IMF will give $689 million, ADB $400 million and other sources $220 million

The International Monetary Fund (IMF) has advised Bangladesh to continue to focus on containing inflation and rebuilding external resilience.

The IMF staff mission is willing to set a lower target for foreign currency reserves for this December and June next year provided the Bangladesh Bank adopts the crawling peg method to manage the exchange rate.

The International Monetary Fund (IMF) yesterday suggested that banks in Bangladesh should quicken the implementation of market-driven exchange rates as it would help alleviate the ongoing foreign currency crisis.

Bangladesh has requested the visiting International Monetary Fund staff mission to revise down some of the targets as the existing numbers are not achievable in the present context.

With the approval of a $4.7 billion loan by the International Monetary Fund (IMF) for Bangladesh easing much of the concerns regarding its economy, IMF Mission Chief to Bangladesh Rahul Anand answers some questions about the arrangement.

There would not be any further negotiations on the $4.5 billion loan programme during International Monetary Fund’s deputy managing director Antoinette Monsio Sayeh’s forthcoming visit to Bangladesh.

The burden of imported inflation and supply-side implications of reduced imports will have adverse implications for economic growth and welfare, particularly of marginalised people.

The rate of reserve depletion is alarming, and the IMF loan will not be enough to fend off the haemorrhage.

IMF deal is further proof that economic reforms are badly needed

The government yesterday reached a preliminary agreement with the International Monetary Fund over a $4.5 billion loan programme, putting to bed all suspense on whether a deal would be struck with the multilateral lender at all.

The government and the IMF team have reached a staff-level agreement to support the authorities’ reform policies under a new 42-month ECF/EFF arrangement of about $3.2 billion, and a concurrent RSF arrangement of about $1.3 billion.