Bangladesh to secure $1.3 billion from IMF in June after new exchange rate deal
Bangladesh Bank Governor Ahsan H Mansur announced a managed floating exchange rate with immediate effect to meet the IMF conditions, helping secure the loan confirmation.
Also Read: India backs early elections in Bangladesh, expresses concern at ban on Awami League
"Bangladesh will receive a total USD 3.5 billion by June from different multi-donor agencies, including the WB (World Bank), ADB (Asian Development Bank) and IMF," he said in a virtual press conference from Dubai.
The central bank governor expected the "managed exchange rate" to be around the existing rate due to available dollar liquidity.
The central bank officials said IMF agreed to release its stalled fourth and fifth tranches of the loan by June as the disagreement over exchange rate flexibility was resolved after months of negotiations.
Also Read: Bangladesh interim govt bans former PM Sheikh Hasina's Awami League
They said the announcement meant adoption of a "market-based" exchange rate regime, abandoning the partially flexible system that had been in place until now.
Under the new system, there will be a band through which the exchange rate will move. However, the Bangladesh Bank did not elaborate on the system but said a stabilisation fund of USD 500 million was developed to be used in stabilising the exchange rate.
The central bank chief said banks were already informed about market-based exchange rates but added that Bangladesh Bank will intervene in case of large foreign payments to keep the rate stable.
Also Read: Man held near north Bengal military station admits being Bangladeshi spy: Cops
The announcement came a day after the Bangladesh Bank finally reached an agreement with the IMF over the implementation of greater exchange rate flexibility after a series of meetings.
The IMF agreed to release USD 1.3 billion of the USD 4.7 billion loan package in June, which was so far withheld due to disagreement over the implementation of greater exchange rate flexibility through a crawling peg.
According to media reports, 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 was reluctant to agree to the IMF's proposal citing risks of inflationary shocks and political pushback.
In 2023, the IMF had approved a USD 4.7-billion loan for Bangladesh and so far, the South Asian country has received three installments totaling USD 2.3 billion.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
33 minutes ago
- Economic Times
Trump unwilling to criticize China even after being largest Russian oil buyers, targets India unfairly: GTRI report
Synopsis A recent report by the Global Trade Research Initiative (GTRI) indicates that US President Donald Trump is unfairly targeting India over Russian oil imports while overlooking China, the largest buyer. The report refutes Trump's claim that India is reselling Russian oil for profit, clarifying that India exports refined petroleum products, not crude oil. ANI Trump unwilling to criticize China even after being largest Russian oil buyers, targets India unfairly: GTRI report US President Donald Trump has been unfairly targeting India over Russian oil imports, while choosing not to criticize China, according to a recent report by the Global Trade Research Initiative (GTRI).The report suggested that this selective approach may be driven by geopolitical per the data from the report, China is the largest buyer of Russian oil. In 2024, China imported USD 62.6 billion worth of Russian oil, compared to India's USD 52.7 billion. Despite this, Trump has focused his criticism on India, ignoring China's bigger stated, "Trump appears unwilling to criticize China, perhaps because of geopolitical calculations, and instead targets India unfairly".The report also rejects Trump's recent claim posted on Truth Social, where he alleged that India is "buying massive amounts of Russian oil and selling it on the open market for big profits." GTRI clarified that this statement is factually incorrect and misleading. The think tank explained that India does not export crude oil, Russian or is a net importer of crude oil, and its total crude oil exports stand at zero. What India does export are refined petroleum products, including diesel and jet fuel, some of which are processed from Russian crude. This is standard practice among energy-importing countries, the report further stated that India's oil refineries, both public and private, operate independently in deciding where to source crude oil companies do not need government permission to buy oil from Russia or any other country. Their decisions are based on commercial considerations, including price, supply reliability, and rules in export report noted that if Indian refiners find that importing Russian crude involves risks, such as secondary sanctions or restricted access to global markets, they may reduce or stop such imports example, India exported diesel and aviation turbine fuel (ATF) to the European Union in FY2025, but these exports will now stop due to the EU's ban on products refined from Russian crude. In such cases, refiners will shift away from Russian oil without needing a government trend is already visible. In May 2025, India's imports from Russia declined by 9.8 per cent, amounting to USD 9.2 billion, compared to imports in May GTRI report concluded that India is being unfairly targeted, while China's larger role goes unquestioned, possibly due to broader geopolitical interests.
