United News of Bangladesh

Bangladesh Bank (BB) has removed the mandatory 100 percent cash margin requirement for opening letters of credit (LCs) to import fruits, allowing scheduled banks to set the rate based on their banker-customer relationship. Banking Regulation and Policy Department (BRPD) of the central bank issued a circular on Sunday (August 16), instructing the managing directors and chief executives of all scheduled banks to implement the decision immediately. Previously, under BRPD Circular Letter No. 41 issued on September 5, 2024, Bangladesh Bank imposed a mandatory 100 percent cash margin on luxury items and locally produced import-substitute goods—which included fruits—to manage foreign exchange reserves amid global economic volatility. Explaining the rationale behind the policy shift, the latest circular notes that foreign exchange rates and transactions in Bangladesh have gradually stabilized, reducing the necessity of a rigid 100 percent cash margin requirement. Furthermore, fruits are considered essential nutritious food items for the general public, particularly children, the elderly, sick individuals, and pregnant women. By easing import restrictions, the central bank aims to facilitate smoother imports, maintain affordable price levels, foster competitive market dynamics, and ensure a steady supply of fruits across the country. The circular highlights that all other instructions outlined in BRPD Circular Letter No. 41/2024 and related directives remain unchanged. Mandatory 100 percent LC cash margin for fruit imports replaced with flexible rates based on banker-customer relations and recognition of fruits as vital. Easing import conditions, maintaining affordable prices, strengthening market competition, and securing supply.

Excess liquidity in Bangladesh's banking sector reached an all-time high, crossing Tk 4.08 lakh crore at the end of June 2026, driven by rising bank deposits and a distinct reluctance among entrepreneurs to take new loans for business expansion or establishing industrial plants. Central bank data shows that deposit growth in the banking sector stood at 10.74 percent in June, whereas credit growth to the private sector slowed to 4.47 percent during the same period.  The widening gap between deposit accumulation and credit disbursement has caused idle money in banks to more than double over the past two years—rising from Tk 1.93 lakh crore two years ago and Tk 2.83 lakh crore in June last year to over Tk 4.08 lakh crore in June 2026. The entrepreneurs are hesitant to take loans. Bankers attribute the sharp decline in appetite for new industrial investments to several persistent economic challenges. Unreliable and uncertain supplies of gas and electricity remain the primary impediment. Business owners note that if industrial production cannot run smoothly, servicing bank loan interest turns into a major financial strain. High interest rates, increased business costs, political and economic uncertainties, law and order concerns, and shifting tax and regulatory policies have made entrepreneurs wary of taking on new investment risks. Currently, the bulk of loans being disbursed is going toward working capital, raw material imports, and daily operational needs, with minimal demand for setting up new industries or executing major business expansions. Increased Caution Among Banks In addition to low demand from borrowers, commercial banks have significantly tightened their lending criteria. Following past trends where extensive unverified lending led to a massive surge in non-performing loans (NPLs), financial institutions are exercising extreme caution. Banks are now rigorously assessing business viability, collateral, cash flow, and repayment capabilities before approving new loans. With weaker banks suffering reduced lending capacity, stronger banks holding surplus funds are choosing to park money in safer government instruments—such as treasury bills and bonds—rather than risking capital in high-risk private sector loans. Former President and CEO of Bank Asia, Md. Arfan Ali, told UNB that entrepreneurs remain hesitant due to an unimproved business environment.  He added that the bulk of surplus liquidity is concentrated within a few solid banks, which prefer investing in risk-free government securities. "Unless electricity, gas, and infrastructure problems are adequately addressed, investment demand will not rebound," he emphasized, noting that lowering interest rates alone will not alter the landscape without improvements in the broader business environment.

