United News of Bangladesh

Bangladesh Jewellers Association (BAJUS) on Wednesday raised the price of gold by Tk 2,216 per bhori, setting the new rate for 22-carat gold at Tk 2,50,193 per bhori, effective immediately. In a morning statement, BAJUS said the price revision was made in light of the overall market situation following a rise in the price of pure (tejabi) gold in the local market. Under the revised rates, 21-carat gold will be sold at Tk 2,38,820 per bhori, 18-carat at Tk 2,04,703, and traditional-method gold at Tk 1,66,737 per bhori (1 bhori = 11.664 grams). The last adjustment was made on the morning of April 9, when BAJUS had cut the price by Tk 4,432 per bhori, setting the 22-carat rate at Tk 2,47,977. So far in 2026, gold prices in the domestic market have been revised 55 times; raised on 32 occasions and reduced on 23. Silver prices also revised upward Alongside gold, BAJUS also raised silver prices on Wednesday, increasing the rate by Tk 350 per bhori. The new price of 22-carat silver has been fixed at Tk 6,065 per bhori. Other revised silver rates include: 21-carat at Tk 5,774 per bhori, 18-carat at Tk 4,957 per bhori, and traditional-method silver at Tk 3,732 per bhori. Silver prices have been adjusted 34 times so far this year; increased on 19 occasions and reduced on the remaining 15.

The International Monetary Fund on Tuesday lowered its global growth forecast, warning that the ongoing Iran war has disrupted economic momentum and is likely to push inflation higher worldwide. In its latest World Economic Outlook, the IMF projected global growth at 3.1% for 2026, down from the 3.3% forecast in January. The figure also reflects a slowdown from the estimated 3.4% growth in 2025. The downgrade comes as US and Israeli strikes on Iran, along with Tehran’s closure of the Strait of Hormuz and retaliatory attacks on regional energy infrastructure, have driven up global oil and gas prices. As a result, the IMF raised its global inflation forecast to 4.4% this year, compared to 4.1% in 2025 and its earlier estimate of 3.8% for 2026. Before the conflict, the global economy had shown resilience despite protectionist trade policies introduced by Donald Trump, including tariffs on imports. A strong technology sector, driven by investments in data centres and artificial intelligence, had also supported growth. “War in the Middle East has halted this momentum,” IMF Chief Economist Pierre-Olivier Gourinchas wrote in an accompanying blog post. The IMF’s baseline outlook assumes the conflict will be short-lived and that energy prices will rise by around 19% this year. However, in a more severe scenario where disruptions persist and central banks raise interest rates to curb inflation, global growth could fall to 2% in both 2026 and 2027. “Despite the recent news of a temporary ceasefire, some damage is already done, and the downside risks remain elevated,” Gourinchas added. The fund slightly reduced its US growth forecast to 2.3% for this year. Growth in the eurozone is expected to slow to 1.1%, down from 1.4% in 2025, as higher natural gas prices weigh on the region. Lower-income, energy-importing countries are expected to be hit hardest, with Sub-Saharan Africa’s growth forecast cut to 4.3% from 4.6% projected earlier. Meanwhile, Russia could benefit from higher energy prices, with the IMF slightly raising its growth outlook to 1.1% despite ongoing sanctions following its invasion of Ukraine. Andriy Pyshnyy said rising fuel costs linked to the Iran conflict are also affecting Ukraine, pushing inflation to 7.9% in March, above earlier projections. He warned that fuel prices could further increase inflation by up to 2.8 percentage points. “We are trying to walk on a razor blade,” he said, highlighting the challenges facing Ukraine’s economy amid ongoing war with Russia. The IMF, a 191-nation lending organisation, works to promote global economic stability and reduce poverty.

