The central bank’s move is aimed at implementing a unified and market-driven exchange rate regime, putting an end to multiple exchange rate mechanisms to alleviate pressure on the country’s forex reserves and fulfilling one of the IMF’s conditions to qualify for a $4.7 billion loan package approved in January.
However, the interbank rate is still managed as the Bangladesh Foreign Exchange Dealers Association (Bafeda) set the rate as per verbal instructions from the central bank.