United News of Bangladesh

Bangladesh Bank Deputy Governor Habibur Rahman on Tuesday said innovative financial instruments like Orange Bonds can play a transformative role in advancing climate resilience, women's empowerment and inclusive growth. “The Orange Bond is a historic milestone for our capital market,” he said, highlighting the country's first Orange Zero Coupon Bond issued through Sajida Foundation. The deputy governor was speaking as chief guest at the 'Orange Economy Summit 2026: Dhaka', jointly organised by Dhaka Stock Exchange (DSE), Impact Investment Exchange (IIX) and Policy Research Institute of Bangladesh (PRI) at the DSE premises He reaffirmed Bangladesh Bank's full backing to attract $100 million in Orange investment by 2030, underscoring the importance of positioning Bangladesh as an attractive investment destination through inclusive and sustainable financing. The summit centred on the potential of a $100 million investment under IIX's Orange Climate Fund for Bangladesh, development of the country's Orange Capital ecosystem, and the role of capital markets in achieving long-term, inclusive and sustainable economic growth. In her welcome address, DSE Managing Director Nuzhat Anwar expressed satisfaction at hosting the summit, saying economic growth must go hand in hand with social inclusion and climate resilience to ensure sustainable development. She noted DSE's commitment to sustainable finance, corporate governance and implementation of international standards, adding that such initiatives would help raise awareness of Orange economy instruments and strengthen the regulatory framework for capital market development. IIX Founder and CEO Professor Durreen Shahnaz said building a robust and inclusive financial market is indispensable for Bangladesh's long-term sustainable growth amid its LDC graduation. She identified vast investment potential in the readymade garments, agriculture, energy transition and financial services sectors, saying deepening the capital market is essential to unlock that potential. Describing the 'Orange Movement' as a global initiative to build inclusive capital markets, Shahnaz said IIX is working to mobilise $10 billion by 2030. She disclosed that IIX has invested over $18 million in Bangladesh over the past decade and announced that $100 million has been earmarked for Bangladesh under IIX's $1 billion Orange Climate Fund. PRI Chief Economist Ashikur Rahman presented the keynote paper titled 'Building an Orange Capital Ecosystem in Bangladesh', noting that the country must overcome challenges including job creation, climate risk management and increased investment in productive sectors to achieve LDC graduation and a trillion-dollar economy. Ashik said the groundwork has already been laid through Green Bonds, Social Bonds and the country's first Orange Bond, and what is now needed is policy support, market-driven innovation and attraction of international capital to build a strong Orange Capital market. The summit concluded with a session on 'Experience Sharing from Emerging Markets', moderated by IIX Senior Director (Research and Government Relations) Priyank Tiwari. IIX Indonesia's Antya Widita and IIX Director of Impact Partners (Investment Banking) Jonathan Abeywickrema shared experiences on inclusive financing, sustainable investment and the role of Orange Capital in capital market development across emerging economies, while also exploring how international best practices can be applied in the Bangladesh context.

