Bangladesh anticipates receiving a total of US$3.5 billion in loans by June from various multilateral development partners, including the World Bank, Asian Development Bank (ADB), and the International Monetary Fund (IMF).
Bangladesh Bank (BB) Governor Ahsan H Mansur announced today, “The IMF has agreed to disburse US$1.3 billion in June as part of the US$4.7 billion loan package.”
The Governor disclosed this information during a virtual address at a press conference held at the central bank’s headquarters in the city.
Mr. Mansur also stated that a decision has been made to adopt a market-based exchange rate regime, allowing market forces to determine the value of the dollar.
He commented, “Bangladesh’s economy demonstrates positive performance. The current account deficit is manageable, and our reserves have increased without external support. We believe the current juncture is appropriate for this transition. We project the exchange rate will remain stable due to robust inflows from exports and remittances.”
The Governor clarified that this does not imply an unrestricted dollar selling price, noting, “We anticipate the rate to fluctuate around the present level.”
Regarding the market-based exchange rate, he expressed optimism that it would remain close to the existing rate, citing increased liquidity in the foreign exchange market due to a rise in US dollar inflows.
He further added that banks were informed about the market-based exchange rate during a meeting held today.
The Governor also indicated that the central bank will intervene in the event of substantial foreign payments to maintain exchange rate stability.
Prior to this announcement, on 13 May, the Bangladesh Bank finalized an agreement with the IMF regarding the implementation of greater exchange rate flexibility following a series of discussions led by the Governor.
