External trade openness crucial for growth: Atiur

Bangladesh Bank governor Dr. Atiur Rahman on Tuesday underlined the need for openness for growth in the regional and global trade.

He was speaking at the inaugural session of “the SAARCFINANCE seminar on Management of external sector openness-South Asian country experiences”.

Atiur said external trade openness frees up efficient domestic producers from demand limitations of the local markets.

SAARCFINANCE Cell and Bangladesh Bank jointly organised the seminar with Abu Hena Mohd Razee Hassan in the chair, reports UNB.

dr. atiurThe seminar was also addressed by former caretaker government advisor AB Mirza Azizul Islam and former deputy governor of Bangladesh Bank Allah Malik Kazmi.

Atiur said trade openness also brings in major adjustment pains, with the opening up rendering many domestic output activities uncompetitive.

He said openness to global capital flows likewise spurs growth by attracting investment inflows, but at the same time heightens instability risks from volatile trends of global capital flows.

External opening up also poses new demands on approaches in safeguarding of monetary and financial stability, he added.

“We in the SAARCFINANCE member economies are managing our external sector openness in trade and investment flows striking careful balance between the imperatives of promoting growth and safeguarding macroeconomic and financial sector stability,” said the central bank chief.

He also observed that specific country circumstances being different among the SAARCFINANCE members, their approaches in external sector openness will necessarily bear divergences as well as commonalities.