Most Asian stock markets traded higher on Tuesday, with Japan’s benchmark Nikkei 225 briefly crossing the 70,000 mark for the first time before giving up some of its early gains following a rate hike by the Bank of Japan (BOJ). The BOJ raised its key interest rate by 0.25 percentage points to 1%, taking the benchmark rate to its highest level in nearly 30 years. By early afternoon, Japan’s Nikkei 225 was up 0.6% at 69,713.05. South Korea’s Kospi continued its record-setting run, gaining 2.1% to 8,721.64. China’s Shanghai Composite edged up less than 0.1% to 4,100.53. However, Australia’s S&P/ASX 200 fell 0.3% to 8,892.10, while Hong Kong’s Hang Seng dropped 1.3% to 24,533.35. Taiwan’s Taiex rose 0.6%, and India’s Sensex added 0.5%. Global markets rallied on Monday after the United States and Iran reached a preliminary agreement aimed at restoring the smooth flow of oil supplies. The development helped ease concerns over disruptions in global energy markets. On Wall Street, the S&P 500 climbed 1.7%, while the Dow Jones Industrial Average gained 0.9% to reach a record high. The technology-heavy Nasdaq surged 3.1%. Oil prices also declined after the announcement, as investors hoped the deal could lead to the reopening of the Strait of Hormuz, a key route for global oil shipments and a major source of energy supplies for Asia. Brent crude oil dropped 4.8% on Monday, although analysts cautioned that uncertainty remains and negotiations between Washington and Tehran are expected to continue over the next two months. They also noted that even if the strait reopens as expected, it could take several months before energy exports return to normal levels. Oil prices have fallen from above $100 per barrel seen a few weeks ago during heightened tensions. Before the conflict, crude was trading near $70 a barrel. Early Tuesday, US benchmark crude oil slipped 9 cents to $80.66 per barrel, while Brent crude, the international benchmark, fell 24 cents to $82.93 per barrel. Technology shares led gains on Wall Street, particularly companies linked to artificial intelligence (AI). Micron Technology jumped 10.8%, while Advanced Micro Devices (AMD) rose 7%. Nvidia, the world’s most valuable publicly traded company, gained 3.5%, providing the biggest boost to the S&P 500. Meanwhile, SpaceX, the rocket company owned by Elon Musk and parent of AI firm xAI, surged 19.6% in its second day of trading on Wall Street. In the bond market, US Treasury yields edged lower as falling oil prices reduced concerns that central banks may need to keep raising interest rates. The yield on the 10-year Treasury note slipped to 4.47% from 4.48% on Friday. In currency trading, the US dollar was little changed at 160.33 Japanese yen. The euro traded at $1.1580, slightly lower than $1.1592 in the previous session.

In a bid to regain public trust, Islami Bank Bangladesh PLC on Monday announced a special financial assistance program for depositors who incurred heavy losses by prematurely closing their savings and term-deposit accounts during the recent banking crisis. According to a circular issued by the bank management, the special facility will apply to clients who closed or cashed out their various deposit schemes—including MTDR, MSB, MMPDS, and MSSA accounts—prematurely between June 1 and June 15. The bank announced that affected customers will be given a window of the next seven working days to reopen their closed accounts. If reopened within this timeframe, the bank management will waive all associated fees and administrative charges considering the extraordinary situation. Furthermore, these accounts will be treated as continuously active, allowing depositors to enjoy their original profit rates and previously committed benefits without any disruption. Banking sector insiders view this move as highly customer-friendly. Amid intense panic, rumors, and leadership uncertainties surrounding the country's largest Shariah-based commercial lender over the last two weeks, thousands of clients rushed to branches to break their term deposits and savings schemes ahead of maturity, suffering significant financial losses and forfeiting accumulated profits. The special initiative aims to mitigate those financial losses and restore depositor confidence following the central bank's direct intervention in dissolving the bank's controversial board and injecting emergency liquidity. The bank management urged clients not to be swayed by unverified anxieties and advised them to contact their respective branches within the designated period to avail themselves of the policy. Financial analysts believe the move will play a positive role in rebuilding the bank's relationship with its clients and safeguarding long-term public deposits.

