ছবি: Bangladesh Bank and IMF Contemplate Reforms in Dollar Exchange Rate Management Source: Collected
The ongoing mid-term review meeting between Bangladesh Bank and the International Monetary Fund (IMF) in Dhaka is focusing on introducing more dynamic methods for managing the dollar exchange rate system.
Hosne Ara Shikha, the spokesperson and executive director of Bangladesh Bank, revealed that discussions held on Tuesday, December 10, centered on addressing recent stagnation in the foreign exchange market.
Despite relative stability in exchange rates, the rate of currency conversion has slowed. Shikha noted that many individuals are holding onto their dollars in anticipation of potential rate changes, further contributing to the sluggish movement in the market.
In response, policymakers are exploring strategies to ensure a more effective and adaptive foreign exchange market. Among the proposals under consideration is the introduction of a crawling peg system, which allows for gradual and pre-announced adjustments to currency values.
Shikha explained, “We are evaluating mechanisms to maintain a balance between stability and flexibility in the market. While the crawling peg system is being considered, no final decision has been made. A clearer picture will emerge after the discussions conclude.”
Experts view these discussions as critical for bolstering Bangladesh’s foreign currency reserves and ensuring economic stability amid global currency fluctuations.
The mid-term review is part of ongoing cooperation between the IMF and Bangladesh and includes an assessment of the progress of the current financial support program. Further details are expected once the meeting concludes.
Source: UNB
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