Bangladesh edges closer to IMF loan tranche 

Bangladesh may receive $1.3 billion from the International Monetary Fund following assurances from the central bank to adopt a more flexible exchange rate regime, a senior official said.

The development marks a breakthrough in the months-long stalemate that had delayed the fourth tranche of a $4.7 billion loan programme agreed with the IMF in early 2023. The payment had been held up over Dhaka's failure to meet key reform targets, most notably on allowing the exchange rate to reflect market conditions more freely.

BB Governor Ahsan H Mansur is expected to address the issue in a virtual press briefing from Dubai on Wednesday, where he may share further details of the IMF decision.

While the central bank has yet to make an official statement, a senior central bank official confirmed that the IMF's green light suggests the funds will be released "within the shortest possible time".

So far, Bangladesh has received $2.3 billion in three instalments under the Extended Fund Facility, Extended Credit Facility, and Resilience and Sustainability Facility. The fourth tranche, originally slated for March, was delayed over concerns that the central bank had not moved decisively enough to unify the multiple exchange rates used across different transactions.

The IMF has long pressed Dhaka to abandon its tightly managed currency regime in favour of greater flexibility, a shift seen as crucial to easing pressure on dwindling foreign exchange reserves and restoring investor confidence.