Govt to form banking commission soon for financial sector reforms

The interim government of Bangladesh plans to form a banking commission to reform the struggling financial sector. A paper outlining reforms will be published within 100 days. The government will maintain a contractionary monetary policy to curb inflation, which reached 11.66% in July. To increase foreign exchange flow, the band of the crawling peg will be widened to 2.5% from 1%. This follows the introduction of a crawling peg mid-rate of Tk 117 in May, allowing for taka depreciation amid falling forex reserves.