Bangladesh is set to receive $3.5 billion in loans by June from various international lenders, including the World Bank, Asian Development Bank, and the International Monetary Fund (IMF), Bangladesh Bank Governor announced on May 14.
At a press conference held at the central bank headquarters, the governor confirmed that the IMF will disburse $1.3 billion as part of the ongoing $4.7 billion loan programme.
The release follows a new agreement between Bangladesh Bank and the IMF on implementing a market-based exchange rate system.
Effective immediately, the country has adopted a market-driven exchange rate to meet IMF conditions.
The governor said the rate is expected to remain near current levels due to improved dollar liquidity and assured that the central bank will intervene in cases of large foreign currency transactions to maintain stability.
Although a band will guide the exchange rate, its range will not be disclosed.
The agreement was finalised on May 13 after extensive discussions, overcoming earlier disagreements regarding the introduction of a more flexible exchange rate through a crawling peg system.
The IMF had previously withheld the instalment due to concerns about the limited flexibility of the exchange rate regime and the existence of multiple exchange rates. The IMF continues to push for a fully flexible system.
Bangladesh secured the $4.7 billion loan package from the IMF in 2023 and has so far received $2.3 billion in three instalments.
The upcoming disbursement in June will raise the total received to $3.6 billion.
