The council's inaction is more amazing seen against the backdrop of the volatile call money and currency exchange markets in recent times that virtually begged for co-ordinated interventions. The council was supposed to come up with those corrective interventions, a central bank source observed.

Advocated by the World Bank and the International Monetary Fund, the council was formed on March 10, 2003 by amending the Bangladesh Bank (BB) Order, 1972. The amended order gave limited autonomy to the BB and assigned the council with co-ordinating fiscal issues between the central bank and the government so that corrective measures can be taken whenever needed.

Headed by the finance minister, the council is manned by the commerce minister, the BB governor, secretaries of the finance and the internal resources divisions, and the member (Programming) of the Planning Commission.

The high-profile body approved by parliament was supposed to sit at least once every three months to review the consistency of macro-economic policies and also to revise the limits and targets set in the budget during its formulation.

But it has not even tried to hold a meeting since its inception.

Meanwhile, the price of dollar against taka shot up from Tk 59 in November last to Tk 63 at the moment in the inter-bank market and even higher at customer level. The high exchange rate of dollar against taka prevails despite the central bank's interventions including releasing about $200 million in January and this month to cool down the market.

The inter-bank call-money rate also soared up to 70 to 75 percent recently from the normal level of 5 percent. The central bank believes it is happening due to foul play by certain commercial banks and risky lending behaviour of some others.

To keep the situation under control, the BB repeatedly pumped in hundreds of crores of taka through repurchase agreements.

The price of rice, which contributes 70 percent to the country's inflation, also started spiralling up across the country since the last year's twin floods. The price of imported rice also continued to soar as taka got devaluated meantime.

To keep the rice price low, the commerce ministry last week resorted to the Prime Minister's Office proposing reduction of taxes and duties on rice import, sources said.

But, they said, if the council had done its job, it could have addressed this issue automatically.

"I admit that the council has not have a meeting. But, the finance minister, the finance secretary and the Bangladesh Bank governor held meetings from time to time," said one of the council members requesting anonymity, "We just didn't sit with all the members, including the commerce minister."

He also admitted that a number of fiscal crises that came up recently could be better handled through a co-ordinated effort.

This is an example of the decisions the government takes under pressure of donors and then forgets to implement, a retired secretary remarked.

However, a finance ministry source claimed the council members are now considering holding a meeting very soon.