Dhaka: In its final report for $4. 7 billion loan programme, the International Monetary Fund warned of economic dangers to Bangladesh, including inflation, growth, and foreign reserves.
“Persistent inflationary pressures, elevated volatility of global financial conditions, and slowdown in major advanced trading partners continue to weigh on growth, foreign currency reserves, and the Taka,” according to an IMF press release following the conclusion of the staff team visit on May 7.
Later this year, the IMF will conduct the first review of its extended credit facility, extended fund facility, and resilience and sustainability facility agreements, according to the press release. After two months' worth of import bill payments during next week, reserves are predicted to drop to $29.8 billion, the lowest level in seven years.
Exports fell 16. 5% to $3. 9 billion in April from a year earlier as orders from clothing retailers slowed. Inward remittances that help the country’s balance of payments declined 16% year on-year to $1. 6 billion in April. Banks will be allowed, starting July, to set their lending rates at a maximum of 3% above six month weighted average rates for Treasury bills.