Bangladesh Bank has purchased nearly $6 billion from the foreign exchange market so far in the fiscal year 2025-26, reflecting continued efforts to manage liquidity and stabilise the exchange rate.

The central bank bought $100 million from six commercial banks yesterday at a cut-off rate of Tk 122.75 per dollar. Total purchases in the current fiscal year (July to May 18) stood at $5.98 billion, according to the latest data from the central bank.

Bangladesh Bank has been buying US dollars since the beginning of this fiscal year amid improved inflows and easing pressure on the foreign exchange market.

War puts forex market under strain: BB

War puts forex market under strain: BB
Between FY21 and FY25, the BB sold more than $25 billion from its foreign exchange reserves to meet import payments for fuel, fertiliser and food.

However, it resumed purchasing dollars at the beginning of the current fiscal year as supply increased on the back of higher export earnings and remittance inflows.

Building foreign exchange reserves is another reason behind the central bank’s continued dollar-buying spree.

According to Bangladesh Bank calculations, gross foreign exchange reserves stood at $34.31 billion as of May 14 this year, up from $25.47 billion during the same period last year.

However, reserves reached $29.65 billion as per the IMF’s BPM6 methodology, up from $20.09 billion last year.

The interbank exchange rate was Tk 122.75 per US dollar today.

Economic experts criticised the central bank's move to buy dollars amid high inflation in Bangladesh, arguing that allowing the dollar rate to fall further could help contain inflation.

Bangladesh Bank today (18 May) purchased $100 million from six commercial banks through auctions.

The dollars were purchased at Tk122.75 per dollar, Bangladesh Bank Executive Director and Spokesperson Arief Hossain Khan confirmed.

With this latest purchase, the central bank has bought a total of $5.98 billion in the current fiscal year.

"In this month alone, the central bank purchased $310 million. It began dollar purchases through auctions in July of the current fiscal year," Arief added.

Following the settlement of import liabilities under the Asian Clearing Union (ACU), the country's foreign exchange reserves fell below $30 billion this month, prompting the central bank to purchase dollars both before and after ACU payments.

ACU payments are settled every two months to clear import bills among member countries.

In addition to Bangladesh, the regional mechanism includes India, Bhutan, Iran, Maldives, Myanmar, Nepal, Pakistan, and Sri Lanka. Central banks of these countries conduct transactions through this multilateral system.

According to BB officials, the central bank primarily boosts foreign exchange reserves through dollar purchases, with its latest data released on 14 May showing reserves at $29.65 billion.

Bangladesh Bank has been purchasing dollars amid strong remittance inflows into the banking system. In April, remittances reached $3.12 billion, up 13.5% year-on-year, with inflows expected to remain strong ahead of Eid-ul-Adha this month.

The Bangladesh Energy Regulatory Commission (BERC) has increased the consumer-level price of furnace oil by Tk18.85 per litre, setting the new rate at Tk113.54 per litre.

The revised price will come into effect from tonight (18 May) and remain effective until further notice, according to a notification issued by the regulator.

The new rate will apply to furnace oil supplied by the Bangladesh Petroleum Corporation (BPC) to the Bangladesh Power Development Board (BPDB), public and private power plants, industrial units, and other consumers.

In the notification, the BERC said the latest adjustment was made under Sections 22(kha) and 34 of the Bangladesh Energy Regulatory Commission Act, 2003.

The regulator stated that the revised price was determined based on the average Platts rate of refined furnace oil published during May and the free-on-board (FOB) price of imported crude oil.

The BERC, in its notification, also said the upward price adjustment was made following provisions of its February directive that allows furnace oil prices to be revised every three months or whenever necessary in line with international market movements.

The latest hike comes just over a month after the commission sharply increased furnace oil prices in April by Tk24.59 per litre, raising the rate from Tk70.10 to Tk94.69 per litre.

At that time, the BERC cited soaring international oil prices amid tensions in the Middle East and supply disruptions in the global market.

Furnace oil is widely used in Bangladesh's power plants as well as in industrial boilers and captive power generation units.

Any increase in fuel prices is expected to raise power generation costs and put additional pressure on industrial production expenses too.

The Dhaka Stock Exchange (DSE) and BRAC EPL Investments today (18 May) signed an agreement to facilitate subscription of the Sajida Orange Zero-Coupon Bond to mobilise capital specifically for women-focused economic empowerment and gender-inclusive development through the bourse's Electronic Subscription System (ESS).

The subscription process began on 18 May and will continue until 23 May, allowing eligible investors to participate through the DSE platform.

The bond, issued by development organisation Sajida Foundation, received approval from the Bangladesh Securities and Exchange Commission in March this year to raise Tk158.5 crore through private placement.

Designed as a social impact financing instrument, the zero-coupon bond aims to fund women-focused economic empowerment initiatives and expand access to inclusive financing.

According to the DSE, Tk75.73 crore of the total bond value has been allocated for eligible investors through the subscription process.

Speaking at the signing ceremony held at the DSE headquarters, Managing Director Nuzhat Anwar said innovative and inclusive financing structures are essential for leveraging Bangladesh's demographic dividend.

She said thematic instruments such as orange bonds are opening new avenues for alternative financing in the capital market.

BRAC EPL Investments Chief Executive Officer Syed Rashed Hossain said the Sajida Orange Bond is laying the groundwork for an internationally aligned thematic bond market in Bangladesh.

He said the initiative would help create a strong impact investment platform capable of attracting both local and foreign investors by combining financial returns with measurable social impact.

