BIG relief for Anti-India Bangladesh leader Yunus as cash-strapped Bangladesh gets IMF loan worth Rs...
In a major development, Bangladesh has secured an IMF loan, providing much-needed financial relief to the cash-strapped nation. Bangladesh on Wednesday agreed to the International Monetary Fund's (IMF) condition of adopting a market-determined exchange rate to unlock stalled loan disbursements.
According to a PTI report, Bangladesh Bank Governor Ahsan H Mansur on Wednesday announced the adoption of a managed floating exchange rate with immediate effect to comply with IMF conditions, paving the way for the release of the stalled loan.
'Bangladesh will receive a total USD 3.5 billion by June from different multi-donor agencies, including the WB (World Bank), ADB (Asian Development Bank) and IMF,' Bangladesh Bank Governor Ahsan H Mansur was quoted as saying by news agency PTI in a virtual press conference from Dubai. The report further mentioned that the central bank governor expected the 'managed exchange rate' to be around the existing rate due to available dollar liquidity.
Central bank officials said the IMF has agreed to release the stalled fourth and fifth tranches of the loan by June, following the resolution of a prolonged disagreement over exchange rate flexibility.
They noted that the announcement signaled the shift to a 'market-based' exchange rate regime, marking the end of the partially flexible system that had been in place until now.
Under the new system, the exchange rate will operate within a specified band. However, the Bangladesh Bank did not provide further details about the mechanism. It did confirm the creation of a USD 500 million stabilisation fund, intended to help maintain stability in the exchange rate.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
2 hours ago
- Time of India
GCC GDP 2024: Real and nominal figures differ, but both show non-oil sectors make up over 70%
In 2024, non-oil sectors made up 77.9% of nominal GDP and 70.6% of real GDP across the GCC/ Image: FIle The Gulf Cooperation Council (GCC) economies showed steady growth in 2024, with rising contributions from non-oil sectors offsetting a decline in oil output. Real GDP rose 3.3% in the fourth quarter, backed by strong performance in manufacturing, trade, and construction. This marks a continuing shift away from oil dependence, reinforced by national reform programs and increased investment in non-hydrocarbon industries. Real GDP – Growth despite oil sector contraction In constant price terms, or real GDP, the total output of the six GCC countries rose by 3.3% in Q4 2024, reaching USD 456.3 billion, compared to USD 442.3 billion in Q4 2023. Quarter-on-quarter, the region's economy expanded by 1%, rising from USD 452.2 billion in Q3 2024. The bulk of this real GDP came from non-oil sectors, which made up 70.6% of total real GDP in Q4. In contrast, oil-related activities contributed the remaining 29.4%. Looking at the year as a whole, the overall real GDP across the GCC rose by 2.4%. However, this masks a notable divergence between sectors: Non-oil GDP increased by 3.7%, driven by robust growth in industry and services. Oil GDP declined by 0.9%, primarily due to voluntary production cuts under the OPEC+ framework. Country-wise, Qatar recorded the highest annual increase in real GDP at 4.5%, followed by the UAE at 3.6%, and Saudi Arabia at 2.8%. In Saudi Arabia, non-oil activities grew by 4.6%, while oil activities contracted by 4.5%, indicating a substantial shift in the country's economic composition. Nominal GDP – Growth tempered by market prices In nominal terms (i.e., unadjusted for inflation), the GCC's GDP rose by 1.5% year-on-year, reaching USD 587.8 billion by the end of Q4 2024, up from USD 579 billion in Q4 2023. Unlike real GDP, nominal GDP reflects current market prices, and can be influenced by inflation or deflation. While the overall increase was modest, the non-oil sector's contribution to nominal GDP was higher at 77.9%, showing a broader diversification trend in monetary terms. The remaining 22.1% came from oil activities, a significantly lower share compared to their contribution in real terms. This disparity suggests that while oil remains a large physical output driver, price pressures and production curbs have diminished its monetary weight in the economy. Sector contributions – Manufacturing and trade lead A closer breakdown of nominal GDP reveals the growing role of diverse non-oil industries: Manufacturing: 12.5% Wholesale and Retail Trade: 9.9% Construction: 8.3% Public Administration and Defence: 7.5% Finance and Insurance: 7% Real Estate Activities: 5.7% Other Non-Oil Activities: 27% These sectors have underpinned the GCC's non-oil expansion, with each contributing steadily to national and regional outputs. In Saudi Arabia specifically, the National Industrial Development and Logistics Program (NIDLP) contributed SAR 986 billion (USD 262.8 billion) to non-oil GDP, accounting for 39% of Saudi Arabia's non-oil economic output. Non-oil activities now represent 55% of Saudi Arabia's total GDP. This growth has been supported by government spending, which increased by 2.6% in Saudi Arabia during 2024, enabling momentum in infrastructure, services, and industry. Reform agendas and future outlook The GCC's shift from oil-dependency to broader economic resilience is no longer just policy ambition — it is increasingly reflected in macroeconomic data. Growth in 2024 was driven by sectors aligned with national strategic reforms: Saudi Vision 2030 UAE Economic Vision Qatar National Vision 2030 Oman Vision 2040 These plans emphasize tourism, logistics, manufacturing, finance, and digital infrastructure, backed by regulatory changes and significant public-private investment. The year's data confirms that these structural transformations are not only underway but are starting to deliver tangible economic diversification. Despite setbacks from oil market volatility, the region is expanding in real output, broadening its industrial base, and recalibrating its sources of long-term growth. Real vs. nominal GDP – Simplified To help readers understand the two metrics used: Real GDP adjusts for inflation, showing actual physical output growth or contraction. It's more useful for comparing economic performance over time. Nominal GDP is the economy's total value of goods and services using current prices, reflecting the monetary size of the economy but can be skewed by price changes. In the GCC's case, real GDP growth (3.3%) outpaced nominal GDP growth (1.5%), which suggests that while the region is producing more goods and services, price effects (like lower oil prices) dampened the apparent value increase.
