Moody's downgrading on Bangladesh geopolitical, not economic: BB governor

Bangladesh Bank Governor Abdur Rouf Talukder has said the recent downgrade of the country's banking system by Moody's does not hold much significance for Bangladesh.

The central bank governor said the current state of Bangladesh's economy is significantly better than it was in 2010.

He stated that despite significant growth in Bangladesh's economy, including an increase in per capita income and foreign reserves exceeding $48 billion – compared to $10 billion in 2012 when Moody's first rated the country – Moody's has not revised its rating.

"I believe that Moody's downgrade of Bangladesh has more to do with geopolitical factors rather than purely economic considerations," the governor said.

He emphasised that he does not think Moody's downgrade will have an impact on foreign direct investment or remittance inflows to Bangladesh.

"Those who are involved in investing or sending remittances to the country are well aware of our economic background, and they will continue to do so based on that understanding.

"Moody's made the downgrading to issue sovereign bonds which we did not do. So, we do not care about this rating," said the governor.

Earlier, on 1 March, Moody's Investors Service revised the outlook on Bangladesh's banking system to negative from stable.