Bangladesh Bank has discounted the Morose’s contemporary downgrade of Bangladesh’s sovereign credit ranking ranking, arguing it does now not precisely replicate the principal political and financial growth made since July 2024, according to an announcement issued on Thursday (21 November).
The international credit ranking ranking company Morose’s on 19 November lowered Bangladesh’s sovereign ranking from B1 to B2 and maintained its rapid issuer ranking as No longer Top, while also shifting the outlook to negative.
The ranking company cited heightened political risks and most likely financial challenges as reasons for the downgrade.
On the opposite hand, central bank contends that these assessments fail to be aware key reforms and enhancements initiated by the intervening time govt following a historical political transformation earlier this 300 and sixty five days, acknowledged the discharge.
In the wake of a student-led uprising, an intervening time govt, headed by Nobel laureate Professor Muhammad Yunus, took effect of business in August 2024. The novel govt has launched huge-ranging reforms geared towards stabilising the economy, tackling corruption, and strengthening governance, it added.
Economic reforms and stabilisation measures
Bangladesh Bank outlined quite a lot of key measures and achievements under the most up-to-date administration that it believes describe clear financial strides:
A more comprehensive review wished
Bangladesh Bank has expressed its perception that Morose’s downgrade fails to acknowledge the broader image of ongoing reform efforts and financial stabilisation. The central bank argues that the ranking company’s review is a “backward-making an try” perspective and does now not fully legend for the clear modifications under the novel govt, acknowledged the discharge.
“Morose’s is making an try by the rear-investigate cross-take a look at replicate while the vehicle is transferring forward,” the cenbank acknowledged, urging the company to habits a more thorough and on-the-floor review of Bangladesh’s reforms and financial outlook. BB believes that with continued reforms, backed by both home political make stronger and international partnerships, the economy is on a course to restoration.
Bangladesh Bank has known as for a more comprehensive review of the country’s financial scenario, one which involves consultations with key stakeholders and first-hand observations. Very most practical with such an advance, BB asserts, can Morose’s present a honest and appropriate evaluation of Bangladesh’s evolving financial panorama, added the discharge.
Having a watch forward
Despite the challenges that stay, Bangladesh’s economy is undergoing principal transformation. The intervening time govt’s efforts to stabilise the economy and lay the groundwork for sustainable growth replicate a clear long-timeframe outlook, which Bangladesh Bank believes will within the raze be recognised by international credit ranking ranking agencies, the discharge also acknowledged.
As the country continues to place into effect indispensable reforms and receive make stronger from international pattern companions, central bank remains assured within the resilience of the economy and its ability to weather future challenges.
