Dhaka stocks extended their gains for a third consecutive session yesterday (20 January), as cautious investors remained active on both the buying and selling sides amid political uncertainty.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) gained 17 points to close at 5,109. The blue-chip DS30 index rose by 6 points to 1,970, while the Shariah-based DSES index added 7 points to finish at 1,031.

Turnover increased by 12.98% to Tk670 crore, up from Tk593 crore in the previous session. Of the 388 issues traded, 210 advanced, 109 declined and 69 remained unchanged.

According to market insiders, the stock market had become oversold after several months of decline, largely driven by political uncertainty. However, as the election draws closer, some of that uncertainty has begun to ease, encouraging a return of fresh investment.

They also noted that the market often shows a positive trend around mid-January, which has further supported investor activity. As a result, trading has picked up on both sides of the market.

Over the past year, political uncertainty and several decisions taken by the market regulator were not positively received by investors. Many investors left the market, while a large number of institutional and high-net-worth investors became largely inactive.

This prolonged weakness pushed down the prices of even fundamentally strong stocks.

Analysts said political uncertainty remains the most important factor shaping investor sentiment. As this uncertainty gradually eases, they expect the market to move in a more positive direction.

However, they added that since the situation has not fully stabilised, institutional and large investors are still staying on the sidelines, keeping trading volume below its potential level.

They believe that if policy stability is ensured and investor confidence returns, the capital market has strong potential to recover in the coming period.

Large-cap sectors showed mixed performance during the session. The telecommunication sector posted the highest gain, rising by 1.41%, followed by engineering, which advanced 0.87%. The fuel and power sector gained 0.40%, while pharmaceuticals rose by 0.39%.

On the downside, the non-bank financial institutions (NBFI) sector slipped by 0.02%, banking fell by 0.13%, and the food and allied sector recorded the biggest loss among large-cap sectors, declining by 0.45%. Block trades accounted for 4.8% of the day's total turnover.

The Chittagong Stock Exchange also closed higher. The CSCX index rose by 28 points to 8,819, while the CASPI index gained 44 points to close at 14,243, reflecting a positive mood across both major bourses.

Grameenphone has secured 10 megahertz of spectrum in the 700 MHz band, often called the “golden frequency” for its wide coverage and strong indoor reach, marking the first-ever allocation of the low-band frequency to a mobile operator in Bangladesh.

The spectrum was assigned at the base price, meaning the government will earn Tk 2,370 crore from the deal. The rate was set at Tk 237 crore per megahertz (MHz).

The allocation will run for 15 years, with payments spread over 10 instalments. If the allocation period ends earlier, the payable amount will be adjusted accordingly.

The approval came yesterday at a joint meeting of the Spectrum Auction Committee and the Spectrum Management Committee, said Major General (retd) Md Emdad ul Bari, Chairman of the Bangladesh Telecommunication Regulatory Commission (BTRC).

The BTRC had fixed January 21 as the auction date. With only one bidder in the race, the regulator proceeded under its single bidder allocation rules.

The move follows Robi Axiata’s decision to withdraw from the auction, citing a “mismatch” between the auction timing and its network priorities. Banglalink and state-owned Teletalk stayed away.

Despite the thin turnout, the regulator went ahead, saying that preparations had been underway since 2024. It also said Robi had shown interest in spectrum from another band, which could be taken up later.

Earlier this month, anticipating a lone bidder, the BTRC revised its auction rules. It cut the maximum spectrum cap for a single operator to 10 megahertz from 15, out of a total 25 MHz on offer.

The regulator said the change was meant to protect competition and keep room for other operators in the future.

The 700 MHz band is valued for its ability to cover large areas and penetrate buildings, making it well suited for rural connectivity and indoor coverage.

With the allocation, Bangladesh formally begins using the 700 MHz band for mobile broadband, a step long viewed as key to improving nationwide network reach and service quality.

Tanveer Mohammad, chief corporate affairs officer of Grameenphone, said, “We have received the acknowledgement letter from BTRC stating Grameenphone’s eligibility for the acquisition of the 700 MHz spectrum, on completion of all applicable regulatory requirements. This reinforces our commitment to strengthening network quality and delivering a superior, reliable experience for our customers across Bangladesh.”

He said, “We appreciate BTRC’s continued support in enabling a future-ready telco ecosystem. This will allow us to further enhance coverage, particularly in underserved and indoor environments, while improving network efficiency and resilience.”

“We look forward to responsibly utilising this spectrum to further elevate service quality and deliver secure, innovative digital services for our more than 85.6 million customers, reinforcing our role as a key enabler of Bangladesh’s digital progress,” he added.

Even so, a large part of the band remains out of reach. Twenty MHz is still locked in a long legal dispute between the BTRC and broadband service provider Always On Network.

The government's proposed ban on importing day-old broiler and layer chicks under the Poultry Development Policy 2026 has triggered growing concern among poultry producers, who fear the move could disrupt supply chains and push up prices if implemented without transitional safeguards.

The final draft of the policy has already been published on the government website for public feedback and is expected to be placed before the cabinet for approval soon, according to officials familiar with the process.

The policy marks a significant shift in how the state intends to manage the poultry sector, formally recognising it as a strategic food security industry.

While policymakers argue that the move will strengthen domestic capacity and reduce import dependence in the long run, industry stakeholders caution that the proposed import ban, if implemented abruptly, could destabilise supply chains and create fresh volatility in prices.

Bangladesh Poultry Industries Association President Mosharraf Hossain Chowdhury stressed that policy decisions must prioritise farmers. "Poultry is not just a business; it is central to food security. Any decision must ensure that farmers receive chicks on time and at fair prices," he told TBS.

Self-reliance and regulation

According to the draft, the Poultry Development Policy 2026 prioritises expanding local production capacity, improving disease control, strengthening biosecurity, ensuring quality feed and hatchery management, and gradually reducing reliance on imports. The policy also aims to bring greater discipline to the sector through stronger monitoring and enforcement.

One of its most debated provisions proposes a total ban on importing day-old broiler and layer chicks, a move the government says is intended to encourage investment in domestic breeder farms and hatcheries.

The policy also outlines plans to introduce a centralised database and traceability system for poultry disease control, allowing authorities to track production, movement, and biosecurity compliance across the supply chain.

In addition, the draft mandates strict action against low-quality hatcheries and farms, arguing that inconsistent quality and weak compliance have contributed to production inefficiencies, disease outbreaks, and farmer losses.

As the Poultry Development Policy 2026 moves towards cabinet approval, it reflects the government's ambition to build a self-reliant poultry sector through regulation, quality control, and domestic investment. Yet industry stakeholders argue that without careful sequencing and transitional safeguards, the policy risks undermining short-term supply stability.

