The Bangladesh Bank’s increase in foreign exchange reserves has been praised by the International Monetary Fund (IMF). “The accumulation of reserves is considered a central objective of the IMF-supported programme, particularly given that the country continues to face balance of payments pressures,” said Thomas Helbling, deputy director of the IMF’s Asia and Pacific Department. He stated that the objective of raising reserves is essential to lowering balance of payments risks in response to a question during a news briefing on Asia-Pacific economic trends held in Hong Kong on Friday.
In particular, he praised the central bank’s accomplishment in building up these reserves.This month, an IMF mission is scheduled to visit Bangladesh for the fifth assessment of the terms associated with the $5.5 billion loan, he said.
“They will conduct discussions with the authorities, and it remains to be seen what the outcome is. The mission will be in the field,” he said, The IMF will, however, also evaluate whether the methods of these interventions are consistent with the exchange rate regime that Bangladesh Bank (BB) has declared.
According to the IMF’s measurement technique, Bangladesh’s foreign exchange reserves increased from $19.93 billion a year earlier to $27.35 billion on October 16 due to the central bank’s purchases from the market and greater inflows than outflows.
