Bangladesh Bank (BB) would have to maintain the net foreign exchange reserves of US$24.46 billion by June this year to qualify for receiving US$4.7 billion of loan from the International Monetary Fund (IMF).
It was one of the conditions set by the IMF for receiving loans from the global lending agency.
However, on Wednesday, Bangladesh Bank at a meeting told the visiting IMF mission that it couldn’t fulfill the condition. It also explained to the IMF mission why Bangladesh couldn’t meet the condition.
The meeting was held at the Bangladesh Bank conference room. At the meeting, the officials concerned of the Bangladesh Bank informed the IMF mission about the reforms carried out according to the conditions of the loan. The central bank also explained to the IMF mission why it could not fulfill the other conditions.
In this regard, Bangladesh Bank’s executive director and spokesman Md Mesbahul Huque told journalists that the IMF imposed some conditions on the Bangladesh Bank during the approval of $4.7 billion loan. “Majority of the conditions have already been fulfilled. There are failures in one to two areas. Our reserves are low. Revenue earnings have gone down.
However, many things were implemented. Reports on the financial stability in banks were scheduled to be released and the Bangladesh Bank had done so. Foreign exchange reserves are now calculated as per BPM6 method. Besides, a dedicated exchange rate was introduced in the currency market. The new system of bank interest rate has been introduced. “We have briefed the IMF mission about the conditions which we have been able to fulfill, while the other conditions which we could not fulfill.