The Dhaka Chamber of Commerce and Industry (DCCI) has expressed concern that the country's tight monetary policy could undermine the intended benefits of the growth-oriented national budget aimed at boosting the private sector.

In a statement issued today (30 June), DCCI President Taskin Ahmed said the decision to keep the policy interest rate unchanged at 10% despite private sector credit growth falling to 5% was "deeply disappointing" for businesses.

He said Bangladesh has pursued a contractionary monetary policy for the past four years, yet inflation has failed to ease as expected. Instead, inflation rose to 9.42% in May this year, the highest among South Asian countries.

According to the DCCI, the newly approved Tk9.38 lakh crore national budget includes a range of tax and duty incentives to encourage business expansion, investment and industrialisation. However, it said the central bank's monetary policy does not reflect the same pro-growth approach, indicating a clear mismatch between fiscal and monetary policies.

The chamber said maintaining a high policy rate has limited the scope for reducing borrowing costs, which could negatively affect business activities and investment.

However, the DCCI welcomed the Bangladesh Bank's Tk60,000 crore stimulus fund, stressing that lessons from past experiences should be used to ensure its transparent and effective implementation.

It urged the central bank to ensure that crisis-hit and struggling cottage, micro, small and medium enterprises (CMSMEs), export-oriented industries and other productive businesses can access the fund quickly and on easy terms.

The chamber also called for prioritising support for both closed industrial units that could be revived and businesses currently at risk of shutting down.

The DCCI further expressed concern over the government's increasing reliance on bank borrowing, noting that public sector credit growth has reached nearly 26%, well above the target.

It warned that the government's borrowing is absorbing a significant share of the banking sector's limited liquidity, potentially crowding out private sector access to credit.

The chamber said that regardless of how attractive the tax incentives announced in the budget may be, their expected benefits would be difficult to realise without adequate and affordable financing.

It therefore called for stronger coordination and greater policy alignment between monetary and fiscal authorities to address current economic challenges and support sustainable private sector-led growth.

The Bangladesh Bank has lowered its private sector credit growth target to 6.8% for December under its Monetary Policy Statement for the first half of FY2026-27.

The central bank unveiled the new monetary policy on its website today (30 June).

Private sector credit growth stood at 5% in May, well below the 8.5% target set for the whole of FY2025-26. Despite the shortfall, the central bank expects lending to recover to 6.8% by December.

The policy also sets the domestic credit growth target at 10.5%.

A Bangladesh Bank deputy governor told the media that the central bank would maintain its current policy rate while reintroducing a 4% cap on the spread between banks' lending and deposit rates to prevent excessive lending charges.

"We will maintain the current policy rate. At the same time, the 4% cap on the lending-deposit rate spread will ensure banks cannot charge excessive interest. We expect private sector credit growth to reach 7% by December and around 8% by next June," the deputy governor added.

According to the Monetary Policy Statement, the central bank said Bangladesh's economy is passing through a fragile recovery marked by elevated inflation, sluggish investment, employment pressures, energy supply uncertainty, high non-performing loans (NPLs) and growing global economic risks.

It noted that geopolitical tensions in the Middle East could disrupt oil and fertiliser supply chains, increasing import costs and intensifying domestic inflationary pressures.

The MPS said prolonged global shocks – including the Covid-19 pandemic, the Russia-Ukraine war and the ongoing Middle East conflict – have weakened the taka, raised import costs and eroded the working capital of many manufacturing firms and cottage, micro, small and medium enterprises (CMSMEs), leaving many factories operating below capacity.

The central bank also said commercial banks have become increasingly cautious in extending loans due to rising loan defaults and higher government borrowing, resulting in surplus liquidity being channelled into government securities instead of private sector investment.

Despite these challenges, Bangladesh Bank expects economic growth and investment to recover gradually in the coming months, supported by the FY2026-27 budget, targeted credit support and reforms in the financial sector.

However, it warned that energy shortages, structural inflation, financial sector stress and external uncertainties remain key downside risks to the outlook.

The World Bank will phase out its lending to China by 2031, according to the organization's new country partnership framework, a source familiar with the matter told AFP on Tuesday.

The source confirmed an earlier report of the development by the Financial Times.
"China has made significant development advances over the past several decades -- progress that the World Bank and others have supported," said a World Bank official familiar with the matter, speaking on condition of anonymity."Now we are reaching a new phase of our relationship, reflecting that reality."

World Bank lending to China -- the world's second-largest economy -- has steadily declined in recent years as the Asian giant saw explosive growth and a reduction in poverty indicators.

In his first term in office, US President Donald Trump demanded that the World Bank stop lending to China entirely, as he adopted a more aggressive approach to Washington's chief economic rival.

Trump has maintained that tone in his second term, but has not specifically repeated that demand.

World Bank lending to China peaked at $2.42 billion in 2017, but has fallen since then, reducing to $750 million in 2025.

China also contributes funds to the World Bank's International Development Association (IDA) pool for the world's least developed countries, with its $1.5 billion under the latest replenishment round making Beijing the fifth-largest donor.