He also expressed hope that the successful launch of the bond through the DSE platform would encourage more thematic bond issuances in the future.

Deputy CEO of Sajida Foundation Md Fazlul Hoque, described the Orange Zero-Coupon Bond as a significant initiative for women's empowerment.

He said Sajida Foundation has been working for over 30 years to support women through employment generation, income enhancement and financial inclusion programmes.

Under the allocation plan, around 32% of the raised funds will be used for SME financing and employment generation, 20% for housing-related initiatives, and nearly 40% for agriculture and food security projects.

The remaining funds will support microfinance operations, programme implementation and technology-driven financial inclusion initiatives.

Senior officials from DSE, Sajida Foundation and BRAC EPL Investments were present at the signing ceremony.

Most Asian shares were lower in morning trade today (18 May), extending slides in global markets, as the impasse in the Middle East drove oil prices more than 2% higher.

Washington and Tehran agreed to a truce in April, but negotiations on ending the conflict have stalled and sporadic attacks in the region have continued.

US President Donald Trump issued a fresh warning to Iran yesterday, saying it had to move quickly towards a peace deal or "there won't be anything left of them".

The war has led to an effective blockade of the Strait of Hormuz, through which around 20% of global oil exports pass in peacetime.

The strait "remains meaningfully closed -- now approaching eleven weeks -- after the Trump-Xi summit in Beijing concluded without a breakthrough on reopening the waterway", MUFG's Michael Wan said today.

Tokyo shares lost 1% and Hong Kong was down 1.4%, while Shanghai was flat.

Sydney, Bangkok, Taipei, Singapore and Wellington also fell, with Jakarta tumbling 2.7%.

Seoul, which has renewed record highs in recent days thanks to the artificial intelligence stock boom, was trading up 1.2%.

"Global government yields rose sharply heading into the start of this week, as three forces collided: surging oil prices, fading hopes for a Strait of Hormuz resolution, and mounting fiscal concerns especially in the UK and US," Wan said.

However, last week's talks on trade between China and the United States have offered "a degree of relief for Asian markets", he added.

'Wave' of AI demand

Data showed today that China's consumer spending in April grew at the slowest pace in more than three years -- a stark sign of the challenges Beijing faces to reignite domestic activity.

In Tokyo, shares in memory chip maker Kioxia were not yet trading after a reported rush of buy orders following stellar quarterly results on Friday.

Kioxia, the world's third-largest producer of NAND flash memory chips -- used as storage in AI data centres -- has seen its stock soar nearly 300% over the past year.

The firm has forecast an eye-watering 1.3 trillion yen ($8.2 billion) in operating profit for April-June, saying it is "riding the large wave of AI demand, which has led to record high revenue and profits".

In South Korea, Samsung Electronics -- which has also profited massively from the AI memory chip boom -- resumed union talks in a bid to avoid a strike over bonus payments, due to start Thursday.

Later Monday, traders will have their eye on a meeting of G7 finance ministers and central bank chiefs that kicks off in Paris, with bond selloffs in the spotlight, analysts said.

Then all eyes will be on quarterly results from US chip titan Nvidia, set for Wednesday, which will be scrutinised as tech investors question whether huge spending on AI data centres is justified by potential returns.

Policy uncertainty remains one of the key barriers hindering both local and foreign direct investment, which are essential for economic growth and job creation in Bangladesh.

“The number one reason over the past few years has been policy uncertainty,” said Dhruv Sharma while delivering the keynote presentation titled ‘Bangladesh Development Update: Special Focus – A Business Environment that Delivers Jobs’.

“One cannot make a long-term decision about what to do with his or her firm without knowing the direction of policy,” he said, adding that the national election held last February had removed political uncertainty, which he described as another major barrier to attracting investment.

He noted that the high cost of capital, distorted tax incentives, lack of transparency, and supply chain and infrastructure challenges — including access to power, electricity and water — were among the other major obstacles.

Sharma said the government would release its five-year strategic framework soon, while the national budget is expected within the next couple of weeks.Bangladesh economic report

“So hopefully there will be some level of specificity regarding the direction in which the government wants to proceed,” he added while presenting the report at a dissemination event organised by the Policy Research Institute and the World Bank at PRI’s conference room in the capital.

The event was chaired by PRI Chairman Zaidi Sattar. Among others, Fahmida Khatun, Executive Director of the Centre for Policy Dialogue (CPD), TIM Nurul Kabir, Executive Director of the Foreign Investors' Chamber of Commerce and Industry (FICCI), and PRI Principal Economist Ashikur Rahman also spoke.

Describing fiscal and taxation policies as “unpredictable”, Mr Kabir said foreign investors wanted to see predictable long-term policies extending at least 10 years ahead to plan their business operations.

“When investors see a new policy being changed within two years, they lose confidence,” he said, explaining one of the key reasons behind the country’s low level of foreign direct investment.

Citing an example of declining investor confidence, he said foreign investors at headquarters often question why they should invest if the country itself does not fully understand its own growth potential.
According to the World Bank findings, key constraints to creating a business environment that delivers jobs include a heavy regulatory burden, with senior managers spending around 13 per cent of their time complying with regulations.

The report suggested smart deregulation, creating a level playing field, enabling private capital, and enhancing productivity for SMEs and informal firms as the way forward.

The Indian rupee fell to an all-time low on Monday, as stubbornly high energy prices due to the Iran war sent global bond yields soaring, denting risk appetite and deepening economic headwinds confronting the world's third-largest crude importer.

