The fall of former Prime Minister Sheikh Hasina on August 5 has reshuffled diplomatic and trade cards in Bangladesh. More than a month after the departure of the hated leader, the new head of the interim government, Muhammad Yunus, who inherits an economy on the brink of financial collapse, has chosen to turn to, among others, the United States, which is very critical of his predecessor. On the occasion of the visit of a high-level American delegation, the 2006 Nobel Peace Prize winner declared on Sunday 15 September that he was seeking Washington’s support. “rebuild the country, carry out vital reforms and recover stolen assets”The US Democratic administration has long supported Yunus.
This visit marks a new beginning between Washington and Dhaka. The United States became Bangladesh’s largest foreign investor during Sheikh Hasina’s 15-year rule, but relations between the two countries were tense. In particular, Washington had imposed sanctions against her elite paramilitary unit, the Rapid Action Battalion, accused of serious human rights violations. The “iron begum”, on the other hand, maintained privileged relations with India, where she took refuge after being ousted from power, as well as with China and Russia.
The US delegation in Dhaka this weekend was led by the Treasury Department’s Under Secretary for International Finance, Brent Neiman, and comprised mainly of trade and development policy players. It said it was ready to offer technical and financial assistance for reforms carried out by the interim government. The US agency for international development, USAID, signed an aid agreement on Sunday worth just over $200 million (or 180 million euros).
The textile industry is in turmoil
Bangladesh, once held up as a model of economic success, has benefited in 2023 from a $4.7 billion plan from the International Monetary Fund (IMF). To replenish foreign exchange reserves and stabilise finances, the head of the interim government had already announced, on Wednesday 11 September, that he would try to obtain $5 billion in aid from his main creditors: the IMF, the World Bank and the Japan International Cooperation Agency (JICA). “We are also seeking lower interest rates and longer terms for loans from Russia and China”he declared in his televised address to the nation.
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