BB Reduces EDF Fund in Line with IMF Guidelines

The Bangladesh Bank is likely to maintain the repo rate unchanged in its upcoming monetary policy for July-December 2024-25, aiming to stabilize inflation, which has recently moderated. The decision follows a series of earlier rate hikes, with the repo rate currently at 8%. Additionally, the mid-rate for the crawling peg exchange rate is expected to remain steady at Tk117. This decision comes amidst efforts to manage inflation and stabilize the exchange rate, with recent policies aiming to align formal and informal market rates for greater stability in currency exchange operations.

Bangladesh Bank is focusing on accurate reporting of export and non-performing loan (NPL) data following significant corrections. The actual data on exports and non-performing loans (NPLs) will be available from now onwards as the central bank.

Bangladesh Bank (BB) has attributed discrepancies in the country's export earnings to duplication in data reported by the National Board of Revenue (NBR) and the Export Promotion Bureau (EPB). The BB's verification system identified approximately $23 billion in duplicate export data over 20 months across the last two financial years.

Bangladesh Bank's recent adjustments to balance of payments data have reshaped perceptions of external economic pressures. The revisions, particularly in merchandise export figures, have been significant, revealing a 6.8% decline in exports during July-April FY24, contrasting sharply with earlier growth reports.

The central bank of Bangladesh uncovered six statistical anomalies leading to a significant correction in export data, revealing an inflated export value by nearly $14 billion for the July-April period of FY24. These inaccuracies, ranging from duplicate entries to miscalculations of fabric values and sample items, were discovered during a cross-verification of data from scheduled banks and the National Board of Revenue. The revisions have significant implications for economic assessments and policies, highlighting a long-standing discrepancy of over $12 billion in FY23.

Bangladesh's financial account has turned positive after a correction of export anomalies amounting to nearly $14 billion by the Bangladesh Bank and the Export Promotion Bureau. Initially reported at $47.47 billion, exports for July-April fiscal 2023-24 were adjusted downward to $33.67 billion.