The challenge now lies in aligning long-term policy goals with current market constraints, a balance that will ultimately determine whether the new framework strengthens food security or introduces new volatility into one of Bangladesh's most critical protein sectors

Government officials maintain that these measures are essential for building a more resilient and organised poultry industry. "The draft has been prepared to ensure overall sectoral development, while also protecting investors," said ABM Khaleduzzaman, director (production) at the Department of Livestock Services. "Once implemented, the policy will help the poultry sector become stronger and more sustainable."

Industry concerns over timing and capacity

Despite these assurances, poultry entrepreneurs argue that the policy underestimates current market realities. Bangladesh currently requires around 700-800 crore broiler and layer chicks annually, of which domestic hatcheries supply approximately 75-80%. The remaining 20-25 percent is met through imports, which industry players describe as a critical buffer during supply disruptions.

Stakeholders say they raised these concerns during multiple consultations held before finalising the draft, including meetings attended by the fisheries and livestock adviser. While participants reportedly urged caution in imposing an outright ban, citing food security and consumer interest, the provision remained in the final draft, prompting frustration among industry bodies.

A senior leader of the Bangladesh Poultry Industries Central Council warned that domestic capacity, though expanding, is not yet sufficient to absorb a sudden ban.

"If imports are stopped now, shortages will emerge. That will push up chick prices, reduce production, and eventually raise chicken and egg prices for consumers," he said.

Day-old chick production in Bangladesh is heavily concentrated among a handful of large corporate groups, including Kazi Farms Group, Aftab Group, Navana Group, Paragon Group, CP Bangladesh, Beximco Agro, and Diamond Hatchery. Industry estimates suggest these players collectively control around 70-80% of total domestic production.

However, much of this output is consumed internally through vertically integrated operations, contract farming arrangements, or group-linked farms. As a result, effective buffer capacity for the open market remains limited, leaving independent and small farmers vulnerable during supply shocks.

Price volatility and policy trade-offs

Data from poultry associations show that Bangladesh produces roughly 20 lakh broiler chicks per day, with production costs ranging between Tk28 and Tk30 per chick. Yet during shortages, farmers report paying Tk48-Tk50, eroding profitability and forcing many marginal producers out of the market.

Critics argue that maintaining limited import flexibility during crisis periods helps prevent price manipulation and protects competition. They also point to risks associated with breeder and grandparent stock imports, approvals for which can take six to eight months, potentially creating supply gaps if planning assumptions fail.

Experts have echoed calls for a phased or conditional approach. Professor Md Bahanur Rahman, dean of the Faculty of Veterinary Science at Bangladesh Agricultural University, said policymakers must realistically assess domestic capacity before enforcing a ban.

"We need to ensure not only production capability, but also a consistent, affordable supply to farmers," he noted.

Oil prices fell on Wednesday as an expected build-up of US crude inventories outweighed a temporary halt in output at two large fields in Kazakhstan and geopolitical pressure from US threats of tariffs over its bid to gain control of Greenland.

Brent futures fell 97 cents, or 1.5 percent, to $63.95 a barrel at 0745 GMT. The US West Texas Intermediate crude contract lost 78 cents, or 1.3 percent, to trade at $59.58 a barrel.

Both contracts closed nearly $1 a barrel, or 1.5 percent higher, in the previous session after Opec+ producer Kazakhstan halted output at the Tengiz and Korolev oilfields on Sunday due to power distribution issues. Strong China economic data was also positive.

Oil production at the two Kazakh fields could be halted for another seven to 10 days, three industry sources told Reuters.

The oil output halt at Tengiz, one of the world’s largest oil fields, and Korolev is temporary, and downward pressure from an expected rise in US crude inventories along with geopolitical tension will persist, IG market analyst Tony Sycamore said on Wednesday.

US President Donald Trump’s promise of fresh tariffs on European nations if no deal for the US to gain control of Greenland was reached is adding pressure to the oil markets because the tariffs risk slowing economic growth.

Trump said on Tuesday there was “no going back” on his goal to control Greenland.

US crude oil and gasoline stockpiles were expected to have risen last week, while distillate inventories likely fell, a preliminary Reuters poll showed on Tuesday.

Six analysts polled by Reuters estimated on average that crude inventories rose by about 1.7 million barrels in the week to January 16.

The American Petroleum Institute weekly inventory data is due at 4:30 p.m. EST (2130 GMT) on Wednesday, and the Energy Information Administration, the statistical arm of the US Department of Energy, at 12 p.m. EST (1700 GMT) on Thursday, both a day later due to a US federal holiday on Monday.

As winter grips northern China, 72-year-old farmer He Wenxiang runs his gas boiler only occasionally to warm the bedroom radiator.

While that inventory growth would be negative for oil prices, Gregory Brew, senior analyst with the Eurasia Group consultancy, said the potential for US-Iran tensions to re-escalate would help elevate oil prices.

Trump threatened to strike Iran over its violent crackdown on anti-government protests earlier this month.

Any attack on Iranian Supreme Leader Ayatollah Ali Khamenei would trigger a declaration of jihad, or holy war, the Iranian Students’ News Agency quoted Iran’s national security parliamentary commission as saying on Tuesday.

“While the US demurred from striking Iran immediately, tensions are likely to remain high as additional US military assets move to the Middle East and diplomacy to de-escalate tensions fails to make progress,” Brew said in a note.

Bangladesh Bank has revised its earlier decision on profit payments by Sammilito Islami Bank, allowing only individual depositors to receive a 4% return on their deposits for 2024 and 2025.

However, the benefit will not apply to institutional depositors. The decision was conveyed by the Bank Resolution Department in a letter sent yesterday to the administrators of five Islamic banks.

Depositors of 5 Islamic banks won't receive profit for 2024–2025: Governor

The letter instructs that profit at an annual rate of 4%, based on the bank rate, be paid on term and scheme-based deposits from 1 January 2024 to 28 December 2025.

The move reverses Bangladesh Bank's earlier position taken this month, when it ruled that depositors of the troubled banks would receive no profit for the two years due to weak financial conditions.

Last year, Bangladesh Bank finalised the Bank Resolution Scheme 2025 for the newly formed Sammilito Islami Bank PLC, created by merging the five crisis-hit Shariah-based banks. The scheme outlines specific steps and timelines for repaying depositors' funds as part of the resolution process.

The commerce ministry may backtrack on a plan to withdraw bonded facilities and impose duties on yarn imports amid a standoff between the government and garment exporters over the issue, industry insiders say.

After industry leaders flagged the potential blow to export competitiveness, officials are signalling a possible rethink, suggesting that the matter may now be examined by independent economists rather than enforced immediately.

This came after a meeting yesterday between top representatives of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) with Commerce Adviser SK Bashir Uddin.

