STAR BUSINESS REPORT

Bangladesh’s foreign exchange reserves are projected to rise modestly to $23.6 billion in the next fiscal year from $21.7 billion in the current year, as the International Monetary Fund (IMF) expanded its total support package amid ongoing efforts to stabilise the country’s macroeconomy.

The reserve uptick comes after the IMF Executive Board approved the completion of the third and fourth reviews of Bangladesh’s reform programme. The decision unlocked immediate access to a combined amount of $1.34 billion.

Gross reserves stood at $27.30 billion as of June 24, while reserves measured under the IMF’s BPM6 manual were $22.24 billion, according to data published by Bangladesh Bank. The latest numbers underscore the limited room available to manage external shocks.

With foreign reserves still fragile, a narrow fiscal margin, and banking risks rising, the IMF’s backing provides both funding and credibility. But, as the IMF made clear, the next phase of Bangladesh’s recovery will depend on consistent execution across all fronts -- from exchange rate management and tax reform to governance and green investment.

“Bangladesh’s economy continues to navigate multiple macroeconomic challenges,” said Nigel Clarke, IMF deputy managing director and acting chair. “Despite a difficult environment, programme performance has remained broadly on track, and the authorities are committed to implementing necessary policy actions and reforms.”

The original IMF loan package for Bangladesh, approved in 2023, totalled $4.7 billion. Following the augmentation approved on Monday, the total size of the programme has increased by $800 million to $5.5 billion. Of this, $3.31 billion has been disbursed so far.

The IMF cited “broadly satisfactory”