The International Monetary Fund (IMF) has underscored the significance of meeting the foreign exchange reserve target (designated for March 2024)
This stance was reaffirmed during a meeting held recently between IMF officials and representatives from the Bangladesh Bank even as the IMF delegation’s visit aimed to evaluate the financial landscape before authorising the disbursement of the third instalment of the $4.7 billion loan.
According to the terms of the IMF loan agreement, Bangladesh was required to maintain reserves of $19.26 billion by March 2024. However, the actual reserves currently stand at less than $16 billion, signalling a shortfall.
IMF upheld its stand during recent meeting with Bangladesh Bank officials.
IMF team is visiting Bangladesh to assess financial outlook before releasing third instalment of $4.7 billion loan.
As per conditions of loan from IMF, it was set as a target to hold $19.26 billion in reserves in March 2024; but actual reserves are reportedly less than $16 billion.
In response to the IMF’s expectations, Bangladesh Bank officials have presented a range of factors contributing to the reserve deficit, expressing hope that the IMF would consider Bangladesh’s perspective.
The loan deal, aimed at alleviating the dollar crisis, was inked by the government with the IMF.
Meanwhile, Dr. Ahsan H Mansur, executive director of the Policy Research Institute of Bangladesh (PRI), noted the challenges faced by Bangladesh in meeting the March target, despite the IMF’s relaxation of net reserve requirements even as he anticipates that the IMF may either establish a new benchmark for net reserves or postpone the disbursement of the third tranche of the $4.7 billion loan.
Fibre2Fashion News Desk (DR)
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