've to work hard to further increase exports and pay serious attention to import-substitution industries to reduce our import dependence," he said, adding that import, export and growth are interlinked.
"Our remittance inflow is on the downward trend while exports dropped slightly, putting some pressure on the forex reserves. However, it'll not last for long."
Citing an example of the leather and leather goods industry, he said that it has much more potential than that of the readymade garment (RMG) that needs importing lots of raw materials.
On the other hand, he said, the leather industry does not require importing too many raw materials as Bangladesh is one of the world's major sources of raw hide.
He called upon the businesses to establish Bangladesh as a brand in the world market.
The export earnings dropped by 6.25 per cent year-on-year in September last while remittance, another backbone of the economy, also registered a 24 per cent fall as compared to the previous month.
The downward trend of both macroeconomic parameters triggered concerns among the economists who think the forex reserves will come under immense pressure if the trend continues further.