IMF raises concerns about Bangladesh’s economy as forex reserves fall

DHAKA: An International Monetary Fund (IMF) team conducted a staff visit to Bangladesh’s capital city Dhaka from April 25 to May 7, 2023, to discuss recent macroeconomic developments and implementation of its program.

At the conclusion of the visit, Rahul Anand, Mission Chief for Bangladesh issued a statement saying Bangladesh remains one of the fastest-growing economies in the Asia-Pacific region against a challenging economic backdrop.
However, the IMF official raised concerns about some of Bangladesh’s macroeconomic indicators.

Persistent inflationary pressures, volatility in global financial conditions, and a slowdown in major advanced trading partners continue to weigh on its growth, foreign currency reserves, and its currency Taka, it said.

“Against a challenging economic backdrop, Bangladesh remains one of the fastest growing economies in the Asia-Pacific region. However, 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,” Anand said.

According to reports, Bangladesh’s foreign currency reserves have slipped to a six-year low recently.

During the visit, the IMF team held meetings with Bangladesh Bank Governor Abdur Rouf Talukder, Finance Secretary Fatima Yasmin, and other senior government and Bangladesh Bank officials. IMF also met with representatives from the private sector, bilateral donors, and development partners.

“We would like to thank the authorities for candid discussions and their warm hospitality. We look forward to continuing our engagement in support of Bangladesh and its people,” the statement said. (ANI)