“Advancing the reform agenda is critical to restoring economic stability, protecting the vulnerable, and supporting inclusive and environmentally sustainable growth.”
One dirham fetches 32.91 Bangladeshi takas.
More funds released
There will also be a further $453 million releasing from the IMF to help the Bangladesh economy better cope with the consequences from climate change.
“Bangladesh’s macroeconomic challenges have increased since the popular uprising in the summer of 2024, which led to the ouster of the previous government,” the IMF noted in a statement.
“The timely formation of an interim government has helped stabilize political and security conditions, fostering a gradual return to economic stability.”
‘Worsening economic outlook’
According to the IMF, “However, the economic outlook has worsened due to persistent political uncertainty, continuation of tighter policy mix, rising trade barriers, and increasing stress in the banking sector.
“The authorities are fully committed to implementing necessary policies under the program and have recently pressed forward with critical reforms to increase exchange rate flexibility and boost tax revenues.”
Waiver
In another positive for the Bangladesh government, the IMF’s Executive Board also approved a ‘modification’ of performance criteria.
This means it will get a ‘waiver’ for the ‘non-observance of the performance criterion related to the non-imposition and non-intensification of exchange restrictions’.
This is based on the ‘temporary nature of the non-observance and the implementation of corrective measures’, the IMF said.
Manoj Nair, the Gulf News Business Editor, is an expert on property and gold in the UAE and wider region, and these days he is also keeping an eye on stocks as well.
Manoj cares a lot for luxury brands and what make them tick, as well as keep close watch on whatever changes the retail industry goes through, whether on the grand scale or incremental.
He’s been with Gulf News for 30 years, having started as a Business Reporter. When not into financial journalism, Manoj prefers to see as much of 1950s-1980s Bollywood movies. He reckons the combo is as exciting as it gets, though many will vehemently disagree.