Dhaka: Bangladesh will receive a total of $3.5 billion in loans by June from different multi-donor agencies, including the World Bank, Asian Development Bank and the International Monetary Fund (IMF), the Bangladesh Bank governor said today (14 May).

At a press conference in the central bank headquarters, he also announced a market-based exchange rate from today to meet conditions of the IMF.

Of the total loan, the IMF will release $1.3 billion.

On the market-exchange rate, the governor expressed hope that it would be around the existing rate due to available dollar liquidity.

Banks were already informed about market-based exchange rates at today's meeting, said the governor.

He also said the central bank will intervene in case of large foreign payments to keep the rate stable.

Earlier on 13 May, the Bangladesh Bank finally reached an agreement with the IMF (International Monetary Fund) over the implementation of greater exchange rate flexibility after a series of meetings conducted by the governor.

Now, the IMF agreed to release $1.3 billion of the $4.7 billion loan package in June, which was previously withheld due to disagreement over the implementation of greater exchange rate flexibility through a crawling peg.

the IMF remained insistent on implementing a truly flexible exchange rate – one that goes beyond minor corridor adjustments and eliminates multiple exchange rate windows. The central bank, however, remains cautious, citing risks of inflationary shocks and political pushback.

The IMF approved a $4.7 billion loan for Bangladesh in 2023. So far, the country has received three instalments totalling $2.3 billion.