Dhaka, May 14 (V7N) – After intense negotiations with the International Monetary Fund (IMF), the Bangladesh Bank has officially allowed the US dollar exchange rate to be determined by the market, ending its long-standing practice of a managed exchange rate system.

The decision came following persistent pressure from the IMF, which had made market-based exchange rate reform a key condition for the disbursement of further installments under its $4.7 billion loan program.

Speaking at a press conference on Wednesday, Bangladesh Bank Governor Ahsan H. Mansur confirmed the move and assured the public there is "nothing to worry about" regarding the dollar situation. He added that, along with the $1.3 billion in two IMF tranches expected by June, the country would also receive an additional $3.5 billion in new loans from donor organizations such as the World Bank, ADB, and JICA.

“The IMF had been firm that no further funding would be provided unless the exchange rate was left to market forces. Ultimately, Bangladesh complied with that demand,” the governor said during an online press briefing from Dubai.

He further noted that remittance inflows have surged by 60 percent, and not a single dollar has been sold from reserves in the past nine months. “We will not buy dollars at unreasonable rates either,” Mansur emphasized.

With this move, Bangladesh aims to restore economic stability and maintain foreign exchange reserves while meeting the reform benchmarks agreed with international lenders.

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