Bangladesh seeks US support for rebuilding after revolution

Following the downfall of then-prime minister Sheikh Hasina on August 5, Bangladesh's interim government, led by Muhammad Yunus, is seeking support from the United States to address the country's economic crisis. The US Treasury delegation's visit on September 15 marked a significant shift in diplomatic relations, as Yunus, a Nobel Peace Prize laureate, requested assistance to implement reforms and recover misappropriated assets. The US had previously imposed sanctions on Bangladesh's elite paramilitary unit, straining ties during Hasina's tenure. Bangladesh's economy is in dire straits, having received a $4.7 billion bailout from the IMF in 2023. The interim government aims to stabilize finances by seeking $5 billion from major creditors, including the IMF and World Bank, while also negotiating lower interest rates and extended loan terms from Russia and China. The textile industry, crucial for foreign currency, has been severely disrupted by the recent revolution, leading to a precarious foreign exchange reserve situation. The US Agency for International Development (USAID) has pledged over $200 million in aid, signaling a renewed commitment to support Bangladesh's recovery efforts. The interim government is under pressure to manage import bills, particularly for energy, as foreign exchange reserves have dwindled to just $20 billion, sufficient for only three months of imports. As Bangladesh navigates this transitional phase, the new leadership's approach to international relations and economic recovery will be critical in determining the country's future stability and growth.