A 22-member delegation of the Dhaka Chamber of Commerce and Industry (DCCI) will leave here for Guangzhou, China on Wednesday on a five-day visit aimed at strengthening Bangladesh-China economic engagement and expand bilateral trade and investment cooperation. The delegation, led by DCCI Senior Vice President Razeev H Chowdhury, comprises exporters and importers involved in food manufacturing, ceramics, information technology, automotive, industrial oil and grease, shipping and logistics services, electrical and electronics, pharmaceuticals, renewable energy, defence equipment and ready-made garment sectors, according to a press release issued on Tuesday. During the visit, the DCCI team will participate in a series of business forums and B2B networking sessions with leading Chinese trade promotion organisations and chambers, including CCPIT Guangzhou, CCPIT Guangzhou Nansha, Guangzhou Nansha Association of Trade in Services, Guangdong Chamber of Commerce of Importers & Exporters, China Chamber of Commerce for Import and Export of Machinery and Electronics Products and Guangzhou Overseas Enterprises Chamber of Commerce. The programme will also feature participation in China’s premier international trade exhibition, the Canton Fair, where the delegation will engage in structured buyer-seller matchmaking sessions and on-site business exploration. The team is also scheduled to attend the Guangzhou Sourcing Fair. Through the visit, DCCI aims to promote international trade, strengthen private sector collaboration and support Bangladeshi enterprises in integrating more effectively into global supply chains, the release added.

Economic growth in developing Asia and the Pacific is expected to remain resilient at 5.1 percent in 2026 and 2027, but a prolonged conflict in the Middle East stands as the most significant threat to this outlook, according to senior experts at the Asian Development Bank (ADB). In a detailed analysis of the regions macroeconomic landscape, ADBs Economic Research and Development Impact Department (ERDI) Director Matteo Lanzafame, along with economists Gabriele Ciminelli and John Beirne, warned that while the region is holding up, it remains highly vulnerable to external shocks. ADB approves $115.8m loan to upgrade urban services  in Narayanganj city The experts noted that the current growth forecast of 5.1 percent hinges on an early stabilisation of the Middle East conflict. However, they characterised the projection as subject to extreme uncertainty. The conflict is currently driving up energy costs and disrupting vital shipping routes. This is compounded by trade policy uncertainty and the fading frontloading effect seen last year where exporters rushed shipments ahead of anticipated US tariff hikes. These shocks are hitting a region that is highly dependent on imported oil and deeply integrated into global trade networks, the experts stated. Despite these headwinds, they highlighted that robust domestic demand and services activity continue to cushion the impact. Inflation is showing signs of a resurgence in early 2026, following a brief easing last year. The ADB economists observed that higher energy and food prices are beginning to feed through to consumer costs across the region. Financial markets are already signaling heightened risk, with rising bond yields pushing up borrowing costs and currencies in energy-dependent economies coming under pressure. Investors are also shifting toward safer assets, evidenced by a surge in regional demand for gold. They raised alarms over food prices, which began picking up late in 2025. The Middle East conflict has not only increased transport costs but also threatens to disrupt the supply of fertilizers. This is a particular concern as it would have disproportionately negative effects on the regions lower-income households, who spend a larger share of their income on food, the economists warned. To mitigate these mounting pressures, the ADB experts urged governments to adopt disciplined and targeted policies. They suggested that support should be time-bound and focused on the most vulnerable, rather than broad-based subsidies that strain budgets. Governments should also implement demand-side measures such as temperature mandates for air-conditioning and encouraging work-from-home schedules. Protecting investment in renewable energy and infrastructure was cited as critical to reducing long-term exposure to global shocks. Despite the global backdrop, the experts identified South Asia, particularly India, as the regions growth leader, driven by strong internal consumption. Additionally, economies specialised in electronics and Artificial Intelligence (AI) products continue to see export success, defying the broader global trade slowdown, the added.

