According to Dr Ahsan H. Mansur, executive director of the Policy Research Institute of Bangladesh, the predicted tapering could have a negative impact on business borrowing.
Borrowing from outside sources by Bangladesh’s private sector has increased in recent months, as it is far cheaper than the funds on the local money market.
At the end of March, the outstanding balance was $16.2 billion, up by $1.4 billion from December 2020.
Besides, the IMF created a fund worth $650 billion in SDR on August 23 which gives the member-states the right to access the dollar at essentially zero cost without an IMF programme.
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