Dollar Crises, Import Structure and Economic Development: SomePreliminary Findings on Bangladesh

Abstract

The dollar crisis – labeled also as the foreign exchange crisis, the balance of payment deficit, shortage in the supply of foreign exchange, etc. has been one of the most talked about issues in Bangladesh during the past couple of years reaching its zenith in recent months. Rooted in the country’s various experiences the dollar crisis underlines the current shortages in the country’s foreign exchange supplies vis-à-vis its overall needs – both current and prospective future. Related also are macro-economic policies pursued over the past decades, political uncertainties prevailing in the country, the undertaking of mega development projects based on external funding, capital flights, money laundering, hoarding foreign exchange, and lack of fiscal accountability.