Bangladesh: Staff Report for the 2001 Article IV Consultation

Author: International Monetary Fund

This 2001 Article IV Consultation highlights that Bangladesh's economy became progressively more fragile after the mid-1990s owing to a persistent pursuit of expansionary fiscal and monetary policies along with slow progress on needed structural reforms, especially in the banking and state-owned enterprises (SOEs) sectors. Rising credit demands of the government, the SOEs, and the private sector were readily accommodated by monetary policy. These growing domestic imbalances were reflected in pressures in the foreign exchange market and by a marked decline in international reserves.

Volume/Issue: Volume 2002 Issue 113

Publication date: June 2002

ISBN: 9781451804065

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Topics covered in this book

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Business and Economics , Political Science , Banks and Banking , Exports and Imports , Public Finance , Public Policy - Social Services and Welfare , ISCR , CR , government , deficit , cash budget deficit , transaction , banking system credit , interbank money market rate , cash expenditure , expansionary fiscal policy , Poverty reduction , Commercial banks , Exchange restrictions , Global

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Summary

This 2001 Article IV Consultation highlights that Bangladesh’s economy became progressively more fragile after the mid-1990s owing to a persistent pursuit of expansionary fiscal and monetary policies along with slow progress on needed structural reforms, especially in the banking and state-owned enterprises (SOEs) sectors. Rising credit demands of the government, the SOEs, and the private sector were readily accommodated by monetary policy. These growing domestic imbalances were reflected in pressures in the foreign exchange market and by a marked decline in international reserves.