The International Monetary Fund (IMF) has agreed to cut the reserve target to $14.769 billion, from $20.10 billion, for the fiscal year ending on June 30.
This target will be $14.885 billion at the end of September and $15.3 billion at the end of December this year. Besides, the global lender is set at $16.601 billion at the end of March 2025 and $19.440 billion at the end of June 2025, according to IMF documents.
Under the IMF BPM6 method, the net reserve position of Bangladesh is $15 billion, however the Bangladesh Bank showed $19.95 billion at the end of April.
Due to the low amount of net reserve, Bangladesh requested the IMF to reduce the target. As per the request the global lender agreed to cut the targets, said the Finance Ministry sources. The IMF has given a detailed plan on how Bangladesh will increase its reserves in the future.
Addressing a press conference at the Finance Ministry on Wednesday, the IMF delegation said there will be no problem in getting the next installment of the loan.
Meanwhile, the IMF has expressed its satisfaction with the introduction of the Bangladesh Bank crawling peg to set the exchange rate. The head of this delegation said the introduction of this new system will increase Bangladesh’s reserves and reduce inflation.
In response to a question, the IMF representatives termed mergers as a positive move. Besides, they also welcomed the lowering of the country's GDP growth target.
It is expected that the benefits will come in the upcoming budget for FY2024-25. It cannot yet be said that the government is failing the revenue collection target of the ongoing fiscal year 2023-24, they added.
There was a negative trend until February, but the main portion of the revenue was collected in the last two months of FY24, which means the government is working to meet the target, they pointed out.