"The adviser has understood our concerns. He will review all the data and re-evaluate the issue," said Faisal Samad, a BGMEA director.

BKMEA President Mohammad Hatem added, "We are more or less confident that the initiative will not go ahead. The issue will be analysed by three independent economists before a final decision is taken."

The dialogue, however, has not bridged all divides. Textile millers, represented by the Bangladesh Textile Mills Association (BTMA), met separately with the finance adviser without success.

"Despite understanding the situation, they are choosing not to acknowledge it," said BTMA President Showkat Aziz Russell.

Bangladesh imports around $2.4 billion of yarn annually, mostly from India, where incentives allow a cheaper supply than local mills can match. Spinning mill owners have struggled with underused capacity and mounting stockpiles, with nearly 100 mills partially or fully shut down.

Entrepreneurs in the sector – representing investments of about $23 billion – have sought urgent government intervention to survive.

Garment exporters warn that duties could increase knitwear production costs by 8-10%, translating into $2.4 billion in annual extra expenses, threatening the country's $28 billion knitwear export sector. Textile mill owners argue that open-costing agreements with buyers could absorb some of the increase, but exporters contend that higher prices risk lost contracts and market share

Retail broiler sellers in Bangladesh earn more than Tk7 per kg after covering operating costs, significantly higher than the profit margins earned by wholesalers, according to a Bangladesh Bank survey published today (21 January).

The survey found that retail sellers make an average profit of Tk12 per kg on broiler chicken, with a selling price of Tk137 per kg. In comparison, wholesalers earn an average profit of only Tk5 per kg at the same selling price.

The survey team visited 61 upazilas across 18 districts to examine five key agricultural commodities—rice, potatoes, onions, broiler chicken, and eggs between 15 June and 7 July 2025. Later, data was collected from large corporate companies, including Paragon, Nourish, ACI, and Akij, at their head offices in July and early August 2025.

The report details the cost and price dynamics, seasonal factors, and underlying reasons behind price changes. For example, the retail price of coarse rice rose to Tk61 per kg during the surveyed period, up from Tk55 last year, reflecting a 10.9% increase. The cost of production increased by 35%, driven by higher labor wages and greater use of fertilisers and pesticides.

Cultivated paddy land decreased by 0.31%, as some farmers shifted to more profitable crops such as potatoes, onions, maize, and mustard. Late paddy varieties, coupled with monsoon-related disruptions, also contributed to a 1.91% reduction in yield and higher labor costs.

Potato production increased due to expanded cultivation, but limited storage forced farmers to sell early at lower prices. Onions were surveyed in Pabna, Faridpur, Rajbari, and Rajshahi districts producing 55.1% of the country's onions. Among 115 respondents, including 66 farmers, 22 beparis, 16 aratdars, and 11 retailers in Dhaka, the average production cost was Tk33 per kg, with a selling price of Tk43 per kg, yielding a gross margin of roughly 30%.

Egg production was surveyed in Gazipur, Narshingdi, Cox's Bazar, and Chattogram, covering farmers, wholesalers, retailers, and consumers.

The survey findings were presented at a briefing at the Bangladesh Bank headquarters on Wednesday, attended by Chief Economist Akhtar Hossain, Spokesperson Arief Hossain Khan, and other senior officials. The report also offers an outlook on these commodities in the near future and provides policy recommendations based on the survey's findings.

The Bangladesh Bank plans to merge all nine state-owned banks into two large banks, citing the size of Bangladesh's economy and the need to improve governance and address long-standing mismanagement in the sector, Governor Ahsan H Mansur said on Tuesday.

Speaking at a discussion at Jagannath University in Dhaka, the governor said Bangladesh currently has 61 banks—far more than the economy requires.

"In Bangladesh's context, 10 to 15 banks are sufficient," he said, adding that the country needs a smaller number of large banks rather than many small ones. "Reducing the number of banks would make it easier to ensure good governance."

Later, speaking to The Business Standard, Mansur cited India as an example, noting that the neighbouring country has decided to reduce the number of state-owned banks to four despite having an economy more than 10 times larger than Bangladesh's.

He also pointed to Singapore-based DBS Bank, which has assets of around $1.2 trillion—equivalent to nearly Tk130 lakh crore—while the combined size of Bangladesh's entire banking sector stands at about Tk20 lakh crore.

"Although Singapore's economy is similar in size to Bangladesh's, its financial sector is 20 times larger," he said. "Despite that, Singapore has only a few banks, but all of them are very large."

State-owned banks to be consolidated

Bangladesh currently has nine state-owned banks: four commercial banks—Sonali, Agrani, Rupali and Janata; two development banks—BASIC and Bangladesh Development Bank; and three specialised banks—Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank and Probashi Kallyan Bank.

The governor revealed the state-bank merger plan as the central bank moves ahead with wider restructuring of the financial sector, following the merger of five private Islamic banks and the initiation of liquidation proceedings against nine non-bank financial institutions (NBFIs).

Mansur said mismanagement, irregularities, nepotism and weak governance had severely weakened the banking sector, resulting in losses of nearly Tk3 lakh crore, a significant portion of which may have been laundered abroad.

He alleged that $20–25 billion may have been siphoned off through nepotistic channels while speaking at the event titled "Banking Sector: Current Challenges and Future Prospects."

Economists back consolidation

Commenting on the plan, Zahid Hussain, former lead economist at the World Bank's Dhaka office, said the merger of state-owned banks was long overdue.

"There is no question about the desirability of consolidation," he said, adding that the Bangladesh Bank now needs a clear roadmap on how the mergers will be carried out.

Hussain, who is also a member of the banking sector reform task force formed after the regime change, said state-owned banks have failed to move away from a bureaucratic model and remain vulnerable to political influence.

"All the large loan scams we know of during the previous regime occurred in state-owned banks," he said.

Repeated government recapitalisation has placed a heavy burden on taxpayers, and bringing the banks under one umbrella is the right decision, he added.

He noted that Sonali Bank, the largest state-owned lender, plays a key role in treasury operations and social welfare programmes through its extensive branch network. "However, nine state-owned banks are unnecessary for delivering such programmes," he said.

Recent restructuring

The Bangladesh Bank has already merged five troubled Islamic banks – First Security Islami, Global Islami, Social Islami, Exim, and Bank – and formed a new bank named Sammilito Islami Bank.

The government is required to provide Tk20,000 crore for the five merged banks, of which Tk10,000 crore has already been disbursed.
The Bangladesh Bank also started to liquidate nine non-bank financial institutions for which the government will provide Tk5,000 crore to pay back individual depositors' money.

The nine NBFIs slated for liquidation are FAS Finance, Bangladesh Industrial Finance Company, Premier Leasing, Fareast Finance, GSP Finance, Prime Finance, Aviva Finance, People's Leasing, and International Leasing.

