Excellent summary as expected. One of the issues that could have an enormous impact is the exchange rate. Nothing will be done until after the election, of course, but controlling the exchange rate to support a single industry (garments) could turn sour if buyers start looking at cheap labor as a negative and therefore start cutting back on orders by sourcing goods from Vietnam or some other country with more stable labor relations. It’s a bit of a Dutch disease in the making... higher production costs, negative international perceptions and labor unrest ... could be the kiss of death.
I believe a true exchange rate is closer to 135 than 115, so we shall see. You will hear the wailing wherever you are.
Sorry we didn’t get the chance to have a coffee, but it sounds like you spent your time much more productively.
Excellent summary as expected. One of the issues that could have an enormous impact is the exchange rate. Nothing will be done until after the election, of course, but controlling the exchange rate to support a single industry (garments) could turn sour if buyers start looking at cheap labor as a negative and therefore start cutting back on orders by sourcing goods from Vietnam or some other country with more stable labor relations. It’s a bit of a Dutch disease in the making... higher production costs, negative international perceptions and labor unrest ... could be the kiss of death.
I believe a true exchange rate is closer to 135 than 115, so we shall see. You will hear the wailing wherever you are.
Sorry we didn’t get the chance to have a coffee, but it sounds like you spent your time much more productively.
All the best
John
Agreed, everyone I met agreed they have to let the Taka depreciate.
And sorry, was a hectic four days in the end!
Great insights