Will Bangladesh be ruined like Pakistan? The Treasury is facing a dollar deficit

Bangladesh Crisis: In Bangladesh, a student strike that started after the Dhaka High Court granted reservation in government jobs to the families of freedom fighters, toppled the Sheikh Hasina government. Prime Minister Sheikh Hasina had to leave the country after resigning as prime minister amid violent student protests. Although Sheikh Hasina has left Bangladesh to protect herself, her country's economic situation is dire. Bangladesh's government treasury is facing a dollar deficit. It is said that there are not enough foreign exchange reserves for easy import and export. Given its economic status, the debate over whether Bangladesh is doomed like Pakistan has gained momentum. What is Bangladesh's foreign exchange reserves? According to a report by TradingEconomic.com, Bangladesh's foreign exchange reserves stood at $24197.20 million in May 2024, which increased to $26815.20 million in June 2024. Foreign exchange reserves in Bangladesh averaged $24916.34 million from 2008 to 2024, much lower than the all-time high of $48060.00 million in August 2021. Bangladesh's foreign exchange reserves reached an all-time low of $7470.90 million in June 2008. What products does Bangladesh export? Bangladesh is facing a shortage of foreign exchange, Indian exporters say in media reports. It doesn't even have enough dollars in its foreign exchange reserves to easily import and export. Exports are already hampered by foreign exchange shortages. Bangladesh exports jute, jute products, chemicals and chemical products, petroleum products, technology, fish and textile waste. How much impact will the Bangladesh crisis have on India? Bangladesh's political crisis will have a direct impact on bilateral trade with India. India exports a wide variety of goods to Bangladesh, including spices, cotton, machinery and food products. Indian exporters say developments in Bangladesh will affect bilateral trade. Due to the political crisis in Bangladesh, we are facing some challenges, but the situation is expected to return to normalcy soon,” said Federation of Indian Export Organizations (FIEO) Director General Ajay Sahai. Sanjay Puthia, West Bengal exporter and managing director of Patton, said the social, economic, cultural and geographical ties between the two countries are very deep. So this crisis will have a significant impact on India's trade. Also read: Stopping trade with Bangladesh, India's big move after Sheikh Hasina's ouster The post Will Bangladesh be ruined like Pakistan? Treasury struggling with dollar shortage appeared first on Prabhat Khabar.