Bangladesh Bank has sought advice from leading economists on how the country should respond to the escalating war situation across the Middle East following attacks on Iran by the United States and Israel.
Sources said Governor Md Mostaqur Rahman held consultations with eight economists on Saturday, despite it being a weekly holiday, to assess the potential economic risks for Bangladesh.
According to officials, the central bank is also considering forming a crisis management team to closely monitor developments. The proposed team will be tasked with rapidly informing Bangladesh Bank about emerging risks and recommending policy responses.
The latest tensions in the Middle East have already begun affecting global trade routes. Sea lanes used for international import and export shipments have become increasingly uncertain, raising concerns over Bangladesh’s access to essential supplies.
Uncertainty has emerged over the flow of remittances – widely regarded as the lifeblood of Bangladesh’s economy – as well as over the transportation of fuel supplies that keep the country’s industries and vehicles running.
Particular concern has arisen after Iran reportedly closed the Strait of Hormuz in response to the US-Israel strikes, leaving cargo vessels stranded and creating uncertainty in global energy and commodity supply chains. Officials say the impact of these developments has already begun to be felt in Bangladesh.
Another key worry is the country’s heavy reliance on remittances from the Middle East. With Iranian missile attacks targeting US military bases located in several Gulf countries, uncertainty has emerged over whether remittance flows from Bangladeshi workers in the region could be affected.
The governor sought economists’ views on how the conflict might further affect the economy in the coming months and what pre-emptive policy measures should be taken to mitigate the risks.
On condition of anonymity, a senior Bangladesh Bank official told TIMES, “Some policy decisions from the government and the central bank will be announced soon to address the emerging risks from the Middle East war situation.”
