IMF Flags Signs of Capital Flight from Bangladesh Amid Election Uncertainty
• IMF identifies signs of capital flight from Bangladesh in 2022-23, including unusual outflows and unrealized export proceeds • Export shipment values grew 6.3% but export receipt growth was marginal, leaving $9.6B in unrealized proceeds, potentially indicating delays • Financial account saw outflows of $2.1B compared to typical inflows of 2.5% of GDP, reflecting capital flight • IMF cites uncertainty around elections as a potential factor in exporters withholding funds • Transitioning to more exchange rate flexibility is essential to rebuild external resilience, IMF argues, despite some adjustment costs