Staff Correspondent: The International Monetary Fund (IMF) has waived the second tranche of $689.8 million in favor of Bangladesh. The money was deposited into the central bank’s account in Washington on Friday. In this, the country’s foreign currency net reserve increased to $1,986 million and gross reserve increased to $2,532 million. This month itself, some organizations including the Asian Development Bank, South Korea may release another $620 million.
In this context, the Executive Director and Spokesperson of Bangladesh Bank Mejbahul Haque told that according to Bangladesh Bank, the second installment of the IMF loan has been deposited. The net reserve situation will be known next Sunday or Monday. Because every day money is spent from the reserve and added.
According to sources, the IMF approved a loan of $4.7 billion in favor of Bangladesh last January. Of this, $47.6 million were discounted at the beginning of last February. Both gross and net reserves increased as $690 million was written off for the second tranche on Friday.
Net reserves last Thursday were $1,917 million. Last Thursday, the IMF’s executive board approved a proposal to waive the second tranche of the loan. After adding IMF loan installments, it rose to $1,986 million. At the same time, gross reserves were $2,463 million. Now it has increased to $2,532 million.
Another $620 million in loans of some other companies may be waived this month. As a result, the reserve will increase a little more. By the end of December, net reserves will again cross the $20 billion mark. At that time, the reserves will increase to more than $2,500 million. At the same time, gross reserves will increase to around $26 billion.
Besides, export income and remittance money will also be added at the end of December. Meanwhile, the IMF has relaxed reserve holding conditions. By this December, the net reserve should be at least $1,778 million. In this context, central bank sources said that net reserves will be more than this in December. After averaging over $20 billion. Meanwhile, at the beginning of January, more than $1 billion will have to be paid for the debt of the Asian Clearing Union. Then the reserve will decrease.
No major debt payments before this. As a result, reserves are not decreasing before January. But now we have to increase the import on the occasion of next fasting. For this reason, the pressure on the reserves may increase again from February. Remittance flows may increase from January to April. Then the reserve will increase again. However, at the beginning of March, Aku’s debt must be paid again. Then the reserve will decrease.
Meanwhile, the major pressure on the reserves is the repayment of foreign debt. Import controls have been imposed. As a result, imports are decreasing. But external debt repayment pressure remains. However, fresh foreign borrowing has started to decline. Due to reduction in foreign debt, the flow of dollars in the market also decreased.
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