Bangladesh Bank (BB) has relaxed foreign exchange regulations, allowing local exporters to sell products directly to foreign consumers through international online marketplaces and digital platforms. The move is expected to expand cross-border e-commerce operations and significantly ease global market access for small and medium enterprises (SMEs). Bangladesh Bank launches nationwide campaign ahead of Bangla QR rollout The central bank issued a circular in this regard on Monday, stating that the initiative aims to facilitate business-to-consumer (B2C) export activities and boost the expansion of digital commerce. Under the new directives, Bangladeshi exporters can now list and display their goods on internationally recognized online marketplaces, enabling foreign buyers to make direct purchases. According to the circular, exporters will be allowed to ship small-scale goods valued up to US $5,000 per consignment under CFR (Cost and Freight) terms. Furthermore, the requirement to submit the export form has been relaxed for export shipments valued up to $1,000. However, the central bank mandated that the full payment for such exports must be received in advance through authorized banking channels or legitimate digital payment systems. To streamline cross-border e-commerce logistics, shipping documents can now be issued directly in the name of the foreign buyer, making the direct delivery process faster and more efficient. The BB guidelines also incorporate customer protection measures, allowing provisions for refunds to foreign buyers in cases of product returns, damaged goods, or quality disputes. Additionally, local businesses have been permitted to legally remit funds abroad to cover required subscription fees, registration costs, membership dues, and other service charges essential for operating on international digital platforms. Industry insiders and e-commerce stakeholders welcomed the decision, noting that local entrepreneurs previously had to rely on a complex 'Business-to-Business and Business-to-Consumer' (B2B and B2C) model, which required pre-shipping goods abroad to be sold via local distributors or platform warehouses. The new policy will pave the way for direct engagement with global consumers, benefiting sectors such as SMEs, handicrafts, leather goods, apparel, home decor, and agro-processed products, while accelerating product diversification and boosting foreign exchange earnings.

Mohammad Zahir Hussain, chairman (Current charge) of Islami Bank Bangladesh PLC, on Monday announced that a new, fully independent and neutral board of directors will be formed very soon to manage the country's largest private commercial bank. Zahir, who is also an executive director of Bangladesh Bank, was tasked with leading a single-member interim board following the dissolution of the entire board on Sunday. Now entire board of Islami Bank dissolved; administrator takes charge to maintain order Speaking to reporters at the bank’s head office in the capital's Dilkusha area, he also urged depositors to carry out their banking transactions smoothly and restore their faith in the institution, stating that "there is no scope for looking back now." "A complete five-member board of directors is in the process of being formed. The screening and verification process is currently underway. We want to appoint completely neutral and qualified individuals who can run this bank with utmost efficiency. I hope a strong, fair, and impartial board will be visible very shortly," Zahid said. He clarified that he is currently overseeing the bank's affairs under a temporary, single-member board framework with the primary objective of ensuring that the daily operations and services of the financial institution remain unhindered. At the press briefing, bank’s acting Managing Director Md Altaf Hossain expressed hope that depositors who had previously withdrawn their funds will return to the bank as stability is restored. He further highlighted that initial data from the bank's major branches indicates a significant positive shift in customer behaviour.  "Information gathered from our prominent branches reveals that account closures have dropped by nearly 75 percent compared to previous weeks. This is a clear indicator that public confidence is steadily returning to Islami Bank," Altaf said. Senior executives and high officials of the bank were also present at the briefing.

The American Chamber of Commerce in Bangladesh (AmCham) on Monday acknowledged the government’s efforts to promote investment and economic stability but noted that several key recommendations remain unaddressed. AmCham emphasized the importance of continued policy reforms to enhance competitiveness, strengthen investor confidence, and accelerate private sector-led growth. US ambassador greets new board of AmCham in Bangladesh AmCham hosted a post-budget panel discussion titled “National Budget FY2026–27: Building Confidence & Competitiveness for Investment-Led Growth” at a city hotel and shared its observations. AmCham President Syed Mohammad Kamal presented the chamber's observations on the FY2026–27 national budget. He welcomed measures such as the VAT exemption on recycled cotton, 0% turnover tax incentives for startups and technology-driven businesses, and continued support for renewable energy through tax exemptions and rebates. While acknowledging these positive steps, he noted that some concerns of the business community remain and emphasized the importance of further tax rationalization to support investment, business growth, and long-term economic development.

