B Mirror Desk : Ahsan H Mansur, the Governor of Bangladesh Bank, has declared the implementation of a market-driven exchange rate effective today, fulfilling the International Monetary Fund’s (IMF) requirements for loan approval.

During a press conference at the central bank’s headquarters, he stated, ‘Bangladesh is set to receive a total of $3.5 billion by June from various multi-donor organizations, including the World Bank, Asian Development Bank, and IMF.’ The governor expressed optimism that the exchange rate would remain close to the current level due to sufficient dollar liquidity. He mentioned that banks were informed about the market-based exchange rates during today’s meeting. Additionally, he noted that the central bank would step in to stabilize the rate in the event of significant foreign payments, although the specific exchange rate band would not be disclosed.

The IMF has agreed to disburse $1.3 billion in June for Bangladesh, following the resolution of disagreements regarding exchange rate flexibility. On May 13, the Bangladesh Bank reached an agreement with the IMF on enhancing exchange rate flexibility after several discussions led by the governor. The IMF’s approval of a $4.7 billion loan for Bangladesh in 2023 has already seen the country receive three installments totaling $2.3 billion.