She highlighted the importance of dialogue and engagement in allowing the exchange rate to adjust flexibly to facilitate reserve accumulation, marking it as a key priority for the nation’s future.
Her remarks came in response to inquiries regarding the decline in foreign exchange reserves, which recently dipped below $20 billion.
To receive the third instalment of $4.7 billion in IMF loan support, Bangladesh must meet the foreign exchange reserve target even as the IMF had set a target of $19.26 billion for March 2024, but actual reserves fell short at less than $16 billion.
The first tranche of the loan, approved on 30 January, disbursed $447.8 million on 2 February, with subsequent instalments scheduled until 2026. The fourth instalment, due in December 2024, necessitates raising net reserves to $20.20 billion by the following June.
This underscores the urgency for Bangladesh to address the reserve shortfall and adopt measures to bolster its exchange rate regime in alignment with the IMF recommendations.
ALCHEMPro News Desk (DR)
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