Dhaka South City Corporation (DSCC) Administrator Abdus Salam on Sunday said the fees for trade licence renewal could be further reduced if National Board of Revenue (NBR) charges included in the prescribed fees are lowered. He made the remarks while attending a view-exchange meeting titled "Improvement of Local Business, Law-and-Order Situation, Traffic Congestion and Trade Licence Renewal Service" as the chief guest at the Dhaka Chamber of Commerce and Industry (DCCI) auditorium. At the programme, the DCCI and DSCC jointly inaugurated the week-long "Trade Licence Service Week 2026." Under the initiative, trade licence holders in the DSCC area, including DCCI members, can renew their licences for fiscal year 2026-27 by paying the prescribed fees from 10:00am-4:00pm on August 16-20 at the DCCI. Salam said the DSCC currently has around 250,000 trade licences, though the actual number of businesses operating within its jurisdiction is significantly higher, and urged all businesses to obtain and renew licences to operate legally. He said the city corporation holds public hearings every Saturday to ensure accountability and gather input from residents and businesses, and added that it is emphasising digital management to make trade licence services harassment-free, with plans to introduce a one-stop service soon. On traffic congestion, the DSCC administrator said initiatives are underway to bring battery-powered auto-rickshaws and hawkers under a registration system, and sought cooperation from the business community to implement one-way traffic systems to help restore the heritage of Old Dhaka. In his welcome remarks, DCCI President Taskeen Ahmed said a trade licence is one of the most important basic documents for operating a business, but entrepreneurs often face difficulties in obtaining and renewing them due to lack of information, uncertainty over required documents, and procedural delays. He said automating the process will significantly cut delays and harassment, adding that introducing multi-year renewal facilities will further ease the burden on businesses. DSCC Chief Executive Officer Md Khoybar Rahman said a major share of the city corporation's revenue comes from holding taxes and trade licence fees, with about 246,180 licences already issued under 294 business categories within the DSCC jurisdiction. He said the city corporation has set a revenue collection target of Tk 150 crore for FY27 and sought cooperation from businesses and residents to help achieve it. Additional Police Commissioner (Admin) of Dhaka Metropolitan Police (DMP) Md Masud Karim said business and investment cannot gain momentum without a supportive law-and-order situation, adding that DMP is prioritising the issue. He urged businesspeople to report any alleged extortion involving police personnel during unloading of goods in Old Dhaka, and said AI-powered cameras installed on several roads have helped ease traffic congestion, with plans underway to expand the programme. Masud also said a policy is being formulated to bring discipline to auto-rickshaw movement through registration and number plates. Speakers at the meeting stressed the need for a conducive business environment, reduced trade licence fees, hassle-free automated renewal, measures against traffic congestion and waterlogging, registration of auto-rickshaws, footpaths free of hawkers, and strict action against extortion by political groups and law enforcement personnel. Following the inaugural session, representatives of 10 DCCI member enterprises received their renewed trade licence copies from the DSCC administrator. DCCI Senior Vice President Razeev H Chowdhury, Vice President Md Salem Sulaiman and members of the Board of Directors were present at the meeting.

Finance and Planning Minister Amir Khosru Mahmud Chowdhury on Sunday said it will take at least two years to resolve Bangladesh’s ongoing gas and electricity shortages. “The problem with gas and electricity will not be resolved within six months or a year. It will take at least two years,” he said. Explaining the timeframe, Khosru said even setting up infrastructure such as floating LNG terminals will take one and a half to two years, making an immediate solution to the energy crisis impossible. He made the remarks while speaking as the chief guest at a luncheon discussion titled “Building Investor Confidence: From Policy Reforms to Effective Implementation”, hosted by the American Chamber of Commerce in Bangladesh (AmCham) at a city hotel. Addressing the country’s banking sector, the minister said it is facing a serious capital deficit due to massive money laundering, and that the government is actively exploring alternative financing mechanisms and dedicated investment funds to support economic growth. "There is a serious deficit in the banking sector as a huge amount of money has been laundered out of the country. Depositors are struggling to get their money back, making immediate capitalisation essential," he said. Khosru noted that in response to this structural shortfall, Bangladesh is architecting alternative financial channels and receiving positive responses from foreign countries and international organisations to create dedicated investment funds. Addressing structural bottlenecks in business and trade, he acknowledged that Bangladesh remains an "over-regulated" country where existing government regulations and regulatory systems are not functioning effectively.  

The price of gold has been increased in the local market, with the best quality or 22-carat gold now costing Tk 2,158 more per bhori (11.664 grams), effective from Saturday. According to the new price set by the Bangladesh Jewellers Association (Bajus), the price of 22-carat gold now stands at Tk 236,779 per bhori, including VAT, effective from 10 am. In a notification, Bajus said the decision to raise the price was taken in line with the rising price of tejabi gold (pure gold) in the local market. Notably, the price of the same category of gold was reduced by the same amount, Tk 2,158, just a day earlier, on Friday. The latest hike comes within 24 hours of that price cut, effectively reversing it. As per the new pricing, the price of 22-carat gold, including VAT, has been increased by Tk 2,158 to Tk 236,779 per bhori. The price of 21-carat gold has gone up by Tk 2,100 to Tk 226,165 per bhori. Similarly, the price of 18-carat gold has increased by Tk 1,808 to Tk 194,206 per bhori, while the traditional (sanatan) quality gold now costs Tk 158,630 per bhori, up by Tk 1,458. Despite the rise in gold prices, silver prices remain unchanged. The price of 22-carat silver, including VAT, has been set at Tk 5,074 per bhori. Meanwhile, the price of 21-carat silver stands at Tk 4,841 per bhori, 18-carat silver at Tk 4,199 per bhori, and traditional quality silver at Tk 3,159 per bhori.

