The International Monetary Fund (IMF) has expressed appreciation for the recent improvement in Bangladesh’s foreign currency reserves, noting the development as an encouraging sign for the economy.
Thomas Helbling, deputy director of the IMF’s Asia and Pacific Department, said on Friday that boosting reserves remains a core target under the ongoing IMF-supported reform programme, particularly as Bangladesh continues to navigate balance of payments pressures in global trade.
Speaking at a media briefing in Hong Kong on the economic outlook for the Asia-Pacific region, he said a healthier reserve buffer plays a crucial role in lowering the country’s exposure to external financing risks and ensuring greater macroeconomic stability.
Helbling applauded the Bangladesh Bank’s efforts in increasing its reserve holdings over recent months.
He also noted that an IMF review team will travel to Dhaka later this month to conduct the fifth assessment of Bangladesh’s performance against the benchmarks tied to the $5.5 billion loan package currently under implementation.
The mission will engage in detailed consultations with local authorities before presenting its findings, he added, stressing that the conclusions will depend on discussions on the ground.
Despite the progress, the IMF will examine whether the central bank’s foreign exchange market operations are being carried out in line with its stated exchange rate framework.
Bangladesh’s forex reserves, calculated using the IMF’s balance-of-payments manual, reached $27.35 billion on October 16, compared to $19.93 billion a year earlier, supported by stronger inflows and the central bank’s dollar purchases from the market.
