Bangladesh to receive $3 billion loan next month: Governor

Bangladesh is set to receive a $3.5 billion lifeline from international lenders in June, Bangladesh Bank Governor Ahsan H Mansur announced during a virtual media briefing on Wednesday.

The package includes $1.3 billion from the International Monetary Fund (IMF), with the remainder sourced from the Asian Development Bank, the World Bank, and Japan International Cooperation Agency (JICA). In a parallel move, the central bank unveiled a shift to a “market-based” exchange rate regime, replacing the previous partially flexible system.

Governor Mansur explained that the dollar’s value will now be driven by market forces, supported by robust export earnings and remittance inflows, which should stabilize the rate. “This aligns with our economic strategy,” he noted.

The IMF’s fourth review under Bangladesh’s loan program concluded successfully, unlocking $1.3 billion for the fourth and fifth tranches, the finance ministry confirmed in a press release.

This follows a staff-level agreement forged during April talks in Dhaka and Washington, focusing on revenue management and exchange rate reforms. Additionally, $2 billion in budget support is anticipated from development partners, with the government emphasizing that all reforms were domestically driven, aided only by technical expertise from lenders.

The influx, expected post-review formalities, signals a vote of confidence in Bangladesh’s economic reforms under Chief Adviser Muhammad Yunus’s interim leadership.

Asked earlier on Monday about her father's likely victory, she said plans would be made for him to be sworn in as mayor. "The ICC lawyer said once we get proclamation papers, we will discuss how he can take oath," she said.