Meanwhile, the central bank also plans to create a dedicated "resolution fund" of up to Tk40,000 crore to rescue and restructure failing banks without relying on taxpayer-funded government bailouts.

Overbanking and weak balance sheets

World Bank data show that Bangladesh's GDP in 2023 stood at $323.28 billion (at constant 2015 prices), supported by 61 banks. By comparison, Pakistan—with a GDP of $400.17 billion—had 41 banks, while India, with a $3.2 trillion economy, operated with just 33 banks.

The data underline concerns that Bangladesh is significantly overbanked, while peer countries have expanded branch networks of large banks rather than multiplying the number of institutions.

Despite years of government support, the financial health of state-owned banks remains fragile. Between 2009 and 2024, more than Tk25,000 crore was injected into these banks to keep them afloat.

BASIC Bank's default loan ratio now exceeds 70%, while Janata Bank's stands at over 73%. As of December 2024, Agrani, Janata, BASIC and Rupali banks reported a combined capital shortfall of Tk31,000 crore, with the Bangladesh Bank rejecting their five-year recovery plans as "unrealistic".

Sonali Bank and Bangladesh Development Bank also faced a provisioning shortfall of Tk4,763 crore, although regulatory forbearance allowed them to report a modest capital surplus.

Gold prices in Bangladesh have surged past the Tk250,000 mark per bhori yesterday (21 January), hitting an all-time high in the domestic market.

The Bangladesh Jewellers Association (Bajus) raised the price of 22-carat gold by Tk8,339 per bhori (11.664 grams), setting the new rate at Tk252,467, the highest ever recorded in the country.

In a notification issued at night, Bajus said the price adjustment was made in view of a rise in the local market price of pure gold (tejabi gold).

The new prices will come into effect from Thursday.

According to the revised rates, the price of 21-carat gold has been fixed at Tk240,978 per bhori, 18-carat gold at Tk206,569 per bhori, while gold under the traditional method will sell at Tk169,653 per bhori.

In addition to the selling price, buyers will have to pay a mandatory 5% VAT set by the government and a minimum 6% making charge fixed by Bajus.

However, making charges may vary depending on the design and quality of jewellery.

Bajus last revised gold prices on 20 January, when it increased the rate of 22-carat gold by Tk5,249 per bhori to Tk244,128 – then the highest price in Bangladesh's history.

With the latest adjustment, gold prices have been revised 10 times in the domestic market so far in 2026. Of these, prices were increased on eight occasions and reduced twice.

Silver prices also rise

Alongside gold, silver prices have also been increased. BAJUS raised the price of 22-carat silver by Tk292 per bhori to Tk6,882, marking the highest silver price ever in the country.

Under the new rates, 21-carat silver will sell at Tk6,532 per bhori, 18-carat silver at Tk5,599 per bhori, while silver under the traditional method has been fixed at Tk4,199 per bhori.

So far this year, silver prices have been adjusted seven times in the local market, with prices increased five times and reduced twice.

US President Donald Trump abruptly stepped back on Wednesday from threats to impose tariffs as leverage to seize Greenland, ruled out the use of force and suggested a deal was in sight to end a dispute over the Danish territory that risked the deepest rupture in transatlantic relations in decades.

Traveling in Davos, Switzerland, Trump backed down, for now, from weeks of rhetoric that shook the NATO alliance and risked a new global trade war. Trump had threatened at the weekend to impose rising tariffs on eight European countries' US-bound exports.

But after meeting with NATO Secretary General Mark Rutte at the Swiss Alpine resort, Trump said Western Arctic allies could forge a new deal over the strategic island territory of 57,000 people that satisfies his desire for a "Golden Dome" missile-defense system and access to critical minerals while blocking Russia and China's ambitions in the Arctic.

"It's a deal that everybody's very happy with," Trump told reporters. "It's a long-term deal. It's the ultimate long-term deal. It puts everybody in a really good position, especially as it pertains to security and to minerals."

"It's a deal that's forever," he added.

Rutte later said the issue of whether Greenland will remain with Denmark did not come up in his talks with Trump.

"That issue did not come up anymore in my conversations tonight with the president," Rutte said in an interview on Fox News' "Special Report with Bret Baier" show.

"He (Trump) is very much focused on what do we need to do to make sure that that huge Arctic region - where change is taking place at the moment, where the Chinese and the Russians are more and more active - how we can protect it."

Scolding, dismissive threats

Trump earlier in the day had delivered more than an hour of scolding and dismissive threats aimed at countries already unnerved by his push to seize territory from a longtime US NATO ally.

European diplomats said the president's sudden shift in tone doesn't resolve the dispute but helps defuse an open rift between allies as they work to sort out their differences in private.

It remained unclear what kind of agreement could meet Trump's demands for outright "ownership" of a territory that its residents and leaders have said is not for sale.

"Negotiations between Denmark, Greenland, and the United States will go forward aimed at ensuring that Russia and China never gain a foothold - economically or militarily - in Greenland," a NATO spokesperson said.

No date or venue was provided for such negotiations. Trump said he had tasked Vice President JD Vance, Secretary of State Marco Rubio and envoy Steve Witkoff to take part in further discussions.

"What happens in Greenland is of absolutely no consequence to us," said Russian President Vladimir Putin, quoted by Russian news agencies speaking to the country's National Security Council.

Respect for Danish sovereignty, Greenland crucial: Denmark

Trump said on his Truth Social platform that the US and NATO had "formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region," and that "based upon this understanding, I will not be imposing the Tariffs that were scheduled to go into effect on 1 February."

It was the latest in a series of reversals of major policies or threats by Trump ahead of deadlines he has imposed during his second term in office.

Denmark said the issue should be handled through private diplomacy rather than on social media.

"What is crucial for us is that we get to end this with respect for the integrity and sovereignty of the kingdom (of Denmark) and the right of the Greenlandic people to self-determination," Denmark's Foreign Minister Lars Lokke Rasmussen told public broadcaster DR.

Rasmussen said he had spoken with Rutte but declined to provide details on what had been agreed.

Greenland's government did not reply to a request for comment.

Earlier in the day, the Republican US president acknowledged financial markets' discomfort with his threats and ruled out force in a speech to global elites at the World Economic Forum annual meeting.

"People thought I would use force, but I don't have to use force," Trump said. "I don't want to use force. I won't use force."

The change in posture sparked buying on Wall Street. The S&P 500 index posted its biggest one-day percentage gain in two months, adding 1.16% for the day. Trump's more hawkish comments on Greenland on Tuesday helped deliver the sharpest equities selloff in three months.

Trump dominates Davos agenda

Trump's Greenland comments dominated a whirlwind trip to Davos. Emboldened after a year in office that saw major institutions and allies bend to his will, Trump chastised Europeans on their soil on issues ranging from wind power and the environment to immigration and geopolitics.

