Bangladesh seeks IMF support

Bangladesh seeks IMF support. Bangladesh has asked the International Monetary Fund for support in riding out a financial shock triggered by volatile energy prices after the Russian invasion of Ukraine, officials said Tuesday.

The South Asian nation has experienced lengthy blackouts in recent weeks, sometimes for up to 13 hours a day, as utilities struggle to source enough diesel and gas to meet demand.

Tens of thousands of mosques around the country have been asked to curtail their use of air conditioners to ease pressure on the electricity grid, with power shortfalls compounded by a depreciating currency and dwindling foreign exchange reserves.

A senior finance ministry official, speaking on condition of anonymity, confirmed to media that Dhaka had sought an IMF credit line, without disclosing the amount.

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Local newspaper the Daily Star reported that Bangladesh was seeking $4.5 billion dollars from the Washington-based lender following a recent visit to the country by its representatives.

Authorities were grappling with a “crisis” because of rising international fuel prices after the Russian attack on Ukraine, junior planning minister Shamsul Alam told media.

“Our balance of payments is in the negative zone. We need to stabilise our exchange rate,” he said.

Economists say the Bangladeshi taka has effectively slid against the US dollar by around 20 percent in the past three months.

The depreciation of the local currency has further weakened the nation s finances, with the current account deficit hitting $17 billion.