Bangladesh faces IMF deadline for reserve strategy: Reports

The observation was made during a meeting between the visiting IMF mission and senior officials of the Bangladesh Bank, aiming to assess progress on various targets ahead of the disbursement of the third tranche of the $4.7 billion loan.

At the end of March, Bangladesh’s net reserves were approximately $4 billion below the IMF’s target of $19.26 billion even as according to Bangladesh Bank data, foreign exchange reserves stood at $19.97 billion on April 24, but excluding certain liabilities, the net reserve amounted to $14.07 billion.

The IMF has set a net reserve target of $20.10 billion for June 2024 and seeks a specific plan to augment reserves.

IMF officials highlighted concerns about past central bank policies affecting reserve retention and queried potential inconsistencies in loan default data disclosure. The IMF also sought clarification on banks’ handling of funds stuck in cases, rescheduling, and write-offs.

Meanwhile, Bangladesh Bank spokesperson Mezbaul Haque reportedly confirmed that during the meeting, data on reserves, revenue, and macroeconomic indicators were presented, aligning with IMF targets.

Fibre2Fashion News Desk (DR)