Bangladesh Meets IMF Condition on Dollar Reserves

Bangladesh has fulfilled the International Monetary Fund (IMF)'s condition on foreign exchange reserves, a key requirement for loan tranche releases.

The IMF stipulated that net reserves must reach at least $18.65 billion by September, and Bangladesh's current holdings stand at approximately $20 billion. Bangladesh Bank anticipates meeting the December-end target of $19.90 billion, with steady remittance inflows supporting growth.

Sources indicate that reserves plummeted in the final two years of the Awami League government due to multiple crises, dropping from $48 billion in 2021 to about one-third by 2024. This decline raised concerns over timely import payments and increased liabilities to international institutions.

Under new Governor Dr. Ahsan H. Mansur, efforts focused on recovery, settling nearly $4 billion in arrears and adding significant inflows. To stabilize rates amid excess supply, the central bank withdrew around $1.8 billion from the market over 1.5 months, bolstering reserves to $20 billion as of September 25—exceeding the IMF threshold.

Spokesperson Arif Hossain Khan stated, "Import pressure on banks is low now, with ample dollar supply, prompting them to approach the central bank for purchases."

With remittances holding steady, Bangladesh Bank expects further gains toward the December goal. The IMF's $4.7 billion bailout, secured in 2023, ties disbursements to reserve targets, fiscal reforms, and governance improvements; the next $476 million tranche is imminent.

Reserves, per IMF's BPM6 methodology, stood at $26.39 billion gross as of September 24, but net usable figures align with the met condition. This progress signals stabilizing forex amid post-uprising economic recovery.