The Bangladesh Bank (BB) has successfully met the net international reserve (NIR) target set by the International Monetary Fund (IMF) as a condition for a $4.7 billion loan program. 

Under the IMF agreement, Bangladesh must maintain a minimum NIR of $15.3 billion by the end of December 2024. According to the central bank, the NIR reached $15.58 billion on Thursday, surpassing the target.

Officials attribute the achievement to an increasing inflow of US dollars bolstered by external financial support and remittance growth.

The Asian Development Bank (ADB) recently released $600 million in budget support, providing a critical boost to the reserves. By the end of the month, additional support is expected, including $500 million from the World Bank and $100 million from the OPEC Fund for International Development.

In just the first 17 days of December, remittances amounted to $1.7 billion, reflecting a robust inflow of foreign currency.

The central bank shifted its strategy, prioritizing purchasing dollars from the market while halting dollar sales from reserves. For instance, BB purchased $47.5 million from the market in November without selling any dollars. A similar trend continued in December, with $60 million purchased so far.

During a recent review meeting, the IMF had previously expressed skepticism about Bangladesh’s ability to meet the NIR target. However, the central bank’s spokesperson, Husne Ara Shikha, announced on Thursday that the target had been exceeded. “The NIR now stands at $15.58 billion, surpassing the IMF requirement,” she confirmed.