Dhaka, May 6 (V7N): Talks between the Government of Bangladesh and the International Monetary Fund (IMF) over the release of the next tranches of a $4.7 billion loan program concluded without any resolution on Monday. The key sticking point remains Bangladesh’s reluctance to allow further flexibility in its exchange rate policy.
 
According to sources from the Ministry of Finance and Bangladesh Bank, Dhaka made it clear during the virtual meeting that it is not currently prepared to move toward a more market-driven exchange rate for the U.S. dollar—one of the core conditions demanded by the IMF.
 
Officials confirmed that another round of discussions is scheduled to take place today, Tuesday, May 6. If no progress is made, a follow-up meeting is planned for May 19, which could be decisive in determining the fate of the fourth and fifth disbursements under the loan agreement.
 
Last month, an IMF mission visited Dhaka to assess the country’s compliance with reform commitments under the extended credit facility. However, the mission departed without reaching any consensus. The deadlock later shifted to Washington, where informal side meetings were held during the IMF’s Spring Meetings. Still, no agreement was reached.
 
Monday’s virtual meeting included key members of the Bangladesh delegation: Dr. Ahsan H. Mansur (Governor), Finance Secretary Dr. Khairuzzaman Mozumder, Additional Secretary Dr. Ziaul Abedin, and Bangladesh Bank Deputy Governors Dr. Md. Habibur Rahman and Kabir Ahmed.
 
Sources say the IMF remains firm on its conditions, particularly regarding foreign exchange market reforms. Bangladesh, on the other hand, is taking a cautious stance amid concerns over inflation, reserves, and the broader impact of currency devaluation.
 
The final decision on the pending tranches is now expected to hinge on the outcome of the upcoming rounds of negotiations. As of now, the IMF has not issued any public statement on Monday’s meeting.
 
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