Bangladesh’s leading economists has issues a warning that amidst weakening currencies, Bangladesh exports is set to face tough competition especially in the ready-made garment (RMG) sector. Indonesia's Rupiah, Indian Rupee, Turkish Lira, South African Rand have all weakened substantially against US dollar since May last.
Ahsan H Mansur, Executive Director at the Policy Research Institute of Bangladesh (PRI), said, "Our concern is about RMG and it is set to face the toughest competition from its rival nations." Turkey is one of the largest apparel-making countries with its largest share in Europe and its currency weakening means that its export prices are becoming cheaper.
Mansur said Bangladesh's exports might fall substantially due to the weakening of currencies of Turkey and Indonesia. Bangladesh gets duty benefits as a least developed country (LDC) in the EU and it is around 12 -15 per cent. But currency depreciations in Turkey, Indonesia and India are narrowing down this difference.
Zaid Bakht, Director (Research) at the Bangladesh Institute of Development Studies (BIDS) said the new phenomenon with respect to fall in value of currencies in emerging economies should be a 'headache' for Bangladesh which will affect the country's export earnings. Bangladesh earns more than $20 billion from export of woven and knit garment.