The IMF warned of risks to the Bangladesh’s economy, including inflation, growth, and falling FX reserves, as it concluded its mission under the USD 4.7 bln loan program. Reserves are anticipated to drop to USD 29.86 bln, the lowest in seven years. In April, exports declined 16.5%, while inward remittances fell 16% YoY. Bangladesh highlighted a flexible exchange rate and reforms to banks’ lending rates to the IMF team. Starting in July, banks will set their lending rates at a maximum of 3% above the six-month weighted average rates for T-bills. The rate corridor, an IMF condition, replaces the 9% cap on the lending rate. The second tranche of the IMF loan is expected in November.