IMF Staff Country Reports

Bangladesh has made substantial progress in strengthening macroeconomic conditions and structural policies. Strong vigilance, guided by adherence to programmed deficit targets, is needed, however. The strengthening of debt management practices now under way will reinforce debt sustainability. Restrained monetary policy has brought down inflationary pressures and supported the rebuilding of reserves, and there is a need for regulatory reforms to address vulnerabilities in the banking system. A comprehensive review of foreign exchange regulations would provide a firm guide to increase the attractiveness of Bangladesh to foreign direct investment (FDI) and portfolio investment flows.