The decision follows a series of meetings held in Washington between Bangladesh Bank Governor Dr Ahsan H Mansur and senior IMF officials, according to the central bank spokesperson.

The funds had previously been withheld due to unresolved issues concerning the implementation of a more flexible exchange rate regime, particularly the adoption of a crawling peg mechanism, and concerns over the country’s tax-to-GDP ratio.

An IMF staff mission, led by Chris Papageorgiou, visited Dhaka from 6–17 April to carry out a combined third and fourth review of Bangladesh’s economic reform progress under the Extended Fund Facility (EFF), Extended Credit Facility (ECF) and the Resilience and Sustainability Facility (RSF).