"The World Bank's role is shifting from lender to knowledge partner, in line with China's development trajectory," said the World Bank official.

On June 16, the World Bank announced a similar plan for Poland, planning to reduce loans to zero by 2031 while maintaining technical assistance.

The Dhaka stock market rebounded sharply in fiscal year 2025-26, with the benchmark DSEX index jumping 19%, its best yearly performance in years, on the back of sweeping reforms and renewed investor confidence.

The broad-based DSEX index gained 924 points during the fiscal year to close today (30 June) at 5,762 on the final trading session, while the blue-chip DS30 index rose 363 points, or 20%, to 2,178, according to data from the Dhaka Stock Exchange (DSE).

The recovery was also reflected in valuations and trading activity. Total market capitalisation increased by Tk36,421 crore, or 5.49%, to Tk6.98 lakh crore, while daily turnover more than tripled to Tk1,500 crore on the last trading day of FY26 from Tk464 crore a year earlier.

The market ended the fiscal year on a strong note, extending its winning streak to six straight sessions. The DSEX added another 40 points on the final trading day as investors continued accumulating fundamentally strong stocks after the passage of the Finance Bill.
According to EBL Securities, the rally was driven by optimism over the market's near-term outlook and supportive measures in the approved budget, which encouraged broader participation.

Sheltech Brokerage said investor appetite strengthened following market-friendly fiscal reforms, particularly tax incentives tied to stock market investments. Strong buying interest from the opening bell, especially in blue-chip engineering stocks, helped sustain the market's upward momentum throughout the session.

Recovery despite economic headwinds

The market's performance came despite one of the most challenging macroeconomic environments in recent years.

Throughout FY26, investors grappled with contractionary monetary policy, high treasury bond yields, persistent inflation, weak investor confidence, political uncertainty and geopolitical tensions arising from the Middle East conflict.

In its Monetary Policy Statement for July-December 2026, released today, Bangladesh Bank acknowledged these challenges and said the capital market showed encouraging signs of recovery despite tight financial conditions and domestic and global uncertainties.

The central bank said the stock market improved in FY26, marked by higher turnover, increased market capitalisation and renewed investor participation despite the challenging macroeconomic backdrop.

Political transition brings new direction

Market sentiment began improving following the 12-February election, when the BNP-led government assumed office and pledged to rebuild the country's financial markets.

One of its earliest moves was a major leadership overhaul at the Bangladesh Securities and Exchange Commission, appointing veteran corporate executive Masud Khan as chairman.

Speaking after assuming office, he pledged to strengthen market surveillance, improve enforcement, restore transparency and attract foreign investment.

With more than four decades of corporate leadership experience, including serving as Group CEO of Crown Cement and former chief financial officer of LafargeHolcim Bangladesh, Masud Khan said rebuilding investor confidence would remain the regulator's highest priority.

Since taking office, the regulator also withdrew the long-standing floor price mechanism, allowing market forces to determine share prices after years of artificial restrictions.

Budget delivers biggest reform package

A key driver of the market's year-end rally was the FY27 national budget, which unveiled one of the most comprehensive reform packages for the capital market in recent history.

The government cut taxes on dividend income, introduced corporate tax incentives to encourage quality companies to go public and removed the investment ceiling for mutual fund tax rebates.

The reforms also eased listing requirements, offering tax benefits to companies seeking public listings while encouraging greater public shareholding and stronger corporate transparency.

Addressing Parliament during the budget session, Finance Minister Amir Khosru Mahmud Chowdhury said rebuilding investor confidence and restoring a modern financial system had become one of the government's top priorities.

He said the market had suffered from years of poor governance, mismanagement and policy failures, and pledged to shift Bangladesh from a debt-driven financing model to an investment-led economy supported by equity financing and foreign direct investment.

Prime Minister Tarique Rahman also reaffirmed the government's commitment to reviving the market.

"In the past, many people lost their capital due to the stock market crash. There have even been tragic incidents of suicide by those who lost everything, which is deeply painful," he told Parliament.

"We are restructuring the capital market. We believe that under the leadership of our finance minister, the capital market will become vibrant. No one should ever have to lose their capital and everything they own here again."

Central bank eyes larger capital market

Bangladesh Bank has placed the capital market at the centre of its long-term financing strategy.

At a meeting with Chittagong Stock Exchange officials on 29 June, Governor Mostaqur Rahman said a vibrant stock market is essential to complement the banking sector by providing long-term equity financing to businesses.

He unveiled a phased plan to raise market capitalisation by Tk20,000 crore in FY27, Tk25,000 crore in FY28 and Tk30,000 crore in FY29.

Meeting these targets would reduce excessive reliance on bank borrowing and strengthen private sector investment, he said.

The governor also highlighted recent reforms to attract foreign portfolio investment.

Bangladesh Bank has revised the rules governing Non-resident Investors' Taka Accounts (NITA), allowing proceeds from the sale of listed securities to be credited directly to investors' accounts and enabling authorised dealer banks to automatically deduct and deposit capital gains tax.

