Dhaka, July 1 -- The International Monetary Fund (IMF) has said that Bangladesh requires more time to fully transition to a flexible exchange rate system, as the country continues to implement critical economic reforms under its $5.5 billion loan programme.

Speaking at a virtual press briefing on Monday, IMF Mission Chief for Bangladesh Chris Papageorgiou stated that the country is currently operating under a transitional exchange rate regime - specifically a crawling peg with a band - which allows for limited flexibility.

The framework, introduced by Bangladesh Bank in May, is intended to gradually prepare both the economy and the financial system for a fully market-determined exchange rate.

"This transitional arrangement is a step in...