The International Monetary Fund has advised Bangladesh to focus on containing inflation and rebuilding external resilience in the near-term as the global lender approves the second tranche of $4.7 billion loans for the country. This will require a calibrated monetary policy tightening, supported by a prudent fiscal policy stance, a more flexible exchange rate system, and growth–boosting reforms, Rahul Anand, IMF Mission Chief for Bangladesh, said in a media briefing. A greater flexible exchange rate system will help alleviate foreign exchange pressures and rebuild external buffers, Rahul said on Thursday, according to a statement from the IMF. Second, modernising the monetary policy framework and improving policy transmission will foster macroeconomic stability. Further reforms to modernise the exchange rate framework and strengthen foreign currency reserve management would enhance external resilience.

Source: bd News24 December 15, 2023 19:12 UTC