Bangladesh is Facing Economic Crisis After Sri Lanka, Asks Help From IMF!! Check Now

 Bangladesh Asks For Help From IMF As It Is Facing Economic Crisis

Bangladesh has recently asked for help from IMF which stands for International Monetary Fund. Bangladesh asked IMF for help of 4.5 billion dollar as it is facing an economic crisis. In this article we will discuss why Bangladesh is suffering from this crisis and can its economic condition become like Sri Lanka.

There are two main reason behind Bangladesh’s economic crisis.

Ukraine War:

Due to the ongoing UkraIne war the prices of fuel went up all over the world including Bangladesh. They had to import expensive oil from other countries which led to a sudden fall in their foreign exchange reserve. If the foreign exchange reserve of any country becomes zero, then that country would not be able to import anything from other countries. As Bangladesh does not have a very close relationship with Russia, they were unable to import cheap Russian oil.

Loss of Remittances due to Pandemic:

The covid19 pandemic has caused damage to the Remittances, the overseas Bangladeshi workers used to send to their families in Bangladesh. A huge part of foreign exchange reserve of Bangladesh is dependent on Remittances.

One positive sign for Bangladesh is that they have not taken huge loans from China. The foreign debt on them is not very high, but the main reason for their economic crisis is foreign exchange deficiency. If Bangladesh does not get immediate help from IMF then it might face the same fate as Sri Lanka.