United News of Bangladesh

Bangladesh Bank on Tuesday unveiled its monetary policy for the July-December period, retaining the policy rate at 10 percent while seeking to curb inflation. Governor Mostaqur Rahman announced the monetary policy for the first half of the new fiscal year at a press conference held at the central bank. Bangladesh Bank (BB) will firmly stick to its flexible, market-determined exchange rate regime to protect the country's external sector from international shocks, expand exports, and optimize remittance inflows, official sources said. Unveiling the new Monetary Policy Statement (MPS) for the July–December period of the fiscal year FY2026-27, Mostaqur Rahman reiterated that the market-driven exchange mechanism remains a vital strategic pillar for the country's macroeconomic stability.  

Bangladesh Bank (BB) is likely to keep its key policy interest rate unchanged at 10 percent shelving an earlier plan to lower the rate amid growing global economic uncertainty triggered by the recent geopolitical tensions in the Middle East. The central bank is scheduled to announce the monetary policy on Tuesday afternoon at a press conference. The governor initially convened a meeting of the Monetary Policy Committee (MPC) with a proposal to reduce the policy rate in an effort to lower borrowing costs, encourage private sector investment and support employment generation, according to Bangladesh Bank sources. However, the central bank later dropped the plan after the sudden escalation of tensions in the Middle East raised fresh concerns over global economic stability and the risk of renewed inflationary pressures, the sources said. The decision comes despite private sector credit growth falling to a record low. In its monetary policy for FY2025-26, Bangladesh Bank projected private sector credit growth to reach 8.50 percent by June. However, official data showed that credit growth stood at only 4.75 percent at the end of April, the lowest level on record.

Bangladesh Bank (BB) has formally launched a Tk 10,000 crore special refinancing scheme to boost agricultural production and ensure food security, while revising key provisions from its initial proposal.  The new directive replaces the plan to use foreign currency reserves with domestic bank surplus liquidity and reduces the scheme's duration from five years to three. Through an Agriculture Credit Department (ACD) circular, issued today (Sunday) and sent to the Managing Directors/Chief Executives Officers of all banks, the central bank provided a comprehensive set of revised operating guidelines for the scheme. This follow-up circular replaces critical parameters previously outlined in the June 8, 2026. A fundamental shift in policy has occurred regarding the source of funding. According to today's circular, the Tk 10,000 crore scheme is no longer dependent on using foreign currency reserves. Instead, it will be constituted from the surplus liquidity of scheduled banks operating under the management of Bangladesh Bank. This change ensures the program operates strictly with domestic funds, preserving external reserves. The duration of the scheme has also been adjusted. The central bank specified that the new refinancing tenor is now fixed at three (3) years from the date of the new circular issuance, down from the original five-year proposal. All other instructions and provisions of the June 8, 2026, circular that were not specifically amended remain unchanged. Bangladesh Bank stated that these new guidelines are effective immediately. This revised approach by the central bank appears intended to streamline the refinancing process by leveraging domestic banking liquidity while supporting the crucial agriculture sector—responsible for rural employment and national food security—in a sustainable and less reserve-dependent manner.

Bangladesh Bank (BB) has announced that the usage of standardised Interoperable Quick Response (QR) code, known as "Bangla QR," will become mandatory across the country from July 1, 2026, to minimise cash transactions and transition toward a cashless economy. BB Deputy Governor Nurun Nahar made the announcement at the inauguration ceremony of "Bangla QR Transaction Campaign" held at the central bank's headquarters in Motijheel on Thursday. Chairman of Association of Bankers, Bangladesh (ABB) and City Bank Managing Director Mashrur Arefin, along with chief executives and managing directors of various commercial banks were present at the event. "The initiative to launch Bangla QR has been taken to build a cashless society by reducing cash transactions," said Deputy Governor Nurun Nahar. She explained that the system will allow retail customers to pay exact billing amounts seamlessly without the hassle of carrying loose cash or paying additional costs, making payments more convenient, secure, and safe. Deputy Governor Dr. Habibur Rahman noted that because digital channels systematically document transactions, the informal or undocumented economic footprint will shrink.  This structural shift is expected to expand the size of the national Gross Domestic Product (GDP), stimulate broader economic activities, and strengthen the country’s overall macroeconomic foundation as more citizens join the digital financial ecosystem, he said Dr. Habibur urged all commercial banks and payment system operators to integrate the Bangla QR functionality directly into their proprietary mobile applications, facilitating easy access to digital financial services for both general citizens and small-scale cottage merchants. Deputy Governor Kabir Ahmed highlighted that shifting the majority of retail transactions to digital platforms will drastically improve the country’s tax-to-GDP ratio. This formalisation, he noted, will boost the government's revenue collections and accelerate public development projects. Ahmed also revealed that a fully interoperable Instant Payment System (IPS) is slated for launch next year. Once functional, the platform will enable instantaneous fund transfers from any mobile financial service (MFS) wallet to a bank account, and vice versa. "Every step of a digital transaction leaves a distinct digital trail or footprint," Ahmed stated, adding that this real-time traceability will significantly ease the monitoring of fund flows and bolster national anti-money laundering frameworks.  According to the central bank, the primary objective of the campaign, organised by its Communications and Publications Department, is to directly demonstrate the operational efficiency of cashless frameworks in daily transactions and scale up digital payment adoption. A number of top fast-moving consumer goods (FMCG) and mega-retail brands in the country participated in the campaign. Central bank officials and employees actively participated by scanning Bangla QR codes at temporary stalls inside the bank premises to complete purchases and clear utility bills. Prominent companies participating in the event included Unilever Bangladesh, Agora (Rahimafrooz), Meena Bazar, ACI Logistics Limited (Shwapno), Unimart, Savoy Ice Cream, RFL Group, and MR. DIY.  