The rupee fell nearly 0.3% to 96.2275 per dollar, eclipsing its previous all-time low of 96.1350. Asia's worst-performing currency of 2026 has fallen to record lows for five straight sessions.

Traders said the losses would have been steeper if not for likely dollar-selling intervention by the Reserve Bank of India.

In addition to market interventions, Indian policymakers have deployed rare regulatory curbs to support the rupee including, most recently, restrictions on most silver imports.

The currency has declined 5.5% since the Iran war began.

"With chances of oil staying higher for longer, we revise our forecast for further INR weakness to 96/USD by mid-2026 and 98/USD by end-2026," analysts at BofA Global Research said in a note.

"Growth risks dampen prospects for any reversal in equity inflows while low carry, high hedging costs, concerns around wider fiscal deficit and rate-hikes would reduce scope for debt flows."

Overseas investors have net sold over $23.5 billion of local stocks and bonds since March.

Regional stocks slumped and bonds from Tokyo to New York extended losses as rising energy prices from the ongoing Middle East war fanned inflation fears.

Efforts to end the Iran war appeared to have stalled following a drone strike at a nuclear power plant in the United Arab Emirates.

The pressure reflected on Indian assets as well, with the 10-year bond yield up 6 basis points to 7.12% while the benchmark equity index Nifty 50 slumped over 1%.

India has been buying Russian ​oil irrespective of US ‌sanctions waivers, Sujata Sharma, a joint secretary in the petroleum ​ministry, said on ​Monday.

“Regarding (the) American waiver on Russia, I would like to ​emphasise that we have ​been purchasing from Russia earlier ... I mean before waiver also, during ​waiver also, and ​now also,” she told a media ‌briefing.

“It is basically the commercial sense which should be there for us to purchase ... ​There ​is no shortage of crude. Enough crude has ​been tied up ​repeatedly ... and this, whatever waiver or no waiver, it will not ​affect,” she ​said.

Government's highest economic-policy body Monday endorsed an ambitious Tk3.0-trillion annual development programme (ADP) for the upcoming fiscal year with nearly one-third of the money earmarked as block allocations.

Economists forewarn that such huge block allocations could create room for misuse of the public funds and undertaking "politically motivated" projects, but the finance minister says ADP structured on well-defined strategic parameter.

The ADP outlay for fiscal 2026-27 is 30.43-percent higher than the Tk 2.30-trillion original ADP outlay and 50-percent higher than the Tk 2.0 trillion revised one of the outgoing FY2026.

Of the new development-budget outlay, the government has kept aside Tk 973.04 billion as block allocations.

The National Economic Council (NEC) approved the massive ADP for the upcoming FY2026-27 taking implementation challenge after a massive blow in the current fiscal.

Till March this fiscal, the government agencies had executed only 35.57 per cent of the Tk 2.0- trillion RADP.

The NEC in a meeting held at the Planning Commission in Dhaka with NEC Chairperson and Prime Minister Tarique Rahman in the chair gave the seal of approval.City & Local Guides

Briefing reporters following the meeting, Finance and Planning Minister Amir Khosru Mahmud Chowdhury said out of the total Tk 3.0 trillion worth of ADP outlay, the government will finance Tk 1.90 trillion from its domestic resources, while the remaining Tk 1.10 trillion will be sourced through foreign loans and project grants.

"This ambitious development roadmap marks an approximate 50-percent increase from the revised ADP of the current fiscal year, signaling government's intent to ramp up public investment and enhance macroeconomic implementation capacity," he adds.

To a question, the Finance and Planning Minister said, "If we want to reap benefit of our continuous 'population dividend', we have no way but to enhance investment in the education and health sectors for human-capital development.

"Besides, we need more private investment from home and abroad which would be attracted through improving our infrastructure."

The minister explains that the ADP is structured around five key pillars derived from the country's proposed Five-Year Strategic Framework for Reform and Development

The framework transitions Bangladesh from an infrastructure-only model toward a balanced, inclusive framework, he adds.s

The five key pillars include state system reforms focusing on digitisation and the efficiency of law enforcement, inclusive socioeconomic development giving maximum precedence to education, healthcare, and social security.

Besides, Khosru says, economic restructuring, securing energy grids and investing in renewable energy, regional balanced development by improving logistics hubs and coastal infrastructure and socio-cultural cohesion with enhanced social harmony and cultural welfare have also been given focus in the newly formed ADP.

In a departure from traditional infrastructure-heavy development blueprints, the newly approved ADP prioritizes social protection, agricultural assistance, and human-resource development.

"This shift aligns closely with the government's electoral promises to insulate low-income households from inflationary pressures."

To facilitate new social protection schemes and welfare initiatives, the government allocated a record Tk 170 billion for the social safety-net programmes, including "Family Card", "Farmer Card", and "honorarium" to the religious leaders within the development framework.

In the new ADP, the government allocated Tk 1.789 trillion for investment and study projects, Tk 27.96 billion for technical-assistance projects, Tk 39.85 billion for "development fund", Tk 592.76 billion block allocations for different ministries and divisions, Tk 380.274 billion block allocations for Programming Division of the Planning Commission and Tk 170 billion for the social safety-net programmes.

The total number of projects in the upcoming ADP is 1,150 wherein 983 are investment projects, 23 for feasibility study, 109 TA and 45 self-funding.

