At present, according to official estimates, the inflation rate in Bangladesh is about 6%. In other words, the thing that you bought last year with 100 BDT, this year you have to buy with about 106 BDT. However, according to private estimates, the inflation rate here is close to ten percent. In other words, the product that you bought last year with 100 BDT, this year you have to buy with about 110 BDT. Or the matter can be explained in this way, if you deposited one lakh BDT last year, it has come down to 90,000 BDT due to inflation this year. So if you put money somewhere in a non-profit way, it will automatically go down by about ten percent every year due to inflation. So if you want to keep your savings the same amount year after year, then you have to deposit your money in almost any place in Bangladesh where you can earn at least ten percent per year. But this inflation process is very complicated to understand for many of us, particularly for them who have not enough knowledge about economics. As a result many of us, deposit our money every year and face a big loss but we can't realize that directly. And this become a vital problem here in Bangladesh now.
As there is automatic decrease of your deposited money every year, so it is better policy to invest your extra money in business than to deposit in a way where you can earn less than ten percent per year. Obviously there is 50-50 chances to be benefited or lost your money in business but there is no chance to loss your money automatically because of inflation rate. There is another vital issue here in Bangladesh. Bangladesh is a Muslim majority country and by our religion it is strictly prohibited to take risk free profit from any source. Again many of us who have not enough knowledge to make a business plan. So many Muslim family here in Bangladesh who have enough extra money, hold that money idle in bank without taking any profit. As a result they constantly loosing their money every year for inflation rate. Again their money is being remained idle.
As a result, at time of last lockdown in Bangladesh, our banks had a lot of liquid money in their hand. Most of this money was non-profitable deposited money from general people. That is very shocking for a developing country like Bangladesh where a noticeable number of people live under standard living margin. They even can't do anything because of money shortage situation in their hand even if they have enough potential. Isn't is too much ridiculous? A group of people hold their money idle and the other group of people can't do anything because of money shortage.
Again, if you go to that group of people who have lot of idle money and ask them to give you some money to make a business, they don't give you because of prejudice that their is a lot of risk to loss. This situation is like penny wise pound foolish. And it is not wanted to continue this situation. So we have to take proper step to improve this situation so that no amount of our extra money remain idle.
But the main authority who should take proper step for this situation is our government, who are the main culprits for this situation. Basically they don't want to make people interested to invest in many different source. Rather than they want people would deposit money to bank idle and after a while they will make a big crime in that bank and the bank will be bankrupted. You will be very surprised that in last decade from some of our banks, they crime thousands of crores of taka. I don't know when this situation will be better here. But it is sure that this government who has no mandate to rule this country, can't do anything good to develop this situation, even they don't want to develop this.
May Allah help us to eradicate this situation. Thanks for visiting me.
416.771 SRY