Bangladesh’s potential accession to the Regional Comprehensive Economic Partnership (RCEP) could deliver positive trade and welfare gains, but also pose significant fiscal and structural challenges, according to a new study. The analysis, conducted by the Research and Policy Integration for Development (RAPID) and published recently, suggests that while joining the world’s largest trade bloc may not immediately transform Bangladesh’s export performance, it could act as a long-term catalyst for economic diversification, regional integration and investment inflows. RCEP, the world’s largest free trade agreement, was signed in November 2020 and came into force on January 1, 2022. The bloc brings together 15 Asia-Pacific economies, comprising the 10 ASEAN member states along with Australia, China, Japan, New Zealand and South Korea, and accounts for nearly 30% of global GDP and population. The agreement aims to lower tariffs, harmonise trade rules and facilitate more efficient regional supply chains. Bangladesh has expressed interest in joining RCEP and has sought New Zealand’s support to secure membership in the world’s largest trade pact. The request was made in March during a bilateral meeting between Commerce Minister Khandakar Abdul Muktadir and New Zealand Trade and Investment Minister Todd McClay in Yaoundé, Cameroon, on the sidelines of a World Trade Organization conference. The study finds that Bangladesh’s exports to RCEP markets could rise modestly, reflecting the country’s existing preferential access as a Least Developed Country (LDC) in several member economies. Simulation results show exports could increase by about $415 million, with an additional $80 million diverted from non-RCEP markets, amounting to less than 1 percent of total exports. “This relatively small gain should not be misinterpreted as a lack of potential,” the report notes, highlighting that Bangladesh already enjoys duty-free access in key markets such as China, Japan and Australia. However, the broader significance lies in positioning Bangladesh within the fast-growing production networks of East and Southeast Asia, where trade is increasingly driven by integrated value chains rather than standalone exports. Currently, Bangladesh’s trade with RCEP is heavily import-dependent, with nearly 70% of total imports sourced from the bloc, while exports remain limited and concentrated in ready-made garments. One of the most immediate risks identified is a sharp decline in tariff revenue following liberalisation. The study estimates that Bangladesh could lose around $4.2 billion in tariff revenue under full liberalisation, equivalent to roughly 1.7% of GDP and nearly 75% of current tariff income. The largest losses are expected from imports originating in China, followed by India and Japan, as tariff elimination and trade diversion shift sourcing patterns. Key affected sectors include electrical machinery, industrial inputs, metals and motor vehicles – products that currently generate a substantial portion of government revenue. Despite these losses, the study notes that consumer welfare will improve due to lower import prices, generating a net welfare gain of over $950 million. The modelling results indicate that Bangladesh will experience a net positive trade effect, driven primarily by increased imports from more efficient RCEP suppliers. Trade creation is expected to exceed trade diversion, although the margin remains relatively narrow. China is projected to capture the largest share of increased trade flows, followed by countries such as Indonesia, Vietnam and Thailand, reflecting their strong industrial base and competitiveness within the bloc. At the same time, non-RCEP partners such as India, the European Union and the United States could face reduced market share in Bangladesh due to shifting import patterns. The report emphasises that Bangladesh's real opportunity lies beyond immediate trade gains, particularly in integrating into regional value chains. Lower-cost imported inputs and improved trade facilitation could enhance competitiveness across multiple sectors, including textiles, leather goods, footwear, pharmaceuticals, plastics and light engineering. Footwear and selected non-RMG products show particularly strong growth potential, with some items projected to see export increases exceeding 100% under tariff liberalisation scenarios. Such diversification is critical as Bangladesh prepares for LDC graduation, which will gradually erode its existing preferential market access. The study also highlights opportunities in digital trade and services, supported by RCEP provisions on e-commerce, paperless trade and data flows. RCEP accession could also serve as a signal to global investors that Bangladesh is ready to operate within a rules-based trade framework. The agreement’s investment provisions covering transparency, investor protection and capital flows could help attract foreign direct investment, particularly in export-oriented manufacturing sectors. However, realising these benefits will depend heavily on domestic reforms, including improvements in infrastructure, logistics, regulatory consistency and energy supply. “RCEP can act as a strategic catalyst, but only if complemented by strong domestic policy adjustments,” the report suggests. Beyond tariffs, Bangladesh will need to align with a wide range of non-tariff measures under RCEP, including standards on customs procedures, sanitary and phytosanitary rules, and technical regulations. While these changes could reduce trade costs and improve market access, they would require significant institutional upgrades and regulatory capacity. The compliance burden is expected to be substantial, particularly given existing constraints in administrative and technical capabilities. The study recommends a phased approach to tariff liberalisation, allowing Bangladesh to manage revenue losses while strengthening domestic tax systems. High-revenue sectors such as fuels, machinery and chemicals may require longer transition periods to avoid abrupt fiscal shocks. At the same time, broader tax reforms, including improvements in VAT administration, will be necessary to offset declining border taxes. Overall, the report concludes that RCEP accession presents a mixed but potentially transformative opportunity for Bangladesh. While short-term export gains may be limited and fiscal risks significant, the long-term benefits – ranging from industrial upgrading to deeper regional integration – could be substantial. As Bangladesh navigates its post-LDC transition, joining RCEP could help secure more stable market access, attract investment and integrate into global production networks. However, the success of such a move will depend on careful policy design, institutional preparedness and the ability to manage the economic adjustments that come with deeper trade liberalisation.

