The International Monetary Fund (IMF) has applauded the Bangladesh Bank (BB) for its successful effort in increasing its foreign exchange reserves.
Thomas Helbling, deputy director of the IMF's Asia and Pacific Department, stated that the accumulation of reserves is a "central objective" of the IMF-supported program, particularly as Bangladesh continues to grapple with balance of payments pressures.
Speaking at a press briefing in Hong Kong, Helbling underscored that boosting reserves is key to mitigating these vulnerabilities. Bangladesh's foreign exchange reserves reached $27.35 billion (as per the IMF's calculation method) on October 16, a significant jump from $19.93 billion a year prior. This increase is attributed to greater foreign inflows than outflows, alongside purchases by the central bank from the market.
An IMF mission is scheduled to visit Bangladesh this month for the fifth review of the conditions tied to the $5.5 billion loan. Helbling noted that the mission will discuss the outcomes with authorities. However, the IMF will also evaluate whether the central bank's intervention methods are consistent with its declared exchange rate regime.
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