He cast himself as a defender of Western values. "We want strong allies, not seriously weakened ones," Trump said. "I love Europe and I want to see Europe go good, but it's not heading in the right direction."

While he took the threat of force off the table for Greenland, Trump bragged about US military might, citing recent operations such as the shock ousting of Venezuela's Nicolas Maduro earlier this month.

Calling Denmark "ungrateful," the Republican US president played down the territorial dispute as a "small ask" over a "piece of ice" and said an acquisition would be no threat to the NATO alliance, which includes Denmark and the United States.

"No nation or group of nations is in any position to be able to secure Greenland other than the United States," said Trump, who four times during the speech mistakenly referred to Greenland as Iceland, another NATO member state.

"You can say yes, and we will be very appreciative, or you can say no, and we will remember."

Trump also used his speech to settle scores on other grievances. He rounded on Britain over extracting insufficient oil from the North Sea, Switzerland over its trade surplus in goods with the US, France over its pharmaceutical policy, Canada for what he saw as its ingratitude and NATO for its unwillingness to conform to US interests.

His remarks drew uncomfortable looks and light laughter from the audience in Davos, but most were silent.

His speech did notably less to address Trump's top domestic political challenge, the low marks voters give his handling of cost-of-living issues.

Though his aides had previewed an economic message, Trump was nearly an hour into the speech before he raised his newer initiatives to lower housing costs.

Sources familiar with the situation have previously told Reuters that Trump's push on Greenland is related to a legacy-building desire to expand the territory of the United States in the biggest way since Alaska and Hawaii became states in 1959.

On Thursday, Trump was expected to meet Ukrainian President Volodymyr Zelenskiy. As part of the trip, Trump was working to build support from dozens of world leaders to join his Board of Peace initiative aimed at resolving global conflicts, even as diplomats say it could harm the

Bangladesh's Summit Group is stepping into the country's data centre market while continuing to pursue its growing LNG projects, as the nation's demand for liquefied natural gas is expected to remain strong.

In interviews with Platts, part of S&P Global Energy, Summit Group Chairman Muhammed Aziz Khan discussed the company's plans to leverage its existing power capacity and infrastructure to expand into data centres and LNG.

"Bangladesh and Summit are uniquely positioned with excess electricity capacity for the next few years. We would like to be a pioneer in this global AI race," Khan said.

He noted that the country's recently enacted Personal Data Protection Ordinance, 2025, is also expected to stimulate demand for domestic data centres.

The group intends to utilise its subsidiary, Summit Technopolis Hi Tech Park, or vacant land alongside its power plants and the river, to build its first large-scale facility in Dhaka, Khan said.

"Data centres are challenged primarily by the lack of electricity. We can, with the requisite government permissions, give electricity quickly," he added.

Summit currently has approximately 350 megawatts of capacity that could be dedicated to data centres, positioning it as a hyperscaler, according to Khan. The company is also laying optical fibres from Bangladesh to Singapore, although the work has experienced slight delays due to regulatory hurdles.

"However, we are hopeful of overcoming those challenges. Subject to government permissions, Summit can build its first data centre in about 18 months," Khan said.

He expressed openness to strategic partners who bring marketing expertise for its data centres. The company is also exploring opportunities to import green electricity from countries such as Indonesia and Malaysia.

LNG impetus

"I continue to believe that LNG and its related infrastructure are essential for the country's growth," Khan said.

He added that the newly elected government, following the upcoming national elections expected in February, will likely implement more structural reforms for Bangladesh's infrastructure and development over a longer time horizon.

Bangladesh's LNG imports are projected to reach 7.2 million metric tons per annum in 2026, up from an estimated 6.8 million mt/year in 2025, according to Khan. The country's LNG imports could climb to 15 million mt/year in the coming years alongside 6%-7% GDP growth, he said.

Khan highlighted Bangladesh's trade advantages despite international challenges. "The US imposed a 20% reciprocal tariff on many Bangladeshi goods last year. However, Bangladesh's lower tariffs compared to some neighbouring countries give it an edge over other competitors."

He added that the foreign currency situation is expected to continue improving with the country's economic growth.

Domestic gas production in Bangladesh peaked at 2.6 Bcf/d in 2018 but has steadily declined, averaging a 5% annual reduction to 2 Bcf/d by 2024, according to S&P Global Energy CERA analysts in a December 2025 report. In H1 2025, production fell further to 1.8 Bcf/d, a 7% decrease from the total for 2024. The analysts noted that limited exploration and production contributed to the decline, partially driving the anticipated growth in LNG imports.

Khan also commented on international LNG prices, saying they are expected to be volatile in the coming months.

"Prices are set to rise substantially in the short-medium run if tensions escalate in Iran. However, in the longer term, prices will be pressured by supply waves from the US and Qatar as well as by optimism about global geopolitics," he said.

Platts assessed the March JKM, the benchmark price for LNG cargoes delivered to Northeast Asia, at $10.334/MMBtu on 16 January, up 3.5% from 15 January.

Growth pathway

Summit Group had planned to build Bangladesh's first onshore LNG terminal at Matarbari Island in the Bay of Bengal on a build, own, operate, and transfer basis. However, the project has been delayed due to the abolition of the Quick Enhancement of Electricity and Energy Supply (Special Provisions) Act, 2010, which was repealed by the government in 2024, Khan said.

The onshore terminal could proceed either through an international tender or a government-to-government contract.

"So, if an international tender is launched, we will participate in it. But if it is a G2G contract, then we will only be able to receive services from the terminal owned by the government of Bangladesh," Khan said.

Bangladesh is also considering converting around 30,000 Mcf/d of unutilised natural gas from the gas-rich Bhola island into LNG and delivering it to gas-starved industries on the mainland. When asked whether Summit would participate, Khan said that doing so would require a transportation facility rather than infrastructure for gas use, and that Summit was not keen to pursue it.

The Bangladesh Bank plans to create a dedicated "resolution fund" of up to Tk40,000 crore to rescue and restructure failing banks without relying on taxpayer-funded government bailouts.

Banks will have to contribute an annual premium of up to 0.25% or 25 paisa per Tk100 of their deposits, compared to the current 0.07% charged for the deposit insurance protection fund. Over time, the fund is expected to accumulate between Tk30,000 crore and Tk40,000 crore, enabling the central bank to intervene independently when banks face serious financial trouble.

In an interview with The Business Standard, Bangladesh Bank Governor Ahsan H Mansur said the initiative is inspired by the European Central Bank's resolution framework, under which banks deposit a portion of their deposits (approximately 1%) into a separate fund specifically for bank resolution.

