Managing the economy

A few people are earning a huge amount of money. They are also getting priority from the financial intermediaries as credit-worthy borrowers. So it is obvious that the money most of the low-earning people are saving in the banks is going to those who already have money. Priority sectors get neglected in this process. The banking sector could not do a lot in this situation, because they are emphasising the profit earning functions. The other non-bank financial institutions can be examples for the banks. There must be a balanced distribution of the funds in every priority sector. In this situation, it is very much necessary to keep central banking operation out of question. But the central bank is also under pressure from inside and outside sources. Money supply in the economy must be controlled by the central bank without any interference of local and foreign bodies. Foreign currency market is now enjoying floating exchange rate. But we should have known the perfect timing to implement this process. Immature decisions have created the situation that we are facing now.

This unstable situation in the foreign exchange market is discouraging international trade and finally it will slow down the economic development process as well. This country has a history of immature and imbalanced international trade position. But it was improving due to the efforts of some truly hard working people in the economic sector. Now the situation is going out of control. A huge amount of money is going outside the country in the name of remittances and investments. The economy is facing a shortage of foreign currency for that reason. Some highly ambitious people in the country are not finding any suitable place to invest their money or they are not in the state of investing money inside the country. So why ask for it? They will invest wherever they want. No, it is not the situation we are facing here in this country. We are developing and for the sake of development we need to become patriotic first. We need to develop a policy that will encourage the local investors to invest inside the country. On the other hand, we have to implement rules and regulations to de-motivate people to earn illegal money.