IFC working to find solutions on forex reserve shortfall

IFC (International Finance Corporation) County Manager for Bangladesh, Bhutan and Nepal Martin Holtman said efforts are underway to bring a solution regarding short forex reserves with Bangladesh Bank.

Currently the reserve is shorter than the IFC threshold of $24.46 billion. He said this while speaking as a guest speaker at a meeting titled "Role of IFC as a Development Partner in Bangladesh" organized by American Chamber of Commerce (AmCham) Bangladesh at a city hotel on Monday.

The Amcham Pesident Syed Ershad Ahmed opened the meeting. Among others former AmCham presidents, members and different professionals spoke in the event.

Holtman said Bangladesh is trying to follow IFC standards in getting the IFC promised loans. He said currently the foreign currency reserve with the central bank as per IFC guidelines is not there at $24.46 billion threshold. "The money is not there and we are working on solutions in this regard"

He said Bangladesh has officially announced to go for unified exchange rate.  In the long run there will be a good impact of this system. Holtman said Bangladesh is a most exciting market.

Syed Ershad Ahmed said, "We all acknowledge the tremendous Economic Development Bangladesh has made despite the difficulties since its inception where the private sector played a vital role beyond  doubt."

He said the significance of Bangladeshi private sector lies in its ability to drive economic growth, create employment opportunities, attract investment, and foster innovation.

This competitive advantage leads to increased foreign direct investment (FDI) by offering profitable business opportunities; and, in creating a favorable investment climate, putting the economy on a path to cross $ 1 trillion mark by 2040, according to the World Bank & BCG Analysis.

In today's globalized world, the IFC as a member of the World Bank Group, focuses on promoting sustainable economic growth and poverty reduction through investments in private sector which plays a crucial role in supporting development of countries on the path to progress.

Bangladesh is making its way to becoming a developing nation with an impressively steady annual GDP growth rate, unique geopolitical location, and solid and skilled workforce that's attracting global attention, labeling us as an FDI-friendly country.

The "poster boy" of our economy Ready Made Garments (RMG) sector and Foreign Remittance earnings shielded us despite all these unforeseen challenges in pre-COVID era, the AmCham president said.