This decision is a pragmatic step, regardless of whether it was motivated by the necessity of meeting IMF program conditions for the 4th and 5th disbursements
The central bank will allow the exchange rate of the dollar to be determined by market forces
The central bank is likely to issue a circular in this regard today.
The fourth tranche of the instalment was deferred due to disagreements and now talks are going on to release two tranches at once.
The time is right for Bangladesh to move towards a more flexible exchange rate regime, said Chris Papageorgiou, mission chief of the International Monetary Fund (IMF) to Bangladesh.
IMF presents target, revises GDP growth to 4%
The visiting mission of the International Monetary Fund (IMF) is prioritising four conditions for releasing two instalments of an ongoing $4.7 billion loan programme, according to Finance Adviser Salehuddin Ahmed.
Revenue collection fell significantly short of the International Monetary Fund’s (IMF) target in the first six months of the current fiscal year, with the floor for the fourth instalment of an ongoing $4.7 billion loan programme proving too ambitious.
The International Monetary Fund (IMF) has suggested greater exchange rate flexibility to preserve reserve adequacy, warning failure to do so may create further imbalances in the currency market.
Bangladesh will have to comply with 33 new conditions by June next year in order to receive the next two instalments under the International Monetary Fund’s $4.7 billion loan programme.
Tax collection soared nearly 14 percent in the first half of the fiscal year (FY) 2023-24