Former World Bank Lead Economist in Dhaka office Dr Zahid Hussain says since the ministries could apply discretionary powers for getting the funds from the massive block allocations, it could create a room for misuse of the public funds and taking "politically motivated" projects.

"In another way, since the funds are not specified yet for any specific projects, the government could be able to cut the ADP size at the end of the fiscal if agencies fail to implement those fully or if the revenue generation becomes low like in the previous years," he told the FE.

The NEC also approved a Tk 89.248 billion worth of development budget for the autonomous and semi-autonomous government bodies.
Planning Commission officials say those funds will ensure flexible financing for flagship initiatives, such as the expanded "Family Card" and "Farmer Card" programmes, alongside targeted social-development assistance.

While social-safety initiatives heavily influence the budgetary philosophy, the transport and communications sector retains the highest traditional sectoral funding at Tk 500.92 billion or 16.7 per cent of the total ADP.

The education sector follows closely with Tk 475.91 billion, while healthcare is set to receive Tk 355.35 billion and the power and energy sector has been allocated Tk 326.91 billion.

Among ministries and divisions, Local Government Division has been accorded the largest individual share, totalling Tk 337.35 billion.

Addressing longstanding implementation challenges, the NEC has directed all ministries and divisions to strictly prioritize projects that are scheduled to be completed by June 2027.

The Planning Ministry emphasizes that stricter oversight mechanisms and new criteria for appointing project directors will be deployed to optimize fiscal discipline and curb discretionary spending during the upcoming fiscal year.

The Dhaka Stock Exchange has announced an updated schedule for its office and trading operations in line with the government-declared Eid-ul-Adha holiday period.

According to the announcement, the DSE will continue its regular office and trading activities on Saturday, 23 May and Sunday, 24 May following normal trading hours.

The exchange will then remain closed from 25 to 31 May due to the official Eid-ul-Adha holidays.

Normal trading and office operations will resume on 1 June.

Despite achieving healthy economic growth over the past decade, Bangladesh’s economy is now showing signs of strain due to persistent inflation and slowing private investment, exposing underlying weaknesses, experts said at an event yesterday.

“Bangladesh faced the Middle East crisis with several existing vulnerabilities, including persistent inflation, weak investment growth and financial sector stress,” said Dhruv Sharma, senior economist at the World Bank.

He made the remark while presenting a keynote speech at the seminar on “Bangladesh Development Update: Special Focus - A Business Environment that Delivers Jobs” jointly organised by Policy Research Institute of Bangladesh (PRI) and the World Bank at the PRI auditorium.

Although Bangladesh Bank has succeeded in bringing inflation down from around 12.5 percent to nearly 9 percent, tighter monetary policy alone cannot fully address the inflationary pressures, which are being fuelled less by excess demand and more by inefficiencies in supply chains, distribution systems and market management, according to Sharma.

World Bank’s Bangladesh-Poverty and Equity Assessment 2025 showed that another 1.4 million people slipped below the poverty line, raising the national poverty rate to 21.4 percent. Sluggish job creation and external shocks, particularly the Middle East conflict, have added to the pressure on households.

He cautioned that prolonged tight monetary conditions are weighing on investment and employment as businesses continue to struggle with high borrowing costs.

Unless wider reforms are made to improve market governance, logistics and the investment climate, hiking interest rates risks further slowing economic growth while failing to substantially ease inflationary pressure, he said.

Bangladesh’s growth model, long driven by cheap labour and protected domestic industries, is no longer delivering sustainable results, said Fahmida Khatun, executive director of the Centre for Policy Dialogue.

She said the country had achieved impressive economic growth over the years, alongside gains in health, education and poverty reduction. But the momentum has weakened since fiscal year 2021-22 as macroeconomic indicators deteriorated under both external shocks and internal vulnerabilities.

She pointed to persistent weaknesses in the banking sector, saying financial institutions were no longer able to adequately support productive private-sector investment with affordable financing.

According to her, many businesses are now focused more on survival than expansion amid regulatory uncertainty, policy unpredictability and bureaucratic delays.

Piecemeal measures would not be enough to restore stability, Fahmida stressed, calling instead for broad institutional reforms in governance, banking, trade policy and labour markets to ensure sustainable and employment-oriented growth.

Foreign investors are increasingly worried about Bangladesh’s unpredictable fiscal and taxation policies, which are hurting long-term investment confidence, said TIM Nurul Kabir, executive director at the Foreign Investors’ Chamber of Commerce and Industry (FICCI).

He said businesses planning investments over 10 years need policy consistency, but sudden changes in taxes and duties are creating uncertainty.

Restoring investor confidence would be a major challenge for the interim government ahead of the budget, he added.

Zaidi Sattar, chairman of the PRI, stressed the need for job-intensive growth, saying employment generation remains central to Bangladesh’s economic and social progress.

Rising youth unemployment posed a serious challenge for policymakers, he said, noting that Bangladesh’s experience over the past three decades showed that growth, employment and poverty reduction moved together.

Ashikur Rahman, principal economist at PRI, warned that Bangladesh’s growth trajectory has weakened since 2019, with slower growth and rising volatility becoming a growing concern.

“The economy’s buffers are now very weak,” he said, stressing that reforms in the financial and revenue sectors were no longer optional.

Rahman cautioned that Bangladesh could face a middle-income trap without urgent reforms and stronger macroeconomic discipline.

Asian share markets were on the skids on Monday as fresh drone attacks in the Gulf shoved oil prices and bond yields higher, while the AI euphoria underpinning the tech bull run will be tested by earnings from Nvidia this week.