Bangladesh’s stock market saw a sharp decline in March 2026, with the benchmark DSEX index falling 7.53% to 5,178.31, down from 5,600.27 in February. The drop, equivalent to about 422 points, came amid a broad global sell-off, as all major equity indices tracked in the DSE Monthly Market Review recorded monthly losses. While Bangladesh was among the harder-hit markets, steeper declines were observed in Indonesia (-14.42%), Pakistan (-11.50%), and India (-11.49%). March proved a punishing month for global equities, with no market spared. In the Asia-Pacific region, Indonesia’s Jakarta Composite plunged 14.42% to 7,048.22 from 8,235.49 in February. Weekly Analysis: DSE, CSE edge higher, yet most stocks remain in the red Pakistan’s KSE 100 dropped 11.50% to 148,743.31, while India’s S&P BSE SENSEX fell 11.49% to 71,947.55. Taiwan’s weighted index declined 8.18% to 32,518.16, Thailand’s SET lost 5.24%, and Malaysia’s KLSE Composite slipped 1.53%. Among major Asian markets, Japan’s Nikkei 225 fell 9.56% to 53,221.50, Hong Kong’s Hang Seng dropped 6.92% to 24,788.14, and Singapore’s Straits Times Index edged down 2.19% to 4,885.45—the smallest loss in the region. In Europe, Germany’s DAX declined 10.30% to 22,680.04, while the UK’s FTSE 100 fell 6.73% to 10,176.45. The US Dow Jones Industrial Average shed 5.38% to 46,341.51, reflecting a broad risk-off sentiment globally. Despite widespread annual gains across most markets, Bangladesh and India stood out as the only Asia-Pacific economies posting year-on-year declines. The DSEX fell 0.78% compared to March 2025, while India’s SENSEX dropped a steeper 7.06%. In contrast, Taiwan’s index surged 57.12% year-on-year, Japan’s Nikkei rose 49.42%, Thailand’s SET gained 25.05%, and Pakistan’s KSE 100 advanced 26.26% despite its monthly fall. Singapore recorded a 22.98% annual gain, Malaysia 11.67%, and Indonesia 8.26%. In developed markets, the US Dow Jones rose 10.33% and the UK’s FTSE 100 gained 18.57%. Amid equity market weakness, Bangladesh recorded the most significant macroeconomic shift in the region, a 16.10% year-on-year decline in inflation, the sharpest among all markets tracked. This contrasts with rising inflation elsewhere: India (3.20%), Pakistan (7.00%), Indonesia (4.80%), and the United States (2.40%). Only Thailand reported a marginal decline of 0.90%. The sharp disinflation may provide some relief to policymakers and investors despite ongoing market pressure. Bangladesh’s GDP growth at current market prices stood at 11%, the second highest in the review after Taiwan’s 12.70% This outpaced India (7.80%), Singapore (6.90%), and Indonesia (5.40%). Advanced economies lagged significantly, with the US growing at 2%, the UK at 1 percent, and Germany and Japan at just 0.40%. However, Bangladesh’s 10-year government bond yield remained elevated at 10.32% among the highest in the region, behind only Pakistan’s 12.73%. Higher yields tend to divert funds from equities to fixed-income instruments, which may be weighing on the stock market. India’s bond yield stood at 7.00%, Indonesia’s at 6.89%, while Taiwan and Singapore posted much lower yields at 1.54% and 2.89% respectively. Capital market experts said the March data highlights a persistent disconnect between Bangladesh’s strong macroeconomic fundamentals and weak equity market performance. Despite robust GDP growth and sharply declining inflation typically supportive of equities, the DSEX has posted a year-on-year decline, pointing to structural challenges such as high bond yields, shallow market depth, and limited institutional participation. Investment Corporation of Bangladesh (ICB) Chairman Abu Ahmed said a sustained recovery in the DSEX will depend on reducing borrowing costs, maintaining the disinflation trend, and strengthening investor confidence. He added that while March was difficult for investors, the easing inflation trend offers a positive signal that could help stabilise the market in the coming months.

