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���������ֳ� revised its Outlook on Bangladesh’s Long-Term Foreign-Currency Issuer Default Rating to Negative in September 2023 to reflect increased vulnerability to external shocks. It also reflects our view that the country’s incremental policy response, including exchange-rate changes, and continued support from external official creditors has been insufficient to stem the decline in reserves and resolve the domestic US-dollar liquidity strains. Reserves Under Pressure: The outlook for FX reserves remains challenging, owing to a managed exchange rate, elevated oil prices and a further relaxation of import restrictions. The IMF’s June-end FX reserve target was not met. We do not believe Bangladesh’s shift to a single exchange-rate mechanism will stem the decline in reserves, owing to implementation risks. We expect the current account deficit to widen through to 2025 and forecast reserve coverage of current external payments at about 2.6 months over 2024-2025.