The American Chamber of Commerce in Bangladesh (AmCham) has pledged to help facilitate and mobilise US$5 billion in investment over the next five years through its existing members and prospective US companies eyeing investment in Bangladesh. The commitment came when an AmCham Executive Committee, led by its President Syed Mohammad Kamal, met Prime Minister Tarique Rahman at the Secretariat on Tuesday. During the meeting, AmCham highlighted its long-standing role, since 1996, in strengthening Bangladesh-US economic and commercial ties and promoting a transparent, predictable, competitive and investment-friendly business environment. AmCham said its member companies have already invested more than US$5 billion in Bangladesh, with considerable scope for further investment. It also said the member companies collectively contribute more than 20% to the country’s tax exchequer, underscoring the significant contribution of the AmCham business community to Bangladesh’s economy. AmCham sought the Prime Minister’s leadership and the government’s partnership in creating an enabling environment to achieve the investment target, according to a media release. It acknowledged the government’s progress in improving Bangladesh’s investment and business climate, particularly its shift towards practical investment facilitation under the fiscal year 2026-27 reform package. The delegation welcomed measures such as time-bound approvals and licensing, implementation of the single window, digital tax and VAT administration, reduced compliance burdens, improved capital and profit repatriation processes, and simplified customs procedures. AmCham also stressed the need for greater long-term policy predictability in priority sectors to boost investor confidence and support long-term investment decisions. On digital governance, it welcomed the enactment of the Personal Data Protection Act (PDPA) and National Data Governance Act (NDGA), while emphasising effective implementation, AI readiness, cybersecurity resilience, regulatory clarity and continued public-private collaboration. The delegation also described the US-Bangladesh Reciprocal Trade Agreement framework as a strategic opportunity to deepen bilateral economic engagement and strengthen Bangladesh’s position in global value chains. AmCham called for moving beyond market access towards a broader strategic economic partnership covering technology, AI and digital innovation, cloud computing and cybersecurity, healthcare and life sciences, renewable energy, advanced manufacturing and financial-sector modernisation. It stressed that effective implementation of reforms and sustained competitiveness should remain priorities, including predictable tax and customs administration, reliable infrastructure and energy, and stronger institutionalised public-private collaboration. The chamber proposed establishing a Digital Economy Advisory Forum/Task Force and a Public-Private Competitiveness Council, with representation from the government, business community, foreign investors and AmCham, to identify bottlenecks, support implementation and strengthen investor confidence. It reaffirmed its readiness to work with the government not only as an advocate but also as a strategic partner by providing investor intelligence and practical business feedback, supporting policy collaboration, connecting Bangladesh with US corporate decision-makers, promoting the country’s reforms and investment opportunities internationally, and strengthening business-to-business engagement. The delegation also invited the Prime Minister to attend the opening ceremony of the 30th US Trade Show as the chief guest. The event will be jointly hosted by AmCham Bangladesh and the US Embassy in Bangladesh. During the meeting, the Prime Minister welcomed AmCham’s continued engagement and acknowledged its important role in Bangladesh’s economic development. The AmCham delegation included Ala Uddin Ahmad, Vice President, AmCham and CEO, MetLife Bangladesh; Reza Ur Rahman Mahmud, Treasurer, AmCham and Managing Director, Philip Morris Bangladesh Ltd; Mohammad Habibur Rahman Bhuiyan, EC Member and Country Manager, Excelerate Energy Bangladesh Limited; Mohammad Rashel Al Mamun, EC Member and Country Manager and Managing Director, NATco Bangladesh; Mohammad Sazzad Hossain, EC Member and General Manager, Bangladesh and Sri Lanka, Avery Dennison; Ataur Rahim Chowdhury, EC Member and CEO, ShopUp Limited; and Chowdhury Kaiser Mohammad Riyadh, Executive Director, AmCham.      

Bangladesh Bank on Tuesday granted a licence to NEO PSP Limited, a subsidiary of Banglalink Digital Communications Ltd, to operate as a Payment Service Provider (PSP) in Bangladesh. The licence was issued under the Payment and Settlement Systems Act, 2024, subject to the conditions set out in the central bank's letter dated August 11, 2026, according to a Bangladesh Bank notification. The licence will allow NEO PSP to offer payment-related services in accordance with applicable laws, regulations, and conditions prescribed by the central bank. With the addition of NEO PSP, 10 companies are now licensed to operate as payment service providers or e-wallet operators in Bangladesh. The other nine licensed PSPs are iPay Systems Ltd, D Money Bangladesh Ltd, Recursion FinTech Ltd, Green & Red Technologies Ltd, Progoti Systems Ltd, ABG Technologies Limited, Digital Payments Limited, Sheba Fintech Limited, and Shamadhan Services Limited.

