Bangladesh Secures $1.3 Billion Loan from IMF

Bangladesh has signed a staff-level agreement with the International Monetary Fund (IMF) to unlock the next instalments of its ongoing $4.7 billion loan programme, according to Bangladesh Bank Governor Dr Ahsan H Mansur.

Speaking virtually from Dubai, the Governor confirmed that the IMF is set to release the next two tranches, amounting to $1.3 billion, by June 2025. He also indicated that the central bank may move towards a more flexible exchange rate regime, assuring that the market will remain stable due to an adequate supply of US dollars.

Addressing concerns over inflation, Dr Mansur emphasised that a relaxed exchange rate will not stoke price increases, as macroeconomic stability has already been restored.

In addition to the IMF loan, Bangladesh is expected to receive $3.5 billion in foreign loans from various international development partners 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 Governor also warned against manipulative practices by market syndicates, stating that Bangladesh Bank will maintain strict surveillance over the foreign exchange market. He highlighted that the central bank has sufficient foreign currency reserves to ensure overall market stability.

Rejecting claims of irregularities in the exchange rate, Dr Mansur clarified that all banks and authorised exchange houses are required to report their exchange rates to the central bank twice daily. He reaffirmed that Bangladesh Bank stands ready to intervene by selling US dollars if necessary to prevent any abnormal spikes in the exchange rate.