Dhaka, May 14 -- Bangladesh will allow the market to determine the dollar exchange rate, the central bank said on Wednesday.

"I hope the new rate will remain around the current level," Bangladesh Bank Governor Ahsan H Mansur told reporters via video link from Dubai during a press briefing organised by the central bank.

The move follows months of negotiations with the IMF, which had pushed for a market-based exchange rate as a condition for disbursing loan instalments under a $4.7 billion support programme agreed last year.

The IMF had held back loan tranches over concerns about exchange rate controls.

On Tuesday, Bangladeshi authorities agreed to liberalise the system, prompting the global lender to approve the release of two pending ...