Gold prices have risen again, with the Bangladesh Jewellers Association (BAJUS) increasing the price of 22-carat gold jewellery by Tk 1,108 per bhori (11.664 grams). BAJUS announced the revised prices on Tuesday, with the new rates coming into effect from 10am. Under the new rates, the price of one bhori of 22-carat gold jewellery, including VAT, has been set at Tk 235,146, up from Tk 234,038. BAJUS said the latest price hike was driven by an increase in the price of locally sourced Tejabi gold. The association had last raised the price of 22-carat gold by Tk 4,374 on August 8, just three days before the latest adjustment. The price of 21-carat gold jewellery has been increased by Tk 1,049 to Tk 224,590 per bhori, while 18-carat gold has become Tk 933 costlier at Tk 192,864 per bhori. Meanwhile, the price of sanatani gold jewellery has been raised by Tk 700 to Tk 157,522 per bhori. Alongside gold, BAJUS has also raised silver jewellery prices. The price of 22-carat silver has been increased by Tk 175 to Tk 5,074 per bhori, while 21-carat silver has risen by the same amount to Tk 4,841. The price of 18-carat silver has also gone up by Tk 175 to Tk 4,199 per bhori, while silver jewellery under the traditional system has increased by Tk 116 to Tk 3,159 per bhori.

Tour operators will now be able to sell foreign travel packages in Bangladeshi Taka to resident Bangladeshi citizens, under new directives issued by Bangladesh Bank. The central bank issued a circular on Sunday (August 9) permitting members of the Tour Operators Association of Bangladesh (TOAB) to collect package fees in local currency and remit the equivalent foreign currency to service providers abroad. Under the guidelines, TOAB members who have formal agreements or commercial understandings with foreign tour operators, hotels, or destination management companies will be eligible for this facility. Authorized Dealer (AD) banks have been permitted to send foreign currency overseas to pay for actual travel-related services, including accommodation and transportation. Under the new arrangement, up to US $3,000 US per traveler per calendar year can be remitted outside the regular annual travel quota. To avail of this facility, tour operators must maintain full transaction records linked to the traveler's passport number. Additionally, operators must obtain a formal declaration from the traveler confirming that the annual limit has not been exceeded through any other tour operator. The circular also retains provisions allowing for the remittance of amounts exceeding the $3,000 threshold under specified conditions.

Bangladesh Jewellers Association (BAJUS) on Saturday raised the price of gold by Tk 4,374 per bhori, setting the price of 22-carat gold, including VAT, at Tk 234,038 per bhori. BAJUS announced the new rate in a notice issued on Saturday morning, saying it will take effect from 10am the same day. The trade body said the price adjustment was made in view of the rising price of pure gold in the local market. According to the new rate, 21-carat gold will now cost Tk 223,541 per bhori, 18-carat gold Tk 191,931 per bhori, and traditional gold Tk 156,822 per bhori, all inclusive of VAT. BAJUS said the new prices will remain effective at all jewellery outlets across the country until further notice, though making charges will vary depending on the design of ornaments. Since VAT is already included in the selling price of gold and silver ornaments, it cannot be charged separately from customers, the notice added. Existing BAJUS rules on ornament exchange and purchase, excluding specified VAT, making charges and stone costs will remain unchanged. The previous price adjustment was made on the morning of August 7, when BAJUS cut the price of 22-carat gold by Tk 3,266 per bhori to Tk 229,664, including VAT. At that time, 21-carat gold was priced at Tk 219,342, 18-carat at Tk 188,374, and traditional gold at Tk 153,848 per bhori, effective from 10am that day. With Saturday's revision, the price of gold has been adjusted 100 times in the local market so far this year, with 49 increases, 50 decreases, and one VAT-related adjustment. While gold prices went up, the price of silver remained unchanged in the domestic market. Currently, 22-carat silver, including VAT, is being sold at Tk 4,899 per bhori. Silver of 21-carat, 18-carat and traditional grades are being sold at Tk 4,666, Tk 4,024 and Tk 3,033 per bhori, respectively. Silver prices have been adjusted 61 times so far this year, with 31 increases and 30 decreases, according to BAJUS.