realities. in this context, we note that there have been recent efforts by the imf to promote the use of sdr as a potential reserve asset for the evolving international monetary system. for the sdr to take on this significant role, several prerequisites have to be in place. the sdr has to be accepted as a liability of the imf, has to be automatically acceptable as a medium of payment in cross - border transactions, be freely tradable and its price has to be determined by forces of demand and supply. as the sdr does not satisfy these conditions, it cannot be a reserve currency in the international payment system. in principle, one needs a global central bank to issue sdrs which take the characteristic of unit of global payment and settlement system. thus, we see the move to multicurrency world as a gradual evolution. another dimension of this issue is to change the composition of the sdr basket. going by the recent initiatives, if at all there is a move to alter the composition of the sdr basket, we could consider including currencies of those dynamically emerging market economies that satisfy the existing inclusion criteria : in particular, a fully convertible capital account and a market determined exchange rate. developments in the constituency 13. i now turn to developments in my constituency. bangladesh 14. bangladesh is steadily moving towards a higher growth trajectory that is largely inclusive, environment - friendly and well supported by continued high performance in the agriculture sector. external sector viability has benefited from export growth estimated at 30 percent and the strength of inward remittances. concerted efforts to address the shortage of power have improved the investment climate. however, inflation remains high, with pressures from global prices of fuel, food and fertilizers interacting with enhanced internal demand. revenue mobilization has risen by 28 percent till february 2011 strengthening fiscal sustainability. the budget deficit is expected to remain below 4. 5 percent of gdp thereby aiding overall macroeconomic stability. as import demand picks up on the back of domestic demand, some strains could build on the balance of payments, although the level of foreign exchange reserves would remain sufficient at the level of over four months of imports. accordingly, monetary policy is being tightened with the exchange rate being allowed to depreciate and cushion the balance of payments. over the medium term, the progressive removal of constraints on investment, domestic and foreign, particularly in the context of private and public sector partnerships in large infrastructure projects would enable bangladesh to embark upon double

although it was not as large as that in australia. 2 / 12 bis central bankers'speeches this difference reflects two factors. the first is that the prices of australia ’ s main commodity exports – iron ore and coal – increased by significantly more than the price of canada ’ s main commodity export, oil. the short - run supply curve in iron ore and coal tends to be very steep, so the prices for these steel - making commodities increased very sharply when chinese investment in property and infrastructure really took off. the second factor is that commodities make up a larger share of australia ’ s total exports than is the case for canada. both of our countries have also experienced a pronounced cycle in mining investment. not surprisingly, reflecting the larger movement in our commodity prices, the cycle has been bigger in australia. here, mining investment went from 2 per cent of gdp in the early 2000s to 9 per cent in 2012 ( graph 2 ). another difference with canada is that our main export partner, china, has grown at an average rate of almost 10 per cent over this period, compared with just 2 per cent average growth in canada ’ s main export partner, the united states. 3 / 12 bis central bankers'speeches both our countries accommodated the increase in mining investment without overheating. our flexible exchange rates played an important role here. given the larger cycle in mining investment here, the impact on the rest of the economy has been more pronounced. while many parts of our economy did well from the boom in mining investment, others did not as they dealt with the higher exchange rate and found it difficult and more expensive to hire workers. one illustration of this broad impact is the substantial decline in australia in non - mining investment as a share of gdp from the mid 2000s ( graph 2 ). by way of contrast, canadian non - mining investment has shown much less variation. for some time, a major factor shaping our forecasts for the australian economy has been a rebalancing of investment between the resources and non - resources sectors. we estimate that the decline of mining investment back to normal levels is around 90 per cent done. so this headwind, which has been weighing on gdp growth for some time, will blow itself out before too long. another headwind we have had for some years is the fall in commodity prices, but this has turned into a gentle tailwind since mid last year. since then the prices of all our main commodity exports have risen. this is good news for us, although we are