"Bank resolution is a continuous process. That is why we have created a separate Bank Resolution Department," he said, explaining that the department continuously monitors banks and financial institutions, flags early signs of weakness, and intervenes when necessary through restructuring, mergers, or orderly liquidation.

The governor noted that five banks are currently under resolution, a process made possible only because the government provided around Tk20,000 crore in support.

Alongside the move, the Bangladesh Bank has decided to liquidate nine non-bank financial institutions (NBFIs), the governor said. As these entities are not covered by the deposit insurance protection fund, the government will provide Tk5,000 crore to repay individual depositors, he said.

The governor explained how the resolution fund will be built gradually. "If we raise the premium from 7 paisa per Tk100 of deposits to around 25 paisa, we can mobilise nearly Tk30,000 crore within five years. Once the fund becomes strong, provisioning requirements can be reduced."

Under the amended deposit insurance ordinance 2025, insured banks are required to deposit a premium of 0.07% per annum on their deposits. The new law states that the Bangladesh Bank will set the premium from time to time based on the bank's risk level and the size of deposits.

At the same time, banks and financial institutions will face penalty interest at the bank rate if they fail to pay the premium on time. The Bangladesh Bank will prevent the banks and financial institutions from accepting deposits that fail to pay the premium twice in a row.

How resolution fund to be operated

According to the Bank Resolution Ordinance, 2025, a bank restructuring and resolution fund will be established in order to achieve the objective of the resolution and effective implementation of the resolution measures.

It states that the Bank Restructuring and Resolution Fund will have a prudent and safe investment strategy and will invest the amounts held in the fund in obligations of the government.

The ordinance mentions that the Bangladesh Bank shall prescribe the rules governing such fund, including the power to manage, administer, and supervise the Bank Restructuring and Resolution Fund; formulate policies in relation to the general administration of the Bank Restructuring and Resolution Fund; and contribute to the financing of resolutions of scheduled banks from the Bank Restructuring and Resolution Fund.

What experts say

Experts have expressed mixed reactions to its long-term impact on banking discipline.

Muhammad A (Rumee) Ali, former deputy governor of Bangladesh Bank, cautioned that the fund could end up subsidising poor governance and weak risk management, as well-run banks would effectively support weaker ones.

However, Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue, welcomed the move, saying it would reduce pressure on taxpayers. He noted that similar mechanisms were introduced in Europe and the United States after the 2007 global financial crisis.

"Such a fund discourages risky lending and encourages responsible behaviour, even though some cost may be passed on to depositors," Mustafizur said.

Syed Mahbubur Rahman, managing director of Mutual Trust Bank, described the plan as aligned with global norms but warned that its success would depend on broader reforms. "With high non-performing loans, weak enforcement and political interference, the fund risks becoming symbolic unless governance, transparency and supervision are strengthened," he said.

Mahbubur added that the proposed levy is far lower than the ECB's 1% benchmark, raising concerns about its adequacy in a crisis. "Still, if transparently managed and scaled over time, it could be a solid starting point for building financial resilience."

Sohail RK Hussain, managing director of Bank Asia, also termed the initiative a positive and necessary step. "A resolution fund based on global best practices will strengthen financial stability and reduce reliance on taxpayer support," he said, stressing the need for gradual, transparent and risk-based implementation alongside deeper banking sector reforms.

"The proposed 0.25% annual cap, including insurance premium, is reasonable, especially considering the challenges the industry is facing," Sohail said.

He emphasised that the fund will be established on a transparent and risk-based basis.

"However, this should go hand in hand with the banking sector reform proposal, addressing governance failures of the past," the Bank Asia MD added.

All three major Wall Street indexes ended Tuesday with their biggest one-day drops in three months, in a broad selloff triggered by concerns ‌that fresh tariff threats from President Donald Trump against Europe could signal renewed market volatility.

The risk-off trade was pervasive, helping vault gold to fresh record highs, and pushing up debt costs with US Treasuries wobbling under renewed selling pressure. Bitcoin, which can find favor when traditional markets waver, fell more than 3%.

All three US equity benchmarks registered their worst one-day performance since 10 October, with both the S&P 500 and Nasdaq Composite slipping below their 50-day moving averages.

The S&P 500 lost 143.15 points, or 2.06%, to ‌end at 6,796.86 points, while the Nasdaq Composite gave up 561.07 points, or 2.39%, to 22,954.32. The Dow Jones Industrial Average fell 870.74 points, or 1.76%, to 48,488.59.

Uncertainty rises

Tuesday was the first opportunity for US investors to act on Trump's weekend comments, given the market holiday for Martin Luther King, Jr. Day.

This included Trump saying additional 10% import tariffs would take effect on 1 February on goods from Denmark, Norway, Sweden, France, Germany, ‌the Netherlands, Finland and Great Britain — all already subject to US tariffs.

The tariffs would increase to 25% on 1 June and continue until a deal was reached for the US to purchase Greenland, Trump wrote in a post on Truth Social. Leaders of Greenland, an autonomous territory of Denmark, and Denmark have insisted the island is not for sale.

The reinjection of ⁠tariff threats into global markets harkens back to April's "Liberation Day," when Trump's levies on global trade partners pushed the S&P 500 to near bear market territory.

The ‍CBOE Volatility Index, also known as Wall Street's fear gauge, spiked to 20.09 points, its highest close since 24 November.

Trading volumes were also higher: around 20.6 billion shares changed ‌hands on ‌US exchanges on Tuesday, up from the 17.01 billion average for the last 20 trading days.

While investor sentiment was frayed on Tuesday, the question being asked is whether Greenland represents a knee-jerk selloff, or something that will have longer-term implications for markets.

Jamie Cox, managing partner at Harris Financial Group, said he was not seeing indications investors were fleeing.

"I'm not at the point yet where I'm willing to say what is happening with Greenland, and the resurgence of the tariff threat back ⁠and forth, is going to precipitate a ⁠correction in the equities markets," he said, adding he would be surprised if there was a 3% to 5% drop this week.

Bond markets spillover

A potentially more significant action, in Cox's eyes, would be whether Japanese authorities intervene in financial markets.

Japanese government bonds plunged on Tuesday, sending yields to record highs, while Tokyo stocks and the yen also fell after Prime Minister Sanae Takaichi's call for a ‍snap election shook confidence in the country's fiscal health.

The moves helped push the cost of longer-term European government bonds higher, while a selloff in US Treasuries was more pronounced on the long end of the curve.

Despite tariff talk, and notable bond movements, the US economy remains in a strong position.

Investors are due a host of fresh data this week on the state of the US economy, including the third-quarter US GDP update, January PMI readings and the Personal Consumption Expenditures ‍report, which is the Federal Reserve's preferred inflation gauge.

Earnings season is also kicking into higher gear, with several industry bellwethers set to report their quarterly earnings this week.