A drone strike caused a fire at a nuclear power plant in the United Arab Emirates, while Saudi Arabia reported intercepting three drones, as US President Donald Trump warned that Iran must act "fast" to reach a deal.

Meanwhile, the vital Strait of Hormuz remains closed to all but a trickle of shipping as Tehran tries to formalise its control of the waterway that during normal times carries 20% of the world's oil trade.

"The closure is draining global oil inventories fast," warned analysts at Capital Economics. "Inventories could reach critical levels by end-June, setting the stage for Brent at $130-140pb, if not higher."

"If the strait is closed through year-end and oil stays around $150pb into 2027, that would push inflation to near 10% in the UK and euro zone, send rates back to their recent peaks and lead to global recession."

Brent was trading up 1.9% at $111.34 a barrel, while US crude climbed 2.2% to $107.72 a barrel. Crucially, futures for September climbed above $100 and December hit a contract high as markets braced for protracted shortages.

G7 finance ministers are scheduled to gather in Paris on Monday to discuss the Strait of Hormuz and critical raw material supplies, even as geopolitical differences threaten to test the group's cohesion.

Global bond markets were hammered on Friday on concerns that energy costs would stay high and thus continue to drive inflation.

Yields on US 10-year notes hit a 15-month top of 4.631%, having already surged 23 basis points last week. Yields on 30-year bonds reached 5.159% after jumping 18 basis points on the week.

Japanese yields hit peaks not seen since 1996 as the government proposed issuing fresh debt to fund a planned extra budget to cushion the economic blow from the US-Israeli war on Iran.

Investors in turn feared central banks globally would have to tighten to head off an inflationary spiral and a hike from the Federal Reserve is now seen as a 50-50 chance this year.

Minutes of the Fed's last meeting are out on Wednesday and should show how much pressure there was on the committee for a shift to a neutral stance and away from an easing bias.

New Fed Chair Kevin Warsh will have a chance to air his views at the G7 meeting and analysts are keen to hear whether he still favours the rate cuts that Trump so desires.

Japan's Nikkei eased 0.9%, having fallen 2% last week from record highs. South Korean stocks dipped 0.3%, though Samsung Electronics gained after a court issued a partial injunction against a union strike.

MSCI's broadest index of Asia-Pacific shares outside Japan lost 0.8%. Chinese blue chips lost 0.6%, as economic data disappointed. China's April retail sales edged up 0.2% when analysts had looked for growth of 2.0%, while industrial output rose a sluggish 4.1%.

AI, retail earnings to test the bull run

S&P 500 futures fell 0.6% and Nasdaq futures lost 0.7%. For Europe, EUROSTOXX 50 futures and DAX futures both fell 1.0%, while FTSE futures were flat.

While Wall Street has been supported by upbeat earnings, analysts at Citigroup noted that half of the boost to earnings came from one-time items like tariff add-backs and asset mark-ups. Both the gains in profits and the overall indexes were also tightly based.

"We identify 20 stocks that contributed the majority of index earnings upside," analyst Scott Chronert wrote in a note. "Forward guidance increases also show a similar narrow focus."

"Broadening is a necessary condition for meaningful index upside from here," he added. "This will require a better line of sight to the Iran conflict wind-down."

Rising yields also push up borrowing costs for the US government and home buyers, a negative for the budget deficit and housing markets. They also mean a higher discount for future company earnings, challenging stock valuations.

The all-important AI trade will be tested by earnings from Nvidia that are due on Wednesday, where expectations are sky-high for the world's most valuable company.

Nvidia shares are up 36% since a March low, while the Philadelphia SE semiconductor index has surged more than 60%, amid voracious demand for chips as tech companies spend massively to build AI-related infrastructure.

Also due this week are results from a host of retailers led by Walmart, which will provide an insight into how consumers are faring with high energy prices.

In forex markets, risk aversion has tended to benefit the greenback as the world's most liquid currency. The US is also a net energy exporter, giving it a relative advantage over Europe and much of Asia.

The euro sat at $1.1618 after losing 1.4% last week. The pound wallowed at $1.3311, having dived 2.3% last week as political instability added to already intense pressure on the gilt market.

The dollar held firm against the yen at 158.91, with only the threat of Japanese intervention preventing another speculative assault on the 160.00 chart barrier.

In commodity markets, gold idled at $4,544 an ounce, having drawn little support so far as a safe haven or as a hedge against inflation risks.

Bangladesh Bank (BB) has purchased $100 million from six commercial banks, marking the highest single-day greenback purchase by the central bank in May.

The dollars were bought at a rate of Tk 122.75 each on Monday, according to data released by the regulatory body.

Earlier, the highest single-day dollar purchase this calendar year was recorded on Jan 6, when the central bank bought $223.5 million at a rate of Tk 122.30 per dollar.

Within the current 2025-26 fiscal year, the highest single-day purchase took place on Sept 15 last year, when the central bank snapped up $353 million from the market at Tk 121.75 per dollar.

BB Executive Director Arief Hossain Khan told bdnews24.com: "With Monday’s transaction, the central bank has purchased a total of $310 million from commercial banks so far in May."

Before Monday's large-scale intervention, the regulatory body had last purchased $40 million from the market on Thursday.

According to BB data, the regulator has injected significant local currency into the banking system by purchasing a cumulative total of $5.98 billion from the market so far in the current fiscal year.

New Zealand will continue duty-free and preferential market access for Bangladeshi goods after the country graduates from the least developed country (LDC) category, David Pine, New Zealand’s non-resident high commissioner in Dhaka, said yesterday.

