The narrowing trade deficit is attributed to a rise in export earnings coupled with a decline in import expenditure

However, the BB governor did not announce when Bangladesh Bank would introduce the flexible interest rate and exchange rate.

Bangladesh’s macroeconomic performance has significantly improved since the country entered the IMF’s $4.7 billion loan programme in January last year, but the bleeding of foreign currency reserves continues, putting the taka under pressure, the global lender said yesterday.

Bangladesh should allow greater flexibility in its exchange rate to address issues in its external account, particularly the deficit in the financial account, said the International Monetary Fund (IMF) today

Central bank data highlights continuing financial account deficit in the face of international currency outflow