To increase the net foreign exchange reserves following the International Monetary Fund (IMF) conditions, the Bangladesh Government has reduced the outlay for EDF (Export Development Fund) by US $ 400 million in May.
This is as per reports, which added the size of EDF stood at US $ 4.6 billion with the latest adjustment, which until the first cut in December last, stood at US $ 7 billion even as the fund has been reduced by US $ 2.4 billion over the span of 6 months.
Meanwhile, speaking to the media, an official of Bangladesh Bank, the central bank of the country, reportedly maintained that keeping with the IMF terms, the net foreign currency reserve has to be US $ 24 billion by June, to do which, imports had to be brought down even as exports could not even be boosted on the expected lines.
“The adjustment was a must as now we have limited alternatives to increasing the reserves,” reportedly claimed the central bank official.
It may be mentioned here, the IMF, while granting US $ 4.7 billion loans at the end of January this year suggested by June Bangladesh increase its net reserves to over US $ 24 billion.
