Bangladesh economy will ride out pandemic crisis

Significance

In late May, it approved a three-month, USD200mn currency swap with Sri Lanka to help ease Colombo’s foreign exchange woes. The move underscores its growing economic strength, even as it battles the fallout of the COVID-19 pandemic.

Impacts

• The government will step up efforts to procure more COVID-19 jabs as it tries to speed up the vaccine roll-out.
• Bangladesh will attract more foreign direct investment, especially from Chinese- and Japanese-based multinationals.
• The central bank will continue to invest reserve assets in low-risk instruments overseas.