Fx Crisis Cause By Energy Situation - Biggest Economic Issue Facing Bangladesh!9 May 2024 07:44
Header say all & really what points to options available to Bangla Govt.
Yesterday's News - "Bangladesh Miss IMF Fx Conditions - Ask China for 36 BILLION Yuan Loan to Reduce Pressure on Dollar Reserve"
That is massive indicator & not something to ignore if people understand how Govts / Economies work.
IMF put conditions for reasons and this is a loan for 25% of the net reserves needed by end of June - that is huge deficit to make up!
Any lender will have CONDITIONS and this help to make sure foundation in place to be able to service Loan.
Fundamental problem come from high cosr of imported energy - this has NO near term solution or relief.
Only other solution is DOMESTIC Energy production. If this is not followed then crisis worsens - Govt as borrower, IMF & China as lender knows this.
We know Phulbari is the BEST & QUICKEST way to start to address this with key China interest central to this.
We have had short term price dip due to placing issue (which some mischievous posters try to take advantage of) but think all can see how fundamental reason for price Rise still there & only matter if time to push back in.
Think we see that now & with even Stronger indication after Prime Minister Office approach China yesterday for major Loan to prevent IMF conditions default.
Sensible ones will understand - foolish ones will still play 'BB games'.
🦉