Market to fix the dollar price: BB governor

Bangladesh Bank governor Ahsan H Mansur has announced that the exchange rate of the US dollar will now be determined by the market.

Speaking at a press conference joining virtually from Dubai on Wednesday, the governor said, “I hope the price will remain close to the current rate.”

The move comes in line with conditions set by the International Monetary Fund (IMF), which had long been urging Bangladesh to adopt a more flexible, market-based exchange rate policy.

The global lender held up the disbursal of installments of its USD 4.7 billion loan package due to delay in fulfilling the condition.

It was learned on Monday that Bangladesh agreed to make the dollar rate more flexible, and the IMF agreed to release the pending two installments.

In the press conference, the central bank governor said it is the right time to make the dollar exchange rate market-based.

“Inward remittances are good, reserves are stable, and the balance of payments has improved. By June, an additional USD 3.5 billion is expected to arrive, and it will boost up the reserves further. So, this is a good time to let the market set the rate.”