United News of Bangladesh

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.  

In a dramatic regulatory move, Bangladesh Bank on Sunday dissolved the entire Board of Directors of Islami Bank Bangladesh PLC, including its newly appointed chairman, in what it said was a move to protect the interests of depositors and safeguard public money. The central bank removed all directors of the country’s largest Shariah-based commercial lender with immediate effect under the powers vested in it by the Bank Company Act, 1991. BB appoints observer to Islami Bank to restore discipline, protect depositors Bangladesh Bank Assistant Spokesperson Shahriar Siddiqui confirmed the development, noting that the unprecedented step was taken in the public interest to ensure good governance and maintain stability across the banking sector. According to a circular issued by the central bank on Sunday evening, the appointments of the chairman and all existing directors on the board have been cancelled. To maintain continuity in the bank's administration and supervisory operations, the central bank has vested all powers and duties of the dissolved board in Bangladesh Bank Executive Director Mohammad Johir Hossain.  He will exercise full managerial and administrative authority under Section 47(3) of the Bank Company Act, 1991, effectively serving as the administrator. The sweeping intervention follows intense scrutiny, severe liquidity challenges, and public controversies surrounding the management and leadership changes at Islami Bank. Financial analysts believe it is too early to tell whether the direct takeover of the board by the regulatory authority can indeed be a step towards restoring regular financial operations, calming panic-stricken depositors, and stabilizing the country's broader financial landscape.

National Board of Revenue (NBR) Chairman Md. Abdur Rahman Khan on Sunday said that unprecedented steps have been taken in the proposed budget for fiscal year FY2026-27 to create a deregulated environment for businesses. "For a long time, export-oriented businesses have been demanding the expansion of bonded warehouse facilities. Previously, those who did not own a bonded warehouse faced numerous complications in collecting raw materials from bond-facilitated institutions. The new budget has eliminated these limitations," the NBR chief said. He made the remarks as the chief guest while addressing a seminar titled "Analysis of Finance Bill 2026-27" at the Economic Reporters' Forum (ERF) auditorium in the capital on Sunday afternoon. The NBR Chairman explained that apparel exporters with bonded warehouses can now smoothly sell raw materials to other exporters who lack such facilities. "This decision will immensely benefit the country's backward linkage industries and enhance the capability of local industries," he added. He further noted that the previous continuous bond facility was restricted, requiring approval from the commissionerate to import raw materials for another institution. This facility has now been expanded to the inter-commissionerate level. Furthermore, bond licenses will now be accessible to entrepreneurs across any sector upon application, moving away from the previous practice where only a few selected sectors enjoyed the privilege. For businesses that do not wish to take a bond license but are interested in duty-free imports, the NBR has introduced a new option allowing them to import duty-free raw materials against bank guarantees, the Chairman announced. Highlighting reforms in the Authorized Economic Operator (AEO) facility, which allows businesses fast-track customs clearance without regular physical inspections at ports, the NBR chief said that the mandatory requirement of submitting audit reports has been relaxed. This relaxation aims to encourage more businesses to apply, as audit reports are often delayed outside the taxpayers' control. The NBR Chairman also disclosed a major revenue-protection initiative, stating that the revenue board will introduce QR codes on cigarette packets to verify tax compliance. He revealed that around 15 percent of cigarettes in the market currently go untaxed due to false manufacturing or import declarations. "Once the QR codes are implemented on cigarette packets, the scope for tax evasion will be eliminated, enabling the state to realize an additional Tk 2,000 crore in revenue," Dr. Khan stated. The seminar was presided over by ERF President Doulat Akhter and moderated by the organization's General Secretary Abul Kashem. NBR Second Secretary (VAT) Badruzzaman Munshi and First Secretary (Customs Policy) Tareq Hassan, among other high officials, were also present at the event.

Bangladesh Association of Banks (BAB) has strongly demanded the swift identification and legal recovery of embezzled and looted funds from the banking sector to protect the interests of ordinary depositors. Welcoming the proposed national budget for fiscal year 2026-27, the apex body of private commercial bank owners, stated that merely recapitalising weak banks will not make the financial sector sustainable in the long run unless past irregularities and financial plundering are effectively resolved. Steps underway to resolve Islami Bank crisis, emergency liquidity support to be provided: Governor Abdul Hai Sarker, Chairman of BAB issued a post-budget statement following the presentation of the national budget in parliament. The government has allocated approximately Tk 40,000 crore for weak banks, which it termed a crucial step toward restoring stability in the banking sector. However, the association emphasised that to reap the actual benefits of this recapitalisation, the immediate recovery of looted assets must be ensured simultaneously. Strengthening banks with public money can only be successful when those who abused these funds are held strictly accountable, BAB added. The organisation further stressed that visible and punitive actions against those responsible are imperative to rebuild depositors' trust. "Legal action must be taken against willful defaulters and those who have crippled the banking system. Under no circumstances should they be allowed back into the financial sector," the statement reads, adding that such steps would not only restore financial discipline but also deter future irregularities. As part of comprehensive banking sector reforms, BAB highlighted the necessity of forming an effective Asset Management Company (AMC). Such an institution could play a pivotal role in reducing non-performing loans (NPLs) of weak banks and strengthening their balance sheets, it said. BAB also called for clear and transparent policy formulation regarding the management and disposal of shares and assets acquired through illicit financial irregularities. Warning of potential long-term risks, the association cautioned that if the recovery process is not executed effectively, bailouts using state funds will only offer temporary relief without yielding the desired structural results. It urged the government to implement a tripartite approach focusing equally on "Reform, Recovery, and Accountability" alongside the recapitalisation process.