The Print
3 hours ago
- The Print
India rejects criticism over its procurement of Russian crude oil; calls out US, EU
The Ministry of External Affairs (MEA) issued a rare statement rebutting the criticism against New Delhi's energy ties with Moscow, hours after US President Donald Trump threatened more tariffs on India. Firmly rejecting the criticism, India pointed out the continuing trade relations the US and the European Union have with Russia. New Delhi, Aug 4 (PTI) India on Monday mounted a sharp counterattack on the US and the European Union for their 'unjustified and unreasonable' targeting of New Delhi for its procurement of Russian crude oil. India has been targeted by the United States and the EU for importing oil from Russia after the commencement of the Ukraine conflict, the MEA said. In fact, India began importing from Russia because traditional supplies were diverted to Europe after the outbreak of the conflict, it said. 'The US at that time actively encouraged such imports by India for strengthening global energy markets stability,' it added. The MEA said India's imports are meant to ensure predictable and affordable energy costs to the Indian consumer. 'They are a necessity compelled by global market situation. However, it is revealing that the very nations criticizing India are themselves indulging in trade with Russia,' it said. 'Unlike our case, such trade is not even a vital national compulsion,' it added. The MEA said the Europe-Russia trade includes not just energy, but also fertilizers, mining products, chemicals, iron and steel and machinery and transport equipment. 'Where the US is concerned, it continues to import from Russia uranium hexafluoride for its nuclear industry, palladium for its EV industry, fertilizers as well as chemicals,' it said. 'In this background, the targeting of India is unjustified and unreasonable. Like any major economy, India will take all necessary measures to safeguard its national interests and economic security,' the MEA said. PTI MPB KVK KVK This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
News18
4 hours ago
- News18
IndusInd Bank appoints Rajiv Anand as MD and CEO for 3 years
Agency: PTI Last Updated: New Delhi, Aug 4 (PTI) IndusInd Bank on Monday announced the appointment of Rajiv Anand, former Deputy Managing Director of Axis Bank, as its new MD and CEO. The board, basis approval of the Reserve Bank of India (RBI), have at its meeting held on August 4 approved the appointment of Rajiv Anand as 'Additional Director' in the category of Managing Director and CEO and Key Managerial Personnel of the bank for three years, IndusInd Bank said in a late evening regulatory filing. The appointment is effective from August 25, 2025, up to August 24, 2028, subject to the approval of the shareholders of the bank, it said. He would assume charge at a time when the bank is reeling under a slew of issues stemming from alleged irregularities of the top management in recognising bad loans and trading reverses. Anand retired as deputy managing director of Axis Bank on August 3 upon completion of his third term as a director on the bank's board. He joined Axis Asset Management Co. Ltd. in 2009 as its founding MD and CEO. In his next assignment, he was appointed president of retail banking at Axis Bank. Subsequently, he was inducted into the board of the Axis Bank and took over as the head of wholesale banking. Last month, the RBI extended the tenure of the committee of executives of the bank for one month as IndusInd Bank expected the regulator's clearance for its new MD and CEO by that time. The situation arose following the resignation of MD and CEO Sumant Kathpalia in the wake of accounting lapses costing Rs 1,960 crore to the lender in the 2024-25 fiscal year. The private sector lender in March reported the accounting lapses in the derivative portfolio, estimated to have an adverse impact of approximately 2.35 per cent of the bank's net worth as of December 2024. The original tenure of the Committee of Executives constituted on April 29 was till July 28, 2025. PTI DP RHL view comments First Published: August 04, 2025, 23:45 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
