IMF Official visits Bangladesh
International Monetary Fund (IMF) deputy managing director Antoinette Monsio Sayeh begins a five-day visit to Bangladesh today.
Deputy Sayeh is visiting Dhaka to finalize a $4.5 billion support plan to support Bangladesh’s economic growth and stability while avoiding increased inflation. The measures come as a hot global market and the continued strength of the US dollar hurts developing countries.
The Bangladesh economy was one of the fastest growing in the world before the pandemic and subsequent global economic downturn. Now, its economy is bordering on crisis as trade deficits, rising fuel costs, growing inflation, and shrinking foreign currency reserves. All this is compounded by markets cutting costs due to changes in consumer spending, tampering economic progress.
Expect today’s deal to help the Bangladeshi economy. The loan is a largely precautionary measure for Dhaka to boost state funds and combat inflation as the nation’s pinched by shrinking currency reserves shrink and growing inflation.
The injection of an extra $4.5 billion will likely cool price increases in the short-term and allow Bangladesh to take precautionary measures following IMF advise, such as raising fuel prices. Medium-term stability depends on lowering global inflation and increasing exports, which is increasingly probable as US inflation eases.