New Zealand has been giving special importance to ensuring market access for Bangladeshi goods after the graduation, he said at a meeting with Commerce Minister Khandakar Abdul Muktadir at the secretariat in Dhaka, according to a ministry press statement.

He said that given the current global scenario, export market diversification is important, but so is diversifying import sources, adding that both countries stand to benefit from expanded bilateral trade.

New Zealand goods, he added, are known for reliability, high standards, food safety, and being free of genetically modified organisms, and the country is interested in establishing a stable, long-term trade structure.

Bangladesh exported $99.73 million worth of goods to New Zealand in fiscal year 2024-25, around 90 percent of which were garment items, according to the Export Promotion Bureau. In the July–April period of the current fiscal year, the figure stood at $78.93 million.

Both sides also expressed interest in exploring a trade deal such as a free trade agreement, to boost investment and bilateral trade, states the ministry statement.

Meanwhile, minister Muktadir said employment generation, and rapid growth of investment are important for Bangladesh’s sustainable LDC graduation.

He also noted that it is important to maintain the competitiveness of garment exports and ensure preferential market access for the country’s major apparel items.

The minister also asked the high commissioner to encourage entrepreneurs from his country to choose Bangladesh as an investment destination, as the Bangladesh government has taken many measures to ease doing business.

Bangladesh is scheduled to graduate from the LDC category on November 24 this year, though it has applied to the UN for a three-year deferment to 2029.

Some countries such as the UK, Canada, and Australia have already assured that they will continue preferential market access for Bangladeshi goods even after LDC graduation.

At the same time, Bangladesh has also been lobbying some of its trading partners to sign trade deals to retain duty-free market access in the post-LDC period.

Bangladesh risks losing $17.5 billion worth of exports annually after LDC graduation, as nearly 75 percent of its exports are LDC-induced.

Rapid expansion of Bangladesh’s liquefied petroleum gas sector without adequate safety compliance, technical oversight and trained manpower is increasing the risk of fires and explosions in homes, industries and transportation systems, experts and regulators warned yesterday.

They said most LPG-related accidents are preventable, but negligence, weak enforcement, poor maintenance and lack of safety awareness continue to expose consumers and workers to serious hazards.

The observations came at a roundtable titled “Bangladesh’s LPG Sector Faces Rising Safety and Regulatory Challenges”, jointly organised by the Bangladesh Energy Regulatory Commission, LPG Operators Association of Bangladesh, and Energy and Power magazine at the BERC conference room.

BERC Chairman Jalal Ahmed said, “Use of LPG is increasing day by day, but safety measures are not being taken properly even though it should be the first concern.”

Presenting the keynote paper, Prof Md Easir Arafat Khan of the Department of Chemical Engineering at BUET said LPG remains a safe, clean and reliable fuel only when handled properly.

He said improper handling, negligence and non-compliance with safety regulations were the primary causes of most major LPG accidents.

Prof Arafat said many facilities still lack certified gas detectors, emergency shutdown systems, alarms and adequate fire protection measures.

“In fire hazards, fuel, oxygen and ignition sources are required. Since LPG itself is the fuel and oxygen already exists in the atmosphere, preventing gas leakage and accumulation becomes the key safety priority,” he said.

“Delay in leak detection and emergency response can allow gas accumulation, which may eventually lead to catastrophic explosions or fires,” he warned.

“Weak regulatory enforcement and oversight are also contributing to the risks,” he added.

Prof Arafat said around 90 percent of autogas stations are reportedly operating without valid licences from the Department of Explosives, indicating major gaps in safety verification and regulatory compliance.

He warned that unauthorised and unlicensed LPG road tankers are contributing to unsafe transportation practices.

Mohammad Serajul Mawla, president of the Bangladesh LPG Autogas Station and Conversion Workshop Owners’ Association, said operators are struggling with growing safety and regulatory problems while continuing operations without proper licences and compliance.

“Non-standard equipment, lack of proper training and low awareness about safe use are major concerns,” Mawla said.

He also criticised the LPG regulations introduced in 2016, saying stakeholders were not adequately consulted about practical complications during policy formulation.

He demanded more realistic and enforceable amendments to the policy.

Muhammad Mehedi Islam Khan, assistant inspector at the Department of Explosives, said limited manpower makes it difficult to oversee explosives, gas and flammable liquids across the country.

Iqbal Bahar Bulbul, assistant director of Bangladesh fire service, said many domestic accidents occur after gas accumulates overnight inside enclosed kitchens because the cooker is not properly turned off at night.

Later, all it takes is a spark to cause an explosion, he said.

He recommended keeping fire extinguishers and fire blankets in kitchens as preventive measures.

Syeda Sultana Razia, member for petroleum at BERC, questioned the effectiveness of transportation safety oversight.

“Authorities should inspect not only licences but also emergency valves, firefighting systems and vehicle safety conditions,” she said.

She also questioned whether the BRTA is handling transportation oversight strongly enough.

Razia expressed concern over irregular propane-butane composition in LPG cylinders available in the market, warning that incorrect composition can alter cylinder pressure and create additional safety risks.

AKM Fazlul Hoque, joint secretary to the Power, Energy and Mineral Resources Division, acknowledged loopholes in existing regulations and said amendments are being prepared.

LOAB President Mohammed Amirul Haque urged all stakeholders to work together to improve safety standards.

