Bangladesh has expected to receive a total of US$3.5 billion in loans by June from different multilateral development partners, including the World Bank, Asian Development Bank (ADB) and the International Monetary Fund (IMF).
“Now, the IMF agreed to release $1.3 billion of the $4.7 billion loan package in June,” said Bangladesh Bank (BB) Governor Ahsan H Mansur here today.
The governor disclosed the information through joining virtually at a press conference of the central bank at its headquarters in the city.
Mansur also said they have taken decision to go for a market-based exchange rate regime, allowing the dollar rate to be determined by market forces.
“Bangladesh’s economy is doing well. The current account deficit is manageable, and our reserves have risen without external support. We believe the time is right. I expect the rate to remain stable due to strong inflows from exports and remittances,” he said.
The governor said it does not mean the dollar can be sold at any price. "We expect the rate to hover around the current level," he noted.
On the market-based exchange rate, he expressed the hope that it would be around the existing rate as liquidity in the foreign exchange market is increasing due to a rise in the inflow of US dollars.
Banks have already been informed about market-based exchange rates at today’s meeting, he added.
He also said the central bank will intervene in case of large foreign payments to keep the rate stable.
Earlier on 13 May, the Bangladesh Bank finally reached an agreement with the IMF over the implementation of greater exchange rate flexibility after a series of meetings conducted by the governor.
