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%
USD/LKR303/304
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.

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