The International Monetary Fund (IMF) has offered an additional $1 billion to Bangladesh but the government is pushing for at least $2 billion to implement the interim government’s reform agenda, narrow the deficit in the current account and shore up the dollar stockpile.
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.
Bangladesh Bank introduced a new formula in June to determine the lending interest rate and brought about a single exchange rate recently but both are yet to be determined by the open market, the International Monetary Fund (IMF) has said.
It seems there exists a nexus among the policymakers, bank directors, and defaulters which facilitates the process of swindling depositors’ money.
The government is on track to meeting the International Monetary Fund’s tax collection target for March but may miss the mark in June.
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IMF loan cannot be the only factor behind much-needed structural changes
The International Monetary Fund is set to tag three binding conditions and a host of structural reforms for the prospective $4.5 billion loan to Bangladesh, as the Washington-based multilateral lender looks to bring in lasting reforms in the country.