Bangladesh Bank (BB) Governor Md Mostaqur Rahman has expressed agreement in principle with the seven-point demand put forward by the Islami Bank Sachetan Grahak Forum to restore corporate governance in Islami Bank Bangladesh PLC, the platform said on Wednesday. It said central bank Deputy Governor Kabir Ahmed conveyed this to the forum leaders during a meeting at the central bank headquarters. Speaking to journalists after the meeting, the convener of the forum Prof Nur Nabi Manik said the governor took the matter positively. He said the deputy governor told them that the central bank chief agreed in principle with their demands. The forum chief reiterated their core position, emphasising that individuals tainted by financial irregularities, loan scams, or institutional plunder must be permanently barred from occupying positions on the board of directors or holding the post of chairman at Islami Bank. "The new board must consist entirely of highly ethical, professional, and politically neutral individuals," Manik added. He expressed optimism that rebuilding the board based on their seven-point charter will heavily reinforce depositor confidence and restore structural stability to the country's largest Shariah-based commercial lender. Forum leaders assured the central bank that once their demands are visibly implemented on the ground, they will disseminate positive messages to millions of depositors across the country, playing a supportive role in rebuilding the bank's operational legacy. The demands of the forum are formation of an independent, capable, and professional board of directors; reviewing the controversial ownership and shareholding changes of 2017 to reinstate the rights of genuine, original owners; establishing a special tribunal to fast-track the trial of those accused of plundering bank funds; immediate recovery of looted capital and confiscation of illicitly acquired assets; refraining from controversial or arbitrary regulatory decisions to curb panic and volatility across the banking sector; amending Section 18(a) of the Bank Company Act to close rehabilitation loops for financial fraudsters; and withdrawing misleading political statements regarding the bank's health made in Parliament.

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.

Bangladesh Bank (BB) has provided an emergency liquidity support of Tk 2,500 crore for Islami Bank Bangladesh PLC to help the Shariah-based lender mitigate its severe cash crunch and resume suspended clearing operations. The central bank approved the liquidity support on Sunday, allocating the special fund directly into Islami Bank’s current account maintained with the BB, according to sources in both institutions. Following the financial injection, the bank's halted cheque clearing system has resumed. According to a top executive at Islami Bank, the bank has been facing an exceptional spike in cash demand. "Deposits are almost non-existent at the moment, while everyone is rushing to withdraw their funds," the official said on condition of anonymity. The liquidity strain escalated further following recent leadership shifts and administrative disputes. Before Eid-ul-Azha holidays on May 24, bank's then-chairman M Zubaidur Rahman resigned. Later that evening, former Bangladesh Bank Deputy Governor Md Khurshid Alam was appointed as an independent director and new chairman of the bank. Currently, five independent directors on Islami Bank's board, including the chairman, are central bank appointees. Following these changes, protests broke out under the banner of the "Islami Bank Sachetan Grahak Forum", pressing a seven-point demand that includes the removal of the new chairman. The unfolding situation at Islami Bank also triggered heated debates between treasury and opposition benches in Parliament. Amid growing public discourse, panic withdrawals intensified among clients, prompting Islami Bank to formally seek Tk 10,000 crore in emergency financial assistance from the central bank. Sunday's Tk 2,500 crore fund injection marks the first major deployment to stabilise the institution.

