Responding to the IMF’s demands, Bangladesh’s central bank announced it would float the local currency to access more of its USD 4.7 bln loan program. Bangladesh, although not heavily indebted, joins countries like Pakistan, Egypt, and Lebanon in relinquishing control over their local currencies for IMF financing. According to the bank, the new market-driven exchange rate regime, promising improved transparency and efficiency, is not expected to significantly devalue the taka, which has declined around 5% this year. By Q3 2023, the central bank intends to unify the exchange rate regime, halt discounted FX sales, and base all transactions on the new structure, potentially bolstering exports and replenishing its FX reserves.