Inflation ( CCPI)1.7% (June 2024)
GDP5.3% (1Q 2024)
Unemployment4.3% (4Q 2023)
3M T-Bill Rate9.55%
12M T-Bill Rate10.07%
2Y T-Bond Rate10.55%/ 10.65%
4Y T-Bond Rate11.80% / 11.85%
Reserves $5.6Bn (June 2024)
Cum. Trade Deficit $2,180 Mn (May 2024 cumulative)
Cum. Fiscal DeficitLKR 361Bn (April 2024)

Moody's downgraded Bangladesh credit rating first time in a decade

InternationalJun 6, 2023
Moody's downgraded Bangladesh credit rating first time in a decade

Bangladesh proposed an increment of taxes in its annual budget released last week as it prepares to meet the conditions of its loan of USD 4.7Bn from the IMF. The move comes a day after Moody’s cuts Bangladesh’s debt into junk territory. External vulnerabilities and the deterioration of the country’s FX reserves are among the main reasons for the downgrade.

Although there have been some improvements, the ongoing scarcity of dollars and the decline in foreign exchange reserves indicate sustained pressures on Bangladesh’s external position. These pressures further exacerbate constraints on imports and subsequently lead to energy shortages.


Charts represents an assessment of the market environment as of the date indicated and it is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

The information presented does not take into consideration commissions, tax implications, or other transactions costs, which may significantly affect the economic consequences of a given strategy or investment decision. This document contains general information only and does not take into account an individual’s financial circumstances. An assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial advisor before making an investment decisions.