Bangladesh to receive $1.3 billion from IMF under new deal: BB Governor

NN Online:

Bangladesh has reached a staff-level agreement with the International Monetary Fund (IMF) to secure the next installments of its ongoing $4.7 billion loan package, Bangladesh Bank Governor Dr Ahsan H Mansur announced on Wednesday.

Speaking virtually from Dubai during a press briefing, Dr Mansur confirmed that the IMF will disburse $1.3 billion in two tranches by June 2025.

He indicated a shift toward a more flexible exchange rate regime for the US dollar but assured that the market would remain stable due to an adequate supply of foreign currency.

Addressing concerns about inflation, Dr Mansur stated that loosening the exchange rate would not trigger price hikes, as Bangladesh’s macroeconomic indicators have already stabilised.

In addition to the IMF funds, the country is expected to receive another $3.5 billion in foreign loans from other international agencies by June 2025. These funds will come from the World Bank, the Asian Development Bank (ADB), the Japan International Cooperation Agency (JICA), and the International Infrastructure Development Bank.

The central bank governor also issued a stern warning to market syndicates, stating that Bangladesh Bank will closely monitor the foreign exchange market to prevent manipulation.

He dismissed allegations of an abnormal surge in dollar rates, noting that banks and authorised exchange houses are required to submit exchange rate data twice daily.

Dr Mansur reiterated that the central bank stands ready to intervene in the currency market, including selling dollars when necessary, to stabilise the exchange rate and ensure market discipline.