State Minister for Textiles and Jute Md Shariful Alam has expressed optimism that the long-shut Darwani Textile Mill in Nilphamari will be reopened within the next two to three months, creating employment opportunities for local people. “An international tender has already been floated for the Darwani Textile Mill in Nilphamari, and potential investors are showing interest. We expect that the mill will be reopened within two to three months, which will generate employment for local residents,” he added. The state minister said this while talking to reporters after visiting textile mills in Dinajpur and Nilphamari on Sunday, said a PID handout here on Monday. BGMEA claims RMG production dips 25-30%, seeks govt action He said initiatives have been taken in line with the Prime Minister’s election manifesto to reopen closed jute and textile mills across the country. Citing that reopening closed industrial units is one of the government’s election pledges, he said the Textiles and Jute Ministry has been working to revive long-idle textile and jute mills. Shariful Alam also said the textile mill in Dinajpur will be reopened soon. Referring to the rich heritage of jute, popularly known as the “golden fibre,” he said efforts are underway to revive its past glory. “We must work to bring back the golden days of jute,” he said, adding that steps are being taken to ensure fair prices for farmers. The government has taken initiative to raise public awareness to use jute products as an alternative to plastic items. During the visit, Nilphamari-2 lawmaker Al Faruq Abdul Latif, Textiles and Jute Secretary Bilquis Jahan Rimi, among others, were present. Later, the state minister visited a handicraft and cottage industry unit ‘Classical Handmade Products BD Limited’ at Hajiganj in Gorgram union of Nilphamari Sadar Upazila.

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has voiced concern over a significant “drop” in production capacity, reporting a 25-30% decline in garment manufacturing due to the ongoing scarcity of gas and electricity. BGMEA President Mahmud Hasan Khan highlighted these figures during a meeting with Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood and State Minister Aninda Islam Amit at the ministry on Monday. The BGMEA delegation sought urgent government intervention to ensure an uninterrupted energy supply to the ready-made garment (RMG) sector to sustain global competitiveness. Production hit by severe shortages Mahmud Hasan Khan noted that while buyer confidence had improved following the national election, the industry is now grappling with fresh vulnerabilities linked to the Middle East conflict.  He emphasised that neighbouring countries are maintaining superior energy security, leaving Bangladesh’s primary export sector at a disadvantage. The impact is particularly severe in industrial hubs such as Gazipur and Ashulia, where heavy load-shedding and a shortage of diesel for generators are stalling production lines and delaying international shipments, the BGMEA chief said. This energy crisis, coupled with rising raw material and transport costs, has significantly increased the overall cost of production, he said. Strategic proposals for relief To mitigate the crisis, the BGMEA delegation presented several key proposals to the ministry. Emergency Diesel Access: Implementing special arrangements for the rapid delivery of diesel from filling stations to RMG factories. Equitable Gas Distribution: Providing emergency gas connections for small and medium enterprises (SMEs) with boiler capacities of 300-500 kg and ensuring fair distribution across industrial zones near the capital. Infrastructure and Automation: Accelerating the installation of two additional Floating Storage Regasification Units (FSRUs) and simplifying the rollout of Electronic Volume Corrector (EVC) metres. Tax Exemptions: Removing all taxes and VAT on imported fuel at both import and consumer levels to lower production costs and reduce the government's subsidy burden. Transition to Renewable Energy: The association also called for a major policy shift towards green energy. They proposed slashing import duties on essential solar PV components – currently ranging from 28.73% to 61.80% -- to a nominal 1%. This will include solar panels, inverters, DC cables, and Battery Energy Storage Systems (BESS). Government response The minister and state minister acknowledged the RMG sector's critical role in the national economy and assured the delegation that steps are being taken to address the energy shortfall. As an immediate relief measure, the government approved a BGMEA-designed format to facilitate the emergency supply of diesel from nearby filling stations to factories. The meeting was also attended by Energy Secretary Mohammad Saiful Islam, BGMEA First Vice President Selim Rahman, and Vice President (Finance) Mizanur Rahman.