Association of Bankers, Bangladesh (ABB) has welcomed the central bank’s decision to dissolve the existing board of directors of Islami Bank Bangladesh PLC,  describing the move as a timely and prudent step to restore stability across the financial sector. A statement issued on Monday from the office of ABB Chairman and Managing Director of City Bank, Mashrur Arefin, expressed relief over the central bank's intervention, noting that the ongoing crisis at Islami Bank had spiraled beyond a single institution and threatened the broader banking industry. Now entire board of Islami Bank dissolved; administrator takes charge to maintain order According to the release, the apex body of bank executives had formally conveyed its deep concerns to the Governor of Bangladesh Bank on June 10, warning of the systemic risks associated with the unfolding situation. We conveyed that an early resolution would be beneficial for the industry, as the situation at Islami Bank was no longer an issue concerning a single institution; its impact was being felt across the banking sector, the ABB statement said.  Given that the dispute had acquired severe political overtones, the association had previously advised the regulator to seek a resolution through dialogue and consensus among relevant stakeholders. In this context, we believe the decision taken yesterday by the central bank is commendable. We hope it will restore stability at Islami Bank and rebuild the confidence of its depositors, investors, and stakeholders, the statement added. Highlighting the massive footprint of the country’s largest private commercial bank, the ABB emphasised that the stability of Islami Bank is inextricably linked to the national economy. The bank boasts nearly 30 million customers, a vast deposit and investment portfolio, the nation's largest remittance network, and a commanding share in international trade finance. The association pointed out that recent "mob-driven protests" at the bank's headquarters triggered widespread anxiety within the financial fraternity regarding institutional governance, liquidity preservation, and the confidence of both domestic depositors and foreign investors. The ABB expressed optimism that the appointment of an interim authority would allay these pressing concerns. The bankers' association outlined critical expectations for the revitalized institution, calling for substantial progress in establishing robust good governance, strict accountability, a banking environment entirely free from political influence, and the aggressive recovery of the bank's massive volume of non-performing loans (NPLs).

Expressing deep concerns over the lingering uncertainty surrounding Islami Bank Bangladesh PLC, the Islami Bank Sachetan Grahak Forum on Monday demanded the immediate formation of a fully-fledged, competent and professional board of directors to restore public trust in the bank. It emphasised that the recent appointment of an administrator by the central bank after dissolution of the regular board is not a permanent solution and could instead complicate the existing crisis. Prof Nur Nabi Manik, the convener of the forum, made the demands while reading out a written statement at a press conference held at the Islami Bank Tower in the capital's Dilkusha area. He pointed out that Islami Bank is not just an ordinary financial institution; it holds the deposits of millions of citizens, handles the major share of inward foreign remittances from expatriates, finances small entrepreneurs, and serves as a vital pillar of the country's rural economy. “Therefore, any disruption or decision regarding the bank directly impacts the overall stability of the financial sector.” Forum leaders mentioned that they had previously placed demands before Bangladesh Bank for the removal of the controversial chairman, the reinstatement of former Managing Director Omar Faruk Khan, and the establishment of an acceptable management structure. However, bypassing those demands, the central bank opted to dissolve the entire board and centralise all administrative powers under a single administrator, they said. The organisation asserted that running a major commercial bank under a long-term administrator-dependent system is undesirable, as it centralises decision-making and denies representation to vital stakeholders. It, however, acknowledged that the central bank's timely injection of emergency liquidity support and the removal of the controversial chairman provided some temporary relief to the ongoing operational impasse. Speakers at the press conference urged the government and the regulatory authorities to stop issuing contradictory statements regarding the bank's health, which they claimed intensifies panic among depositors. They requested the central bank to quickly transition from a temporary administrative regime to a permanent, professional management board to secure public money and protect the financial ecosystem.