For over a decade, governments have been allocating a disproportionately low share of the budget to renewable energy despite ambitious pledges, with nearly all power and energy allocations going to fossil fuel projects, a Centre for Policy Dialogue (CPD) study has found.

The study, unveiled at an event jointly organised by CPD and Dhaka Stream at Pan Pacific Sonargaon Dhaka yesterday, comes just weeks before the BNP-led government, which has signalled a push toward clean energy, is set to unveil its first full budget. The study was co-authored by Khondaker Golam Moazzem, research director of CPD.

Presenting the findings, Khalid Mahmud, programme associate at CPD, said the allocation trend from fiscal year 2015-16 (FY16) to FY26 shows fossil fuel projects consistently capturing over 90 percent of power and energy development spending.

The budget for the ongoing FY26 showed marginal improvement, with renewable energy receiving 4.6 percent, yet fossil fuel-based projects still dominated at over 95 percent, reflecting what he called limited structural rebalancing, he said.

Mahmud added that the FY26 budget also dropped a Tk 100 crore allocation for renewable energy that had been included the previous year, and introduced no new incentives for solar or other clean technologies.

Bangladesh’s total installed renewable energy capacity stands at approximately 1,745 MW as of May 11, with solar unit accounting for over 83 percent of that. In total, renewables represent just 5.4 percent of total installed capacity, well short of a target set years ago to reach 10 percent by 2021.

The compound annual growth rate of renewables from 2016 to May 2026 is 15.78 percent. Of 42 active development projects, only three focus on renewable energy.

Despite the wind energy potential in the coastal region, wind power installation remains very low, accounting for only about 62 MW, said Mahmud, noting that renewables in Bangladesh continue to remain constrained within the national budget framework.

“The national budget must treat renewable energy not as a sub-line within the Power Division, but as a strategic national investment priority deserving its own fiscal instrument,” said Mahmud.

The government should restore and progressively scale up ADP allocations for renewables from FY27 onward, pegged to annual MW deployment targets, he added.

Also speaking at the event, Rashed Al Mahmud Titumir, finance and planning adviser to the prime minister, said the energy sector is caught in a vicious cycle that is difficult to escape.

He also pointed out that the wide gap between installed generation capacity and actual utilisation has led to significant waste through capacity charges.

“This mismatch is leading to a significant waste of public resources, most notably through capacity charges. While capacity is built to meet expected future demand, much of it remains underutilised in practice, an issue clearly reflected in Bangladesh’s experience,” he said.

“Many of the contracts in this sector were not concluded in full compliance with established rules and procedures, yet they have been given legal protection. This raises serious concerns from the perspective of transparency and fairness,” he added.

The PM’s adviser went on to point out that instead of transitioning toward a sustainable system, the country has largely continued to rely on a fossil fuel–dependent structure. “Together, these three issues form the core structural challenges of the sector.”

Without addressing these deep-rooted problems, it will not be possible to break free from the current cycle, he said, adding that resolving the crisis will require collective and coordinated action.

Rehan Asad, the PM’s adviser on telecom and ICT, said land scarcity is a major constraint on large-scale renewable deployment, citing risks to crop production from ground-mounted solar.

Hence, he said the government is prioritising rooftop solar solutions. “The government is taking a broader approach, planning renewable energy development in line with the overall energy ecosystem.”

Iftekhar Mahmud, editor-in-chief at Dhaka Stream, raised concerns about the sector’s integrity, saying large-scale renewable projects are increasingly being dominated by groups linked to the fossil fuel industry, including individuals accused of land grabbing and money laundering.

Local innovators and specialist institutions are being sidelined, while genuine entrepreneurs must navigate approvals from as many as 32 government departments, he added.

He said this difficult process discourages real investors and creates opportunities for influential groups more interested in land acquisition and bank loans than energy production.

The UAE is to fast-track construction of a new oil pipeline bypassing the Strait of Hormuz, official media said on Friday, after the Middle East war crippled exports through the vital waterway.

The West-East Pipeline will double state oil giant ADNOC’s capacity through Fujairah port and is expected to become operational next year, the Abu Dhabi Media Office said.

Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan “directed ADNOC to accelerate delivery of the project”, the report said.

An existing, 360-kilometre (224 miles) pipeline from the Habshan oil fields to Fujairah has a capacity of 1.8 million barrels per day, according to the Port of Fujairah website.

The UAE, which made waves by quitting oil cartel OPEC at the start of this month, has plans to raise production capacity to five million barrels a day by next year.

Oil facilities in Fujairah have been repeatedly struck during the Middle East war. Three Indian nationals were wounded in the latest attack on May 4.

The cost of the project to build transmission infrastructure for supplying electricity from the Rooppur Nuclear Power Plant (RNPP) has been reduced by Tk 23.30 billion under a revised proposal after some expensive components were removed from the original design, officials said.

The project, titled "Development of Transmission Infrastructure for Power Evacuation of Rooppur Nuclear Power Plant", will now cost Tk 86.52 billion, down from the original estimate of Tk 109.82 billion.

At the same time, the implementation deadline for the project has been extended until June 2026.

The Planning Commission has recommended approval of the first revised proposal at a meeting chaired by Dr Nurun Nahar Chowdhury, member (secretary) of the Industry and Energy Division of the Planning Commission.

According to officials, the revised cost represents a 21.22 per cent reduction from the original estimate, resulting in significant savings for the government.

The project is being implemented by Power Grid Bangladesh PLC.

