Bangladesh seeks $4.5 billion IMF loan as its reserves shrink
- Bangladesh has asked International Monetary Fund (IMF) for $4.5-billion loan to ease pressure from depreciating currency and shrinking foreign exchange reserves.
D-8 (Developing 8)
- Members: Egypt, Iran, Malaysia, Nigeria, Pakistan, Turkey, indonesia and Bangladesh
- Area of discussion: Alternative trade financing such as cross-currency swap, barter and blockchain to address foreign currency reserves vulnerabilities.
Current Situation
- Due to COVID-19 pandemic and global economic developments, every member country is facing
- Foreign reserve and currency vulnerabilities
- Supply chain disruptions
- Inflation, energy and
- Food security risks.
- Bangladesh has suspended operations in diesel-run power plants to ease pressure on cost of imports.
- Central bank has taken measures to reduce imports of luxury goods amid shortages of dollars in banks.
Prelims Take Away
- D-8 countries
- IMF