Macro economy shows stability, says Bangladesh Bank governor

Bangladesh Bank Governor Dr Ahsan H Mansur on Thursday said that the country’s foreign exchange reserves are stable and gradually increasing, despite the delayed disbursement of loan installments from the International Monetary Fund (IMF).

Speaking at an event of Economic Reporters Forum (ERF) in the capital, Dr Mansur highlighted the central bank’s primary objective of reducing inflation to a range of 5 to 7 percent by the end of the year.

He acknowledged the slowdown in private sector credit growth, attributing it to declining bank deposits and increased government borrowing from the banking system.

Dr Mansur noted that the situation is improving as Treasury bill bond rates have declined from 12.5 percent to below 10 percent. ‘This indicates a reduction in government borrowing from the banking sector, paving the way for increased private sector credit growth,” he added.

The Governor said that Bangladesh’s macroeconomic position has reached a stable state, with a steady exchange rate and a surplus in the balance of payments.

He described this as a significant achievement following the recent political changes in the country.