Gold prices in Bangladesh have surged by Tk 12,072 per bhori over two consecutive days, reversing a prolonged declining trend, as the Bangladesh Jewellers Association (BAJUS) cited rising pure gold prices in the local market. BAJUS raised the price of 22-carat gold by Tk 5,482 per bhori on Monday, setting the new rate at Tk 2,30,422. The revision took effect from 10:00am. The hike follows a Tk 6,590 increase announced on Sunday, when the rate was fixed at Tk 2,24,940 per bhori for 22-carat gold. BAJUS said the adjustments reflect an increase in the price of tejabi (pure) gold in the domestic market, which necessitated a comprehensive revision of rates. Under the revised pricing, the per-bhori (11.664 grams) rates now stand as follows: 22-carat at Tk 2,30,422; 21-carat at Tk 2,19,983; 18-carat at Tk 1,88,549; and traditional (sanatan) method gold at Tk 1,53,557. Gold prices in Bangladesh have been adjusted 75 times so far in 2026, raised on 39 occasions and reduced on 36. Alongside gold, silver prices also increased on Monday. The 22-carat silver rate rose by Tk 233 per bhori to Tk 5,365. Other silver rates: 21-carat at Tk 5,132, 18-carat at Tk 4,432, and traditional method at Tk 3,324 per bhori. Silver pricing has been revised 46 times in 2026 so far, with 24 increases and 22 reductions. 

Share prices soared Monday in Asia after a tentative deal was announced on ending the Iran war and reopening the Strait of Hormuz. Benchmarks in Tokyo and Seoul initially gained more than 5% early Monday. Oil prices fell more than $4 a barrel. The future for the S&P 500 was up 1% and that for the Dow Jones Industrial Average gained 0.9%, auguring likely early gains for Wall Street. U.S. President Donald Trump confirmed the initial agreement and authorized an end to the U.S. naval blockade of Iranian ports. Iran confirmed it but signaled that implementation would not start until a signing that Pakistan said would be held Friday in Switzerland. Broader negotiations on issues like Iran’s nuclear program are expected to continue over the next 60 days. In early trading Monday, the price of Brent crude oil, the international standard, fell $3.61 to $83.64 per barrel. U.S. benchmark crude lost $4.27 to $80.61 per barrel. But it may take months for oil prices to stabilize after the disruptions from the war caused them to surge, pushing costs up gasoline and many other products. Energy experts said shipping and insurance companies will want to be confident the pact will hold, ensuring that oil and gas supplies will flow freely enough for the world’s needs to be met. “Markets are likely to be cautious in not over-extending optimism as they watch for an actual resumption of traffic across Hormuz,” Mizuho Bank analysts said in a commentary. Still, the news was a huge relief for markets that have been roiled since the conflict began in late February. The deal on ending the war offers relief to the global economy more than three months since fighting began. Stocks rallied in Asia, where Tokyo's Nikkei 225 gained 5.4% to 69,603.91 as the benchmark logged another record high. Buying was heaviest for technology shares, especially those related to artificial intelligence. The boom in AI has been driving gains in Japan, where the benchmark has gained more than 80% in the last year. “This is great news," said Takashi Hiroki, chief strategist at Monex. “Buying by foreign investors is leading the market with expectations of easing tensions around the situation in the Middle East. Then the decline in New York crude oil futures is supporting this positive market.” The Kospi in Seoul surged 4.9% to 8,517.93. In Hong Kong, the Hang Seng gained 0.6% to 24,867.94, while the Shanghai Composite index was up 1.1% to 4,073.08. Australia's S&P/ASX 200 advanced 1.4% to 8,922.90. Taiwan's Taiex was up 2.5%. On Friday, U.S. stocks as Musk's SpaceX soared in its highly anticipated debut on Wall Street. The strong debut suggested plenty of demand still exists among investors for AI after its stock leaped 19.2% in its first day of trading. That gave Elon Musk’s rocket company a total value of $2.1 trillion, making it bigger than Exxon Mobil, Bank of America and Coca-Cola combined. In addition to building rockets, SpaceX also owns the artificial intelligence company xAI. The S&P 500 added 0.5% to close out its 10th winning week in the last 11. The Dow Jones Industrial Average climbed 353 points, or 0.7%, and the Nasdaq composite gained 0.3%. In other dealings early Monday, the dollar rose to 160.20 Japanese yen from 160.12 yen late Friday. The euro climbed to $1.1595 from $1.1578.