IMF Drafts Approval For Bangladesh To Receive Nearly $1.2 Billion.

(CTN News) – The International Monetary Fund (IMF) and Bangladesh, a country located in South Asia, have reached an agreement to release more than $1.2 billion of cash, according to a statement released by its Washington headquarters on Wednesday.

This information was provided in the statement.

The occurrence of these events coincides with a period in which Bangladesh is facing challenges as a result of a decrease in its foreign exchange reserves.

The International Monetary Fund (IMF) made the announcement that a “staff-level agreement” had been achieved to pay out the current tranche of three projects that are now being carried out.

This announcement came after two weeks of deliberations that took place in Dhaka, which is the capital of Bangladesh. On the other hand, the organization made it very apparent that the approval of the board was required in order for this arrangement to be finalized.

It was claimed in a statement that “the authorities have made significant progress on structural reforms under the IMF-supported program.”

This remark was given by the International Monetary Fund (IMF).

This development comprises the implementation of a fuel price adjustment system for petroleum products that is based on a formula. Among the things that were reported by the International Monetary Fund was this particular item.

However, the report did make the observation that “tightening global financial conditions and the persistence of high international food and commodity prices coupled with domestic vulnerabilities have led to persistently high inflation and declining foreign exchange (FX) reserves.”

“This has exacerbated pressures on the economy and heightened the complexity of macroeconomic challenges,” the findings of the research reveal. “This has also increased the complexity of the challenges they face.”

It is estimated by the International Monetary Fund (IMF) that Bangladesh’s gross domestic product (GDP) will expand by 5.4 percent during the fiscal year 2024. This improvement is expected to take place.

This result shows a decline from the growth rate of 6% that was observed in the previous year, and it is projected that the growth rate will begin to pick up in the year 2025.

According to the projections provided by the Fund, it is projected that the prices of food and commodities all over the world will decline in the coming year. This is “on the back of the continued tighter policy mix,” as noted in the quotation.

In addition, the Fund anticipates that inflation will continue to be high throughout the entirety of this year, hitting roughly 9.4%, before gradually declining to approximately 7.2 percent throughout the course of the year on average.

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