Bangladesh Bank (BB) agreed with the condition of the International Monetary Fund (IMF) to switch to a market-based exchange regime to get loan confirmation. Bangladesh Bank Governor Ahsan H Mansur said on Wednesday that the central bank will allow the exchange rate of the dollar to be determined by market forces, moving away from the current system.
Speaking at a virtual briefing, Dr Mansur said that the IMF agreed to release $1.3 billion of the $4.7 billion loan package in June 2025 which was previously withheld due to disagreement over the implementation of greater exchange rate flexibility through a crawling peg. Banks have already been informed about market-based exchange rates at Wednesday’s meeting, he added.
Dr Mansur said the central bank expects the rate to remain stable due to strong inflows from exports and remittances.
The Governor said it does not mean the dollar can be sold at any price. He said that they expected the rate to hover around the current level.
He also said the central bank will intervene in case of large foreign payments to keep the rate stable.
The IMF approved a $4.7 billion loan for Bangladesh in 2023. So far, the country has received three instalments totalling $2.3 billion.
