FX.co ★ IMF to Release USD 1.3 Billion to Bangladesh After Reform Breakthrough

The International Monetary Fund (IMF) is set to disburse USD 1.3 billion to Bangladesh in June, following the conclusion of the fourth review of its USD 4.7 billion loan arrangement, as announced by Bangladesh's finance ministry. This disbursement represents the fourth and fifth installments, which were postponed due to the IMF's stipulations for enhanced exchange rate flexibility, specifically advocating for a crawling peg system. The impasse was resolved after discussions held in April in Dhaka, followed by continued dialogue during the Bank-Fund Spring Meetings in Washington. These talks centered around pivotal reforms in revenue management, fiscal policy, and the foreign exchange framework. Bangladesh initially sought IMF assistance in 2023 as escalating global commodity prices, compounded by the conflict in Ukraine, placed pressure on its foreign reserves and import capabilities. To date, the nation has received USD 2.3 billion from the first three disbursements.