In a major move to inject vitality into a sluggish economy and generate employment, Bangladesh Bank (BB) on Thursday night announced a Tk 20,000-crore pre-refinancing scheme aimed at fully reviving closed and partially operational industries. Under this new policy, titled the "Pre-Refinancing Scheme for Assisting Closed Large-Scale Industry and Service Sectors," eligible business entities and corporate groups can secure working capital loans up to Tk 200 crore at a highly concessional interest rate of 7 percent. The initiative offers massive relief to manufacturers, given that the market interest rate across commercial banks currently exceeds 14 percent following recent monetary tightening. The central bank issued a comprehensive circular detailing the implementation guidelines late Thursday. This policy stems from a broader economic recovery roadmap announced on May 23 by Bangladesh Bank Governor Mostafizur Rahman, who promised a Tk 60,000-crore master fund to stimulate economic growth. According to the guidelines, commercial banks will pull funds from this central bank repository at a 4 percent interest rate and disburse it to qualified industrial and service enterprises at a maximum capped rate of 7 percent. All scheduled banks operating in Bangladesh are eligible to participate in the scheme. The central bank noted that the fund primarily targets large-scale manufacturing and service establishments that possess the necessary machinery and infrastructure but are suffering from production stoppages solely due to an acute shortage of working capital. Special emphasis will be placed on boosting export volumes and generating fresh employment opportunities. Partial or completely closed enterprises capable of resuming full operations will receive priority. Furthermore, efficient, functional companies that acquire or lease underperforming or closed external factories to revitalize them will also receive priority access to the credit facility. To maintain financial discipline, the central bank has imposed strict compliance checks. Borrowers must have a clean slate in the Credit Information Bureau (CIB) database, with no active loan defaults. Any business or entrepreneur with a record of money laundering or past credit misappropriation will be strictly barred from accessing the fund. Loan Utilization Rules: The tenure of the working capital loan will be a maximum of one year at the customer level, renewable based on actual performance and utilization. Borrowers will also enjoy a six-month grace period, meaning interest installment collections will only begin after the first six months. The policy strictly regulates how the loan can be spent. Companies can use the funds to cover up to four months of wages and allowances for workers and staff. It can also be utilized to clear utility dues (electricity, gas) and procure raw materials necessary for immediate production. To ensure transparency, all worker salaries must be routed directly into their respective bank accounts or verified Mobile Financial Services (MFS) accounts linked to their National Identity (NID) cards. Cash transactions are strictly prohibited. The central bank explicitly stated that these loans cannot be used to adjust, settle, or pay off any pre-existing bank liabilities or debts. Strict Monitoring & State Recognition: To prevent fund diversion, Bangladesh Bank has mandated a rigorous oversight framework. Lending banks must collect weekly sales and revenue reports from the borrowers. Bank representatives will be required to physically inspect the factory premises every three months to prepare compliance reports, while Bangladesh Bank reserves the right to conduct surprise spot inspections at any time. Borrowers must channel all business-related income and expenditures through a single, designated bank account. Failure to repay the funds on time will result in the central bank automatically deducting the outstanding amount directly from the respective commercial bank’s current account held with Bangladesh Bank, alongside a 2 percent punitive interest penalty. In a unique motivational approach, the central bank announced that companies, entrepreneurs, and banks that demonstrate successful implementation and actively contribute to the national economy through this scheme will be honored with official state recognition.

The government has introduced a newly designed Tk 5 currency note under the theme “Historical and Archaeological Architecture of Bangladesh,” which will enter circulation from Tuesday. According to a press release issued by the Finance Division, the new note bears the signature of Finance Secretary Dr Md Khairuzzaman Mozumder and will initially be available from the Motijheel office of Bangladesh Bank before being distributed through its other offices across the country. The new Tk 5 note measures 117 mm by 60 mm and features an image of Tara Mosque in Dhaka on the left side of the front panel. The middle portion carries a background design with Bangladesh’s national flower, the water lily, including leaves and buds. The reverse side of the note contains an image titled “Graffiti-2024.” The note has a predominantly light pink colour scheme and includes several security features. These include a 2 mm-wide embedded security thread visible from both sides when held against light, and a watermark showing the face of a Royal Bengal Tiger along with a bright electrotype watermark marked “5” and the monogram of the Government of Bangladesh. In addition, the front side contains repeated microprinted “BANGLADESH” text above the bluish guilloche pattern at the lower portion of the note. The Finance Division said all existing paper notes and metallic coins currently in circulation will remain valid alongside the new Tk 5 note. Considering the interest of currency collectors, Bangladesh Bank has also printed non-exchangeable specimen notes of the new Tk 5 design. These can be collected at a fixed price from the Bangladesh Bank Currency Museum in Mirpur.

Scheduled banks across the country will remain closed for seven consecutive days – from May 25 to May 31 – on the occasion of Eid-ul-Azha, according to Bangladesh Bank (BB). The central bank issued a notification on Monday stating that in accordance with the Ministry of Public Administration’s notification, all branches and sub-branches of scheduled banks will operate under normal working hours on May 23 (Saturday) and May 24 (Sunday), right before the holidays begin. Govt to cut bank borrowing in FY27 to spur private credit, curb inflation However, special arrangements have been made to facilitate the payment of salaries, bonuses, and other allowances to garment workers, as well as to keep import and export activities active ahead of the festival. To support this, bank branches located in garment-industrial zones, including Dhaka city, Ashulia, Tongi, Gazipur, Savar, Bhaluka, Narayanganj, and Chattogram, will remain open on a limited scale on May 25 and 26. According to the BB directive, during those two days, the office hours for these specific branches will be from 10:00am to 3:00pm, while transactions will be conducted from 10:00am to 1:00pm. Furthermore, bank branches, sub-branches, and booths situated in sea port, land port and airport areas have been directed to keep import-export activities functional on a limited scale. The central bank instructed the relevant desks to continue essential banking operations throughout the holiday period (from May 25 to May 31, excluding Eid day.