New Indian Express
an hour ago
- New Indian Express
Some foreign visitors will have to pay bond of up to $15,000 to enter US under new programme
NEW YORK: The Trump administration is implementing a pilot programme under which foreign visitors arriving in the US on tourist or business visas could be required to pay a 'bond' of up to USD 15,000 to ensure they don't overstay their visas. The countries that would come under the purview of the programme have not been announced yet. The US State Department has issued a 'temporary final rule' under which a 12-month long visa bond pilot programme will be started. The State Department said that under this pilot programme, foreign individuals applying for the B-1/B-2 visas to come into the US for business or tourism could be required to post a bond of up to USD 15,000. The Department said that the rule is described as a " key pillar of the Trump administration's foreign policy to protect the United States from the clear national security threat posed by visa overstays and deficient screening and vetting". "Individuals applying for visas as temporary visitors for business or pleasure (B-1/B-2) and who are nationals of countries identified by the Department as having high visa overstay rates, where screening and vetting information is deemed deficient, or offering Citizenship by Investment, if the alien obtained citizenship with no residency requirement, may be subject to the pilot programme," the department said in a public notice. It said consular officers may require covered nonimmigrant visa "applicants to post a bond of up to USD 15,000 as a condition of visa issuance, as determined by the consular officers". The pilot programme, expected to start this month, will be effective till August 5, 2026. The pilot programme appears to be part of the Trump administration's crackdown on illegal immigration, a key agenda of the US president's electoral run and his second term in the White House. The public notice states that over the years, it has been found that hundreds of thousands of nonimmigrant visitors do not depart the US timely and overstay their visas. While the public notice does not mention which countries will come under the purview of the programme, it said that the State Department will announce the covered countries within at least 15 days before the pilot programme takes effect and this list will be amended as required. "In announcing the covered countries, the Department will also provide a brief explanation of the basis for requiring bonds consistent with this rule," it said. "The pilot programme is further designed to serve as a diplomatic tool to encourage foreign governments to take all appropriate actions to ensure robust screening and vetting for all citizens in matters of identity verification and public safety and to encourage specified countries with visa overstays to ensure their nationals timely depart the United States after making temporary visits." "The public notice said that by its design and intention, the pilot programme is a tool of diplomacy, intended to encourage foreign governments to take immediate action to reduce the overstay rates of their nationals when travelling to the United States for temporary visits". The notice also cites estimates by the Department of Homeland Security, which said that in the DHS FY 2023 Overstay Report, data indicated there were over 500,000 suspected in-country overstays, - individuals who remained in the country past the end of their authorised stay and had yet to depart the country - among nonimmigrants admitted through air or sea ports of entry. Through the programme, the Department seeks to send a message to all countries to take immediate action to encourage their nationals to comply with US immigration law, it said.
Time of India
an hour ago
- Time of India
Trump tariffs: India under fire from US over Russian oil imports; China buys more but escapes criticism, says GTRI
AI-generated image As the tension between US and India escalate with regards to trade talks, a recent Global Trade Research Initiative (GTRI) report called out Donald Trump claiming the US President has been selectively criticising India regarding Russian oil imports while remaining silent about China's involvement. The report, cited by ANI, presented data showing China as the primary purchaser of Russian oil, with imports valued at $62.6 billion in 2024, exceeding India's USD 52.7 billion. Yet, Trump's criticism remains focused on India, overlooking China's more substantial involvement. "Trump appears unwilling to criticize China, perhaps because of geopolitical calculations, and instead targets India unfairly," GTRI said. The report contests Trump's recent Truth Social post claiming that India is "buying massive amounts of Russian oil and selling it on the open market for big profits", identifying this statement as inaccurate. The organisation clarifies that India does not export crude oil of any origin. As a net crude oil importer, India exports only refined petroleum products, including diesel and jet fuel, some derived from Russian crude, which is standard practice for energy-importing nations. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Prince William & Kate Met Princess Diana's Secret Daughter. Plays Star Undo GTRI further emphasised that Indian oil refineries maintain operational autonomy in sourcing crude oil. These entities operate without requiring governmental approval for oil purchases from Russia or other nations, basing decisions on business factors including pricing, reliable supply, and export destination regulations. The report indicates that Indian refiners might independently reduce or cease Russian imports if faced with secondary sanctions or limited market access. This shift is evident in the statistics, according to ANI citing the GTRI report, with India's Russian imports decreasing by 9.8 per cent to $9.2 billion in May 2025 compared to May 2024. The GTRI report determines that India faces unjust scrutiny while China's larger involvement remains unaddressed, potentially due to wider geopolitical considerations. MEA calls out US, EU over oil trade with Russia; pans double standards The GTRI report is aligned with MEA's response on Monday over India being targeted. India pushed back against Trump's threat to significantly increase tariffs on Indian goods, attributed to the country's ongoing oil imports from Russia, describing the move as 'unjustified and unreasonable.' In a sharply worded statement, the Ministry of External Affairs (MEA) defended India's energy strategy, stating that its purchases of crude oil from Russia are 'a necessity compelled by global market conditions' and not a political endorsement of Moscow. 'India will take all necessary measures to safeguard its national interests and economic security,' the MEA said, while highlighting that the US and European Union have themselves continued trade with Russia, including in energy and critical commodities, despite publicly opposing the Ukraine conflict. Read more: India calls out US, EU over oil trade with Russia; pans double standards Stay informed with the latest business news, updates on bank holidays and public holidays . Discover stories of India's leading eco-innovators at Ecopreneur Honours 2025
