Ashutosh Mishra Reports: Bangladesh Faces Severe Economic Crisis And Rising Inflation

Ashutosh Mishra’s ground report from Bangladesh reveals the severity of the ongoing economic crisis, which is causing widespread distress across the country. Food inflation has surged to an all-time high, exceeding 14% in July, driven by ongoing protests that have disrupted supply chains nationwide. The liquidity crunch is compounded by a central bank restriction that limits cash withdrawals to Tk 2 lakh, adding to the uncertainty following the collapse of Sheikh Hasina's government. Data from the Bangladesh Bureau of Statistics shows a dramatic increase in the consumer price index, rising from 1.94% to 11.66% in July. Essential commodity prices are climbing as the supply chain remains unstable. At Dhaka’s largest wholesale market, Kawran Bazar, footfall has diminished, and traders report marginal price increases for imported staples due to depleting foreign exchange reserves. The forex reserves of Bangladesh fell to $20.48 billion by July 31, a decline from $21.78 billion the previous month. This drop has led to further restrictions on cash withdrawals, exacerbating the liquidity crisis and impacting trading.