Written by The Banking Post
Bangladesh Bank has turned to leading economists for advice on how the country should respond to the escalating war tensions in the Middle East following attacks on Iran by the United States and Israel.
Governor Md Mostaqur Rahman held consultations with eight economists on Saturday, despite the weekly holiday, to assess potential risks to Bangladesh’s economy, according to officials familiar with the discussions.
The central bank is also considering forming a crisis management team to closely monitor developments in the region. The team would be responsible for rapidly assessing emerging risks and recommending policy responses.
Growing tensions in the Middle East have already begun to disrupt global trade routes, raising concerns about the security of sea lanes used for international shipments. Any disruption could complicate Bangladesh’s import of essential goods.
Energy supply is another major concern. Uncertainty intensified after Iran reportedly closed the Strait of Hormuz following US-Israel strikes, leaving cargo vessels stranded and unsettling global energy and commodity supply chains. Officials say the effects are already being felt in Bangladesh.
Remittances — a key pillar of Bangladesh’s economy — are also at risk. A large share of the country’s migrant workers are based in the Gulf region, where Iranian missile attacks have targeted US military bases in several countries.
The situation has created uncertainty over whether remittance flows from Bangladeshi workers could be affected if the conflict widens.
During the meeting, the governor sought economists’ views on how the conflict might shape economic conditions in the coming months and what pre-emptive measures could help cushion the impact.
“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,” a senior Bangladesh Bank official said.