Under the revised financing plan, Tk 60 billion will come from the Indian line of credit (LOC), Tk 14.57 billion from the government of Bangladesh and Tk 11.71 billion from PGCB's own funds.

Officials said the sharp reduction in project cost was mainly achieved by dropping several costly components from the original project design.

One of the major changes was the exclusion of a planned 20-kilometre river-crossing transmission line over the Padma and Jamuna rivers after its estimated cost became exceptionally high during the bidding process.

The component will now be implemented separately under a domestic project.

In addition, delays in land acquisition and GIS substation construction led to the removal of the 230kV Dhamrai substation expansion from the Indian LOC funding package.

Despite the reduction in overall project cost, officials said the revised budget had to absorb higher foreign exchange costs during implementation.

The original project proposal in 2018 was prepared based on an exchange rate of Tk 80.83 per US dollar, while the revised budget considered an average exchange rate of Tk 103.79 per dollar.

Officials noted that although the project cost in dollar terms declined due to the removal of several components, the depreciation of the local currency offset part of the savings.

The extension of the project deadline will allow Power Grid Bangladesh PLC to complete the remaining high-voltage transmission lines, including the 150km Rooppur-Dhaka line and the 155km Rooppur-Gopalganj line, ensuring smooth transmission of nuclear power to the national grid.

Stocks opened the week on a negative note as renewed selling pressure dragged down key indices on the Dhaka Stock Exchange (DSE) today (17 May), reversing gains from the previous three sessions amid the absence of strong market catalysts.

The benchmark DSEX index plunged 19 points to settle at 5,226, while the blue-chip DS30 index declined 11 points to close at 1,970.

Market breadth remained negative, with 228 issues declining compared to 119 advancing and 45 remaining unchanged, reflecting a broadly bearish sentiment among investors.

Turnover also took a hit, dropping by 13% to Tk868 crore, indicating reduced participation as cautious investors opted to stay on the sidelines.

According to EBL Securities PLC, the market retraced into correction territory after a brief recovery phase, as sustained selling in major stocks continued to weigh on overall sentiment.

The session began on a relatively stable note, with indices hovering near the flatline in early trading. However, as the day progressed, selling pressure intensified across large-cap stocks, pushing the market into negative territory and extending the weakness observed toward the close of the previous session, it added.

Market analysts pointed to the lack of a decisive trigger to sustain the recent upward momentum in the selective stocks, leading investors to book profits and adopt a more defensive stance.

Heavyweight stocks such as Beximco Pharmaceuticals, Eastern Bank, BAT Bangladesh, NCC Bank and City Bank emerged as major index draggers, contributing significantly to the day's decline.

On the sectoral front, pharmaceuticals dominated turnover, accounting for 14.5% of total market activity, followed by general insurance at 14.2% and engineering at 12.7%.

Despite this activity, most sectors posted negative returns. Services suffered the steepest decline, falling 2.0%, followed by IT, which dropped 1.2%, and life insurance, which lost 1.1%.

In contrast, a few sectors managed modest gains, with non-bank financial institutions rising 4.2%, jute advancing 0.8%, and travel edging up 0.5%.

Among individual stocks, NCC Bank, Bangladesh National Insurance, Dominage Steel, Asiatic Laboratories and Techno Drugs topped the turnover chart, reflecting active investor participation in these counters.

The day's top gainers included Global Heavy Chemicals, which surged 10%, followed by Investment Corporation of Bangladesh, National Feed Mill, SK Trims, and Appollo Ispat, all posting notable gains of over 9%.

On the losing side, Apex Spinning led the decline with an 8.72% drop, followed by Apex Tannery, GSPO Finance, Peoples Leasing and Fareast Finance, all registering significant losses.

Meanwhile, the Chittagong Stock Exchange (CSE) also ended in the red. The CSCX index fell 33 points to 9,031, while the broader CASPI index declined 39 points to settle at 14,675. Turnover at the port city bourse stood at Tk32 crore, mirroring the subdued trading activity seen in Dhaka.

The government is planning to form a capital market reform commission to bring transparency and restore investor confidence, according to officials at the Ministry of Finance.

The decision was taken at a recent budget-related meeting. It forms part of the ruling BNP’s broader commitment to reviving the capital market, which featured in the party’s election manifesto.

Ministry officials said the commission will work toward overall market reform, with the government also planning to focus on building a stronger bond and equity market.

Besides, the government is also planning to take steps towards ensuring the use of blockchain technology, create an investment gateway for non-resident Bangladeshis, and attract greater foreign investment.

The meeting was informed that Dhaka Stock Exchange’s (DSE) market capitalisation has dropped by Tk 33,000 crore, or 4.4 percent, between January 2024 and February 2026.

The bourse’s benchmark index, the DSEX, fell from 6,153 to 5,600 points in the same period.

The move follows reform efforts under the interim government, which had formed a five-member taskforce to recommend changes to the stock market.

The taskforce, after extensive stakeholder consultation, proposed amendments to several securities rules, many of which the Bangladesh Securities and Exchange Commission (BSEC) has since adopted.

In a successor note before leaving office, former finance adviser Salehuddin Ahmed said the BSEC was restructured after the interim government assumed office, and an external investigation committee was formed to look into 12 irregularities from the previous regime.

A taskforce was also formed that worked on reforming three major rules regarding margin loans, mutual funds and public offering issuance, he added.

Apart from these, another committee was formed to strengthen the BSEC and improve the capital market which also submitted a report including recommendations.

The recommendations were sent to relevant ministries to implement, Ahmed added in the note.