Among them was Netflix, which closed 0.8% lower before reporting earnings after the bell.

President Donald Trump's return to office has triggered an escalating transatlantic trade dispute, centred on new US tariffs linked to Greenland and Washington's proposal to take control of the territory, according to the sources.

After resuming the presidency, Trump imposed a 10% "Greenland tariff" on imports from several European countries, including the Nordic states, Germany, France, the Netherlands and Britain. The move was framed as retaliation for the deployment of small numbers of European troops to Greenland, says the Economist.

The new levy comes on top of existing US tariffs of 15% on European Union goods and 10% on British products. Trump has also threatened to raise the Greenland-related tariffs to 25% by the summer of 2026 if European governments do not agree to a US takeover of Greenland, the sources said.

Economists estimate that the immediate macroeconomic impact of the 10% tariffs would be limited, reducing EU output by around 0.04% and US output by about 0.02%. Research cited by the sources indicates that American importers and consumers have borne roughly 96% of the cost of existing tariffs, with prices charged by European firms largely unchanged.

The effects have been uneven across sectors. Imports of industrial equipment from Europe fell by 4% in late 2025, while imports of vehicles, including cars, boats and aircraft, dropped by 32%. Luxury carmakers have been among the hardest hit, with Porsche's operating profits falling by 90% in 2025. Pharmaceutical and healthcare groups such as GSK and Novo Nordisk are also considered highly exposed, as they generate about half of their revenues in the US while maintaining a relatively smaller cost base there.

In response, the EU has prepared a range of potential countermeasures. These include more than €90 billion in retaliatory tariffs on US goods, targeting products made in Republican-leaning districts or items with readily available European substitutes.

European officials have also discussed the use of strategic export controls, such as restricting scrap metal sales to US smelters or limiting exports of products where Europe holds a near-monopoly. These include advanced lithography machines used in chipmaking, produced by ASML, as well as Airbus aircraft and certain military helicopters.

Additional options under consideration include tighter regulation of US technology companies operating in Europe, potentially excluding them from government procurement, and measures that could limit access for American financial firms to European markets.

Despite these tools, the sources suggest the United States would retain greater leverage in a prolonged economic confrontation. Washington could restrict European access to US-based cloud services, use the dominance of the dollar and the US financial system as pressure points, or impose export controls on military equipment and intelligence sharing, including support related to Ukraine.

The sources also point to a potential soft-power dimension. The United States is set to co-host the 2026 FIFA World Cup, where European and South American teams are expected to be among the tournament's main attractions. A European boycott, while unlikely, would carry limited economic cost for Europe but could deal a symbolic blow to the US administration, the sources said.

Gold climbed to a fresh record high today (20 January), scaling the unprecedented $4,700 ‌an ounce milestone as escalating geopolitical tensions boosted safe-haven demand, while silver also broke above $95 for the first time.

Spot gold gained 1.5% to $4,737.18 per ounce by 09:49am ET (14:49 GMT), after reaching a record high of $4,750.49 earlier in the day. US gold futures for February delivery climbed ‌3.2% to $4,742.70/oz. "Gold has surged deeper into uncharted territory as investors hedge ​against rising political risk," said Fawad Razaqzada, market analyst at City Index and FOREX.com.

"A softer dollar is providing an additional tailwind for precious metals, reinforcing gold's rally at a ‍time when confidence in US assets appears to be wobbling."

Wall Street's main indexes opened sharply lower today (20 January), as investors were spooked by renewed tariff threats from President Donald Trump against Europe over control of ⁠Greenland.

The remarks have heightened tensions ahead of Trump's expected meeting with global business leaders ‍in Davos, Switzerland, on Wednesday.

The US dollar was set for its largest daily fall in over a month, ‌making ‌greenback-priced gold more affordable for overseas buyers.

Gold, seen as a safe store of value during economic and political instability, soared 64% in 2025 and has added another 9.5% since the start of the year. The metal's rally has also been supported by expectations of ⁠US interest rate cuts, ⁠which reduce the opportunity ​cost of holding non-yielding bullion.

Markets are pricing in two rate cuts of 25-basis-points from mid-2026, while focus intensified after US Treasury Secretary Scott Bessent said Trump could name a new Federal Reserve chair as ‍early as next week.

"$4,800 and $4,900 are the next obvious reference points (for gold), with the key $5,000 handle standing out as the longer-term psychological target," Razaqzada added.

Spot silver slipped 0.3% to $94.37/oz, after hitting a record $95.87 earlier. ​The white metal added about 147% in 2025 ‍and has gained more than 34% since the start of 2026. Elsewhere, spot platinum added 2.8% to $2,440.94/oz, while palladium was ​down 0.7% at $1,828.39.

Oil prices were steady on Tuesday as investors monitored US President Donald Trump’s threats of higher tariffs on European states over his drive to acquire Greenland, while firmer global economic growth expectations and better-than-expected economic data from China gave a floor to prices.

Brent futures for March shed ‌11 cents, or 0.17 percent, at $63.83 a barrel at 0918 GMT, while ​the US West Texas Intermediate crude contract for February was down 49 cents, or 0.8 percent, at $58.95.

Trump’s tariff threats over Greenland will not have an immediate impact on the ‍oil balance, said PVM analyst Tamas Varga, adding that prices gained support from an upward revision of this year’s global economic growth estimate by the International Monetary Fund and stronger diesel prices.

Fears of a renewed trade war escalated over the weekend after Trump said he would impose additional ‍10 percent levies from February 1 on goods imported from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland ‌and ‌Britain, rising to 25 percent on June 1 if no deal on Greenland was reached.

CHINA DATA SUPPORTS OIL

The oil market is also finding some support from better-than-expected fourth-quarter Chinese gross domestic product data released on Monday, said IG market analyst Tony Sycamore.

“This resilience in the world’s top oil importer provided a ​lift to demand sentiment,” he said.

China’s economy grew 5.0 percent last year, the data showed, while China’s in 2025 also climbed, edging up 4.1 percent year-on-year, while crude oil output grew 1.5 percent, data from ‍the world’s top oil importer showed on Monday.

Markets are also keeping a close eye on Venezuela’s oil sector after Trump said the US would run the industry after its capture of Nicolas Maduro.

Vitol offered Venezuelan ​oil to Chinese buyers at discounts of about $5 ‍per barrel to ICE Brent for April delivery, multiple trade sources said.

Gold surged past the $4,700 an ounce mark for the first time on Tuesday, and silver hovered just below a fresh record high, as global tensions sparked yet another rush to safety.

Spot gold gained 1.3 percent to $4,727.99 per ounce by 0910 GMT, having hit an all-time high of $4,731.34, while silver rose 0.7 percent to $95.34 an ounce, after hitting a record high of $95.488 earlier in the session.