In a move to modernise the financial landscape, Bangladesh Bank (BB) is set to transition into an era of transaction-based money market reference rates, moving away from offer-based indicators. The Debt Management Department of the central bank announced in a press conference on Monday that it will officially begin publishing these new rates on its website starting on Tuesday. Director General of Dept Management Department Istequemal Hussain and acting Spokesperson for the central bank Shahriar Siddiqi spoke at the press conference held at the BB headquarters. The initiative aims to enhance transparency, reliability, and efficiency within the money market segment, similar to the global Secured Overnight Financing Rate (SOFR) model.  Forex market stable, no immediate pressure for Taka devaluation: Bangladesh Bank By establishing a reliable benchmark for interest rates, the central bank expects to bring greater discipline to the financial market. Transition from DIBOR to real-time data Since 2010, the Bangladesh Foreign Exchange Dealers Association (BAFEDA) has been publishing the Dhaka Interbank Offer Rate (DIBOR).  However, because DIBOR is based on ‘offer rates’ provided by member institutions rather than actual transactions, it often fails to reflect the true market condition.  Furthermore, many banks have been inconsistent in providing this data voluntarily. To solve these limitations, Bangladesh Bank will now use its automated systems to calculate rates based on actual interbank trade data. The central bank will introduce two primary benchmark rates – Bangladesh Overnight Financing Rate (BOFR): A risk-free rate based on interbank repo (secured) transactions conducted on the Financial Market Infrastructure (FMI) platform. Dhaka Overnight Money Market Rate (DOMMR): An unsecured money market reference rate based on data from the Electronic Dealing System for Interbank Money Market (EDS Money) platform. Calculation and transparency The rates will be published in the morning of every working day on the Bangladesh Bank website. The calculation will utilise a volume-weighted mean of interest rates and transaction volumes for relevant tenors. To minimise the impact of "outlier" transactions, appropriate statistical methods will be applied to ensure the data accurately reflects market reality. For BOFR, the bank will initially publish overnight and one-week rates. For DOMMR, the tenors will include overnight, one-week, one-month, and three-month rates. If the minimum number of required transactions is not met for a specific tenor, a "rolling window" method will be used – incorporating data from previous working days until the requirement is satisfied. Impact on financial sector Central bank officials noted that this new framework will provide banks, financial institutions, and investors with a reliable indicator at the start of each day. This is expected to facilitate better risk management, valuation of financial products, and the innovation of new money market instruments. “This initiative will align Bangladesh with international standards, increasing the depth and stability of our financial market," the central bank said, adding that by providing a transparent picture of the domestic money market, the bank also hopes to attract more foreign investment.

Oil prices rose in early market trading Sunday after the U.S. said it would blockade Iranian ports beginning Monday. The price of U.S. crude oil rose 8% to $104.24 a barrel and Brent crude oil, the international standard, rose 7% to $102.29. Brent crude has swung dramatically during the Iran war, rising from roughly $70 per barrel before the war in late February to more than $119 at times. On Friday, ahead of the peace talks, Brent for June delivery fell 0.8% to $95.20 per barrel. Iran has been effectively controlling the Strait of Hormuz, a key waterway for global oil shipping. U.S. Central Command said the blockade would be “enforced impartially against vessels of all nations” entering or departing Iranian ports and coastal areas, including all Iranian ports on the Persian Gulf and Gulf of Oman. It said it would still allow ships traveling between non-Iranian ports to transit the Strait of Hormuz. Around a fifth of the world’s traded oil typically flows through the Strait of Hormuz every day. Saudi Arabia, Iraq, the United Arab Emirates, Kuwait, and Iran are all major exporters. Traffic in the strait has been limited even in the days since the ceasefire. Marine trackers say over 40 commercial ships have crossed since the start of the ceasefire. Claudio Galimberti, chief economist of Rystad Energy, said the blockade will raise prices but might move the needle on talks.