Bangladesh Bank Governor Dr Ahsan H Mansur said on Thursday that the nation’s foreign exchange reserves remain stable and are gradually increasing, despite delays in IMF loan installments.
Speaking at an event hosted by the Economic Reporters Forum (ERF) in Dhaka, Dr Mansur outlined the central bank’s key objective of reducing inflation to between 5 and 7 percent by the end of the year.
He acknowledged a slowdown in private sector credit growth, attributing it to declining bank deposits and increased government borrowing from the banking system.
However, he noted signs of improvement, as Treasury bill bond rates have dropped from 12.5 percent to below 10 percent. “This decline indicates a reduction in government borrowing from the banking sector, which could pave the way for enhanced private sector credit growth,” he added.
The Governor further highlighted that Bangladesh’s macroeconomic position has stabilized, marked by a steady exchange rate and a surplus in the balance of payments—a significant achievement following recent political changes in the country.