US gold futures for February delivery climbed 3 percent to $4,734.10 per ounce.

US President Donald Trump threatened to impose increasing tariffs from February 1 on eight European countries until the US is allowed to buy Greenland, fuelling fears of a renewed trade war.

“Growth concerns driven by threats of additional tariffs and the desire of Trump to have lower US interest rates are the drivers pushing gold to a new record high,” said UBS analyst Giovanni Staunovo.

Gold has climbed 9.5 percent in just 20 days of this year and over 70 percent since Trump’s second term began a year ago. Geopolitical tensions have been at the forefront of the recent record rally, with expectations of monetary policy easing also playing a significant role. Strong central bank buying and ETF inflows have also contributed to the unprecedented rise.

Instability in policy and politics drives investors to store value in traditional safe havens like gold, while lower interest rates limit the downside of holding non-yielding assets.

Investors are also awaiting a decision on a Supreme Court case that could determine whether the president can dismiss Federal Reserve governors at will, concerning Trump’s attempts to fire Fed Governor Lisa Cook.

“We still see further upside for the yellow metal, targeting a price of $5,000/oz,” Staunovo said.

The growing threat of a renewed trade war between the United States and the European Union is stoking fears among Bangladeshi garment exporters that retaliatory tariffs could trigger global supply chain volatility and suppress consumer demand in their most vital markets.

Industry insiders say any escalation of tariff measures between the two economic blocs could trigger fresh inflation in the US and Europe, reducing consumer spending and, in turn, demand for Bangladeshi apparel. Such a scenario could further strain exports.

Data show that Bangladesh's overall exports, including readymade garments, have been declining for five consecutive months, while prices in the European market have also softened during the period.

Representatives of foreign buyers sourcing from Bangladesh, however, believe the immediate impact of any new tariff measures would be limited, although prolonged trade tensions could create uncertainty over the longer term.

According to a report by The Guardian, the EU's top diplomats met for crisis talks on Sunday (18 January) and discussed reviving a plan to levy tariffs on €93 billion ($108 billion) of US goods, which was suspended after last year's trade deal with Trump.

In a post on Saturday on Truth Social, US President Donald Trump said he would impose a 10% tariff on Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland beginning 1 February.

Media reports also said Trump threatens a 25% tariff on European allies until Denmark sells Greenland to the US.

Experts warn that such tariff disputes could destabilise not only transatlantic trade but the wider global trading system.

MA Rahim Feroz, vice-chairman of DBL Group – one of Bangladesh's largest apparel exporters with annual turnover exceeding $1 billion – told TBS that higher tariffs in Europe or the US would inevitably lead to inflation.

"If inflation rises, consumers will buy less, which will put significant pressure on us and negatively affect Bangladesh's exports to those markets," he said.

Echoing Feroz, Md Shehab Udduza Chowdhury, vice president of the Bangladesh Garment Manufacturers and Exporters Association, warned that imports could be affected if trade tensions intensify.

In 2025, Bangladesh exported garments worth $38.82 billion globally, with nearly 80% destined for the European Union, the US and the UK.

Exporters say Bangladesh has already felt the impact of reciprocal tariffs imposed by the Trump administration, with shipments to both the US and Europe coming under strain. They add that garment prices in the European market have declined as a result.

Feroz noted that after the US imposed higher tariffs on China and India than on Bangladesh, the two larger exporters stepped up efforts to sell more in Europe, intensifying competition and forcing Bangladeshi exporters to offer price discounts.

An analysis of Eurostat data by the Bangladesh Apparel Exchange shows that the average price of Bangladeshi apparel exported to Europe fell by 2.06% between January and September 2025. Prices of apparel from other major exporting countries also declined during the same period.

Trade experts see little upside for Bangladesh if a trade war erupts between Europe and the US.

Mostafa Abid Khan, an international trade expert and former member of the Bangladesh Trade and Tariff Commission, said he does not foresee any major short-term disruption to Bangladesh's exports or imports.

Before the latest tariff announcements, US tariffs on EU goods ranged from zero to 15%, while UK exports to the US faced a 10% tariff. US goods entering the UK are subject to a 6% tariff, and EU data show that a significant number of US products have enjoyed duty-free access to the EU since August.

Buyers remain unconcerned

Despite exporters' worries, foreign buyers say their sourcing from Bangladesh remains unaffected.

A senior official at the Dhaka office of a Sweden-based brand, speaking on condition of anonymity, said potential EU-US tariffs are unlikely to hurt Bangladeshi exports.

"We source around $250 million worth of products from Bangladesh each year, and our order flow remains normal – if anything, it may increase in the future," he said.

Similarly, the country manager of a Germany-based sportswear brand said the tariffs under discussion are selective and unlikely to affect Bangladesh directly. "However, it is still too early to say what the long-term consequences might be if such a situation persists."

Chinese capital Beijing's GDP exceeded 5.207 trillion yuan (about 743.79 billion U.S. dollars) in 2025, up 5.4 per cent year on year, surpassing the 5 trillion yuan mark for the first time, according to the municipal statistics bureau.

The dollar headed for its largest daily fall in over a month on Tuesday, after threats from the White House to Europe over the future of Greenland triggered a broad selloff across US stocks and government bonds, and drove the euro and the pound higher.

The dollar index , which measures the US currency's performance against a basket of six others, fell as much as 0.6 percent - marking its biggest one-day drop since mid-December - as investors worried about exposure to US markets.

On Monday, US President Donald Trump's renewed tariff threats against European allies triggered a repeat of the so-called "Sell America" trade that emerged after last year's "Liberation Day" tariff announcement in April, with stocks, Treasury bonds and the dollar all declining.

US markets will return on Tuesday following a public holiday for Martin Luther King Jr. Day.

Investors were dumping dollar assets on "fears of prolonged uncertainty, strained alliances, a loss of confidence in US leadership, potential retaliation and an acceleration of de-dollarisation trends," Tony Sycamore, market analyst at IG in Sydney, said.

"While there are hopes the US administration may soon de-escalate these threats, as it has with prior tariff announcements, it is clear that securing Greenland remains a core national security objective for the current administration," he added.

The euro rose 0.6 percent to $1.1719, while the pound gained 0.35 percent to trade at $1.3474. Sterling got a minor additional lift from UK labour market data that showed unemployment remained at a five-year high, but also offered positive signs such as vacancy numbers plateauing.

In terms of investor demand for euros, the "Sell America" effect could be short-lived, Barclays strategist Lefteris Farmakis suggested.
"Tariff threats are a marginal negative for the dollar in the near-term given long positions and still-low hedge ratios from a historical perspective. That said, major escalation with NATO spill-overs is a much bigger problem for the euro than Liberation Day," he said.