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IMF stresses meeting forex reserves target

UNB . Dhaka
03 Apr 2024 21:37:57 | Update: 03 Apr 2024 21:37:57
IMF stresses meeting forex reserves target

The International Monetary Fund (IMF) has emphasised meeting the target of the foreign exchange reserve set for March 2024 as a condition of $4.7 billion in loan support for Bangladesh.

The global lender upheld its stand during a meeting with Bangladesh Bank (BB) officials on Wednesday. The IMF team is visiting Bangladesh to assess the financial outlook before releasing the third instalment of the $4.7 billion loan.

As per the conditions of the IMF loan, it was set as a target to hold $19.26 billion in reserves in March 2024. But actual reserves are less than $16 billion.

“There is difficulty and uncertainty about the third instalment of the IMF loan as the IMF has been somewhat strict in meeting the conditions,” said an official of the central bank.

He told UNB that the BB officials have given several points for causing the reserve shortage. He hoped that IMF would finally be convinced of Bangladesh's position in this regard.

The government signed a $4.7 billion loan deal with IMF to solve the dollar crisis. A review mission of the IMF is visiting Bangladesh before the loan’s third instalment is disbursed.

Ahsan H Mansur, executive director of the Policy Research Institute of Bangladesh (PRI), told UNB that despite the IMF easing the net reserve requirements, it is difficult for Bangladesh to meet the March target.

He said the global lender may set a new standard of net reserves for Bangladesh or delay the disbursement of the third tranche of the $4.7 billion loan.