It's undeniable that people are suffering, said the BB governor

Prothom Alo: It's been 100 days since the interim government took office, but inflation remains very high. Why is this the case?
Ahsan H Mansur: Inflation has been excessively high for some time, but previously, artificially lower figures were presented. Now, the true extent of inflation is becoming clear. The previous government left a huge hole in the economy, caused by excessive borrowing, money laundering, and other malpractices. Can all of this be fixed easily?

Prothom Alo: What steps have you taken or are you planning to take to control inflation?
Ahsan H Mansur: We've adopted a contractionary monetary policy. For now, we are giving it some time to assess its effects. If needed, we may further tighten the policy. We've already raised the policy interest rate in multiple phases. In some countries, it can take up to 18 months for inflation-control measures to show results, but here it will take around 12 months. However, this timeline started from last July, not now. I am optimistic about the outcome.

Prothom Alo: What gives you this optimism?
Ahsan H Mansur: The removal of the cash margin for Letters of Credit (LCs) for imports and the reduction of import duties on some products should have positive effects, which may be seen as soon as next month. However, we must consider that the recent flood will also have an impact on the market. Additionally, the global price of some products, like soybean oil, has increased, reaching $1,200 per tonne. Another reason for my optimism is the remarkable growth in exports, with a 10.8 percent increase over the past four months and a 20 percent rise in October alone. Remittance inflows have also been strong. Regarding GDP growth, while it may decrease, it won’t be a drastic drop, and per capita income has not significantly declined.

Prothom Alo: You say there should be no problem with opening LCs now, but Bangladesh Bank data shows a decrease in LCs for some essential items.
Ahsan H Mansur: Our foreign exchange reserves are in a good position. If any bank is refusing to open LCs or turning away traders, they should contact me directly.

Prothom Alo: The Trading Corporation of Bangladesh (TCB) is selling some products at subsidized prices to help low-income people. However, each truck carries enough for only around 350 people, leaving more people in long queues. What is the solution?
Ahsan H Mansur: It's undeniable that people are suffering, and we are doing everything we can to ease their hardships as much as possible.