Bangladesh is set to receive $3 billion in loan support from international development partners, including $1.3 billion from the International Monetary Fund (IMF), by June, the finance ministry said on Wednesday.

The funds, intended as budget support, are expected to bolster the country’s foreign currency reserves and help stabilise the exchange rate.

“The IMF’s fourth review has been successfully completed,” the ministry said. “It was agreed that the fourth and fifth tranches would be disbursed together, pending additional reviews of reforms in revenue management and exchange rate policy.”

A staff-level agreement is now in place following discussions during the IMF’s review mission in Dhaka in April and at the Spring Meetings in Washington later that month.

In addition to IMF funds, Bangladesh anticipates receiving nearly $2 billion in assistance from other development partners, including the World Bank, ADB, AIIB, Japan, and the OPEC Fund.

The support comes as the country moves toward a market-based exchange rate regime, announced on Wednesday by Bangladesh Bank Governor Ahsan H Mansur. This shift aligns with IMF recommendations, which also call for reforms to the National Board of Revenue (NBR).

As of April, Bangladesh’s gross forex reserves stood at $27.42 billion, with reserves measured under the IMF’s BPM6 standard at $22.04 billion.

While some officials had earlier downplayed the urgency of further IMF disbursements, the finance ministry stressed that all loan-related reforms were being pursued in consideration of the country’s socio-economic context.