Bangladesh economy strong, says IMF

WASHINGTON (Reuters) - Bangladesh's economy is set to remain healthy due to buoyant exports, strong remittance flows and reform measures, the International Monetary Fund said on Friday.

It said the exchange rate level was "appropriate," but added: "With reserves now at a more comfortable level, exchange market intervention should be confined to alleviating disorderly conditions, and thus allowing greater flexibility in the nominal rate to support stabilization objectives.

It called for an overhaul of the tax system to improve revenue collections, which are not enough to meet development needs or to support reductions in tariffs and supplementary duties.

IMF directors welcomed fuel price adjustments by the state-owned petroleum company, but called for more timely adjustments through an automatic pricing formula.

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