Bangladesh is currently $7 billion short of the $25.3 billion net reserve target set by the International Monetary Fund (IMF) for September 2023. Meeting this criteria is essential to access the second tranche of a $4.7 billion loan package. While the country’s net reserves were just below $18 billion at the end of September, they still cover over three months of imports, surpassing international standards.
The IMF may reconsider the conditions for maintaining reserves, given the gap. Bangladesh Bank officials hope to convince the IMF that the initial reserve target set in February was ambitious in light of the current economic challenges. It remains uncertain whether the second loan installment will be released on schedule, similar to the delay experienced by crisis-hit Sri Lanka. Bangladesh Bank representatives are attending the annual meetings of the World Bank Group and IMF to discuss the situation.
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