Dhaka: Finance Adviser Dr Salehuddin Ahmed announced that the International Monetary Fund (IMF) has recognized the macroeconomic stability of Bangladesh, particularly highlighting the stable state of foreign currency reserves and exchange rate compared to last December.
According to Bangladesh Sangbad Sangstha, Dr Salehuddin made these remarks while addressing questions after chairing meetings on the Advisers Council Committee on Economic Affairs and the Advisers Council Committee on Government Purchase at the Bangladesh Secretariat. He shared insights from his recent visit to the USA, where he attended the Annual Meetings of the World Bank and the IMF.
Dr Salehuddin emphasized that Bangladesh has achieved macroeconomic stability without additional IMF funding, citing the stable foreign currency reserves and exchange rate as evidence. He stated that the IMF acknowledged this improvement and mentioned ongoing discussions about future agreements.
Regarding project-related support, Dr Salehuddin revealed that
assistance from institutions like the Asian Development Bank (ADB), the World Bank, the New Development Bank (NDB), and the Islamic Development Bank (IsDB) is in progress. He expressed confidence that there would be no issues with project support.
Dr Salehuddin also addressed the IMF’s suggestion to make the foreign exchange market more flexible, noting the need for careful consideration. He warned that fully opening the market could lead to currency depreciation, similar to situations in Sri Lanka and Pakistan. He reassured that the current market stability would continue.
In meetings with multinational companies in the USA, Dr Salehuddin observed positive perceptions about Bangladesh’s economic stability from companies like Chevron and Mastercard. He noted that these companies are looking to engage with the country’s economy.
Dr Salehuddin advised caution regarding budget support, emphasizing the need for careful decision-making when considering loans. He highlighted that it is the government’s decision
whether to accept loans, not the financing institutions.
He mentioned that the IMF evaluates economic stability and due diligence before providing support. When asked about the potential receipt of loan tranches from the IMF’s $4.7 billion package by June, he suggested waiting for further developments from the IMF.
Agreements worth $1 billion have been signed with development partners such as the World Bank and the OPEC Fund, with more agreements expected in the future.