IMF team to visit Bangladesh this week to discuss USD 4.5b loan request

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Reserve is there for a rainy day.

No it is not.

The only income GoB has is what it collects via tax. It can use the USD reserves by withdrawing equivalent amount of taka from circulation.

So when you read in the news that BB is releasing USD into the market, that is what they are doing. They are releasing USD and at the same time is reducing the circulation of taka. A ledger has two sides.

Anything else, its the same as printing money leading to inflation. To be even more blunt GoB can only go so far as release USD up to the value of tax receipts only....however for a short term it can get away with releasing more in the expectation of GDP and corresponding tax growth.

I will keep reiterating BD can not use the reserves as it pleases without comprising on fiscal discipline. BDs low tax to GDP ratio is the reason why BD had to move so quickly for support. The loan is more than likely will be required to service existing debt unless tax revenue rises.