PM Modi, Sheikh Hasina to inaugurate Maitree Power Project in Bangladesh

[bluesky]

Foreign debt is paid back by export earnings, not from domestic revenue. If exports fall, even if domestic revenue remains constant, you can't pay back dollars using taka.

Another doctorate of economics here!!! All payments are included and passed first in the budget. It is not directly from the export earnings. It is paid from the internal revenues earned by the finance ministry.

The incoming dollars are owned by the Bangladesh Bank, remittance or export earnings. BB pays the owners of those dollars in Taka, and the GoB has to buy those dollars by paying Taka to BB.

Now, if revenues are in short supply, the govt has to print new paper money and if it buys dollars with this new money, there will be equivalent inflation because this money will circulate through economic activities.

Please learn more and teach me. But, you are completely out of focus in your previous statement.

 

[StraightEdge]

I thought Bangalore is on the east side of India on the BoB coast. i find it different after searching the map.

Our fishermen have just started catching Hilsha, still small in size that will grow more than 1.5 kg in a few weeks.

So, ask Mamata Didi to send a request letter for a few thousnds tons and wait.
View attachment 866908

I am sure she can even write a poem or a song if we get more of these. As someone who hardly gets to eat proper quality ilish/hilsa, we will always love some more. One other thing is the freshness, they never taste as good if they are kept in freezing conditions for a long time.

 

[Realtalk108]

Now, if revenues are in short supply, the govt has to print new paper money and if it buys dollars with this new money, there will be equivalent inflation because this money will circulate through economic activities.

I said, if exports fall, even if domestic revenue remains constant, you still can't pay back dollars using taka. BB doesn't have an unlimited supply of dollars.

It doesn't matter how efficient or productive you are domestically. With paper currency, the only way to import something is either export or forex loan. The nature of this exchange is hidden under a few layers of transactions like you mentioned. But that's just a few extra layers over the real thing - forex earnings.

In any case BD's current problem isn't with domestic revenue. It's not exports either. It's sudden and immense increase in import cost of a crucial item.

 

[UKBengali]

Foreign debt is paid back by export earnings, not from domestic revenue. If exports fall, even if domestic revenue remains constant, you can't pay back dollars using taka.

BD has plenty of export (+ remittance) to pay back the money. The problem is that LNG prices have shot up to absurd levels now. BD can buy LNG from Russia, but that would adversely affect relations with EU + US - BD's chief export destination.

It's a Catch-22 situation. I am sure, right now Dhaka is re-evaluating its decision to rely mainly on gas based thermal power.

Dude did you miss my post?

Roopur nuclear will come online in 2023 and a Chinese coal plant came online I think in 2021. A Japanese coal based power station is due online I think in 2023.

 

[Realtalk108]

Dude did you miss my post?

Roopur nuclear will come online in 2023 and a Chinese coal plant came online I think in 2021. A Japanese coal based power station is due online I think in 2023.

Roopur + other coal based thermals are definitely good decision.

 

[UKBengali]

Roopur + other coal based thermals are definitely good decision.

Hasina is a great leader and BD’shis are lucky to have her.

 

[Bilal9]

Rampal won't be inaugurated before September 2022. Even then, major works will remain unfinished.