Stubbornly high inflation is draining consumers' pockets, and businesses are feeling the pain as corporate profits across 17 sectors crashed by 44% in the first quarter of 2026, led by a 144.6% fall in the banking sector.

According to data from Lion City Advisory, aggregate net profits fell to Tk2,764.45 crore in Q1 of 2026, down from Tk4,962.11 crore in the same period last year.

The financial advisory firm compiled financial data from 232 listed companies across 17 sectors, including banks, non-bank financial institutions (NBFIs), manufacturing and services.

Of more than 350 listed companies, 232 have published their financial statements as of 30 June. Companies following the July-June fiscal year reported nine-month earnings, while those following the January-December calendar year disclosed first-quarter results.

Business leaders and analysts said the profit crunch followed a highly sluggish 2025, pushing the corporate sector into a prolonged period of economic stagnation.

Companies are under severe pressure as high inflation, gas and power shortages, and banking sector weaknesses squeeze operations and erode margins, they added.

Banking sector's 144.6% plunge

Leading the downturn, the banking sector suffered a 144.6% plunge in profits, swinging from a Tk1,459.67 crore profit in Q1 2025 to a staggering loss of Tk651.47 crore in Q1 2026.

Of the 30 banks that published financial results, only five reported significant losses. However, losses at these institutions wiped out the gains made by profitable banks.

The five banks – National Bank, IFIC Bank, Islami Bank, Premier Bank, and Rupali Bank – posted combined net losses of Tk2,787.61 crore during the January-March quarter.

The travel and leisure sector recorded the sharpest deterioration, plunging 2,755.5% into losses. The ceramics sector and NBFIs also suffered heavy setbacks, with profits declining by 438% and 107.3%, respectively.

Traditional manufacturing sectors remained under pressure from the economic slowdown. Textile profits dropped 76.3%, while cement earnings declined 41.3%, data showed.

However, some sectors managed to withstand the downturn. Fuel and power emerged as a major growth driver, with profits rising 53.9% to Tk814.45 crore. Telecommunications also posted a 19.7% increase to record the highest sectoral profit of Tk966.63 crore.

The pharmaceutical sector, which has been a consistent performer, also saw profits decline by around 9% year-on-year in the first quarter.

Commenting on the quarterly results, Abdullah Al Faisal, director at Lion City Advisory, said the figures showed that Bangladesh's corporate sector remained under pressure.

"While revenues have remained resilient, profitability has been hit by weak demand, banking sector vulnerabilities, business uncertainty and structural challenges," he said.

"Although aggregate revenue stayed broadly stable, net profits declined sharply, highlighting the difficulties businesses continue to face despite some easing in financing costs."

He said recovery depended on stronger private investment, a healthier banking sector, faster public project implementation and greater macroeconomic stability in the coming quarters.

'Industries under systematic pressure'

Riad Mahmud, president of the Bangladesh Association of Publicly Listed Companies (BAPLC) and managing director of National Polymer Industries, told The Business Standard that the industrial sector had been under systematic pressure since the Covid-19 pandemic.

"Alongside high inflation, the gas and electricity crisis continues. High lending rates have made the industrial sector more vulnerable. It is difficult to run businesses with 12-14% borrowing costs, discouraging entrepreneurs from making new investments," he added.

Mahmud said the government had recognised the industrial sector's crisis and announced an incentive package that could ease working capital shortages if implemented.

"However, it remains only an announcement. Banks have not yet given any final decision on implementing the incentives. Even after receiving letters, they have not responded," he said.

Mohammed Amirul Haque, managing director of Premier Cement Mills, told TBS that the overall business situation in the cement sector remained weak.

"Some large companies are performing well due to their own sales networks and brand reputation, but others have failed to maintain growth," he said.

Cement sector entrepreneurs said the slowdown in government mega projects and annual development activities had created stagnation across the steel and cement industries.

However, Amirul said the new government had taken up several development projects that could improve business prospects in the sector in the coming days.

'Remainder of the year will remain challenging'

Multinational cement manufacturer LafargeHolcim Bangladesh reported Tk112.2 crore in profit for Q1, down 19% from Tk139.1 crore in the same period last year.

The company said rising energy costs and persistent inflation, driven by global disruptions linked to the Middle East crisis, weighed on its bottom line.

It said the rest of the year would remain challenging due to high inflation and energy costs but remained optimistic after implementing cost-efficiency measures and strategic pricing adjustments.

Chief Executive Officer Iqbal Chowdhury said the company remained focused on resilience through innovation and operational efficiency despite ongoing inflationary pressures.

He said specialised products such as Water Protect and Fair Face continued to perform strongly, strengthening the company's market position and customer confidence.

Several factors contributed to weak profitability

Abdullah Al Faisal said the economy was going through a transition following political changes, while uncertainty from the Middle East conflict had weakened business confidence.

"The banking sector also remains vulnerable, with non-performing loans above 32% and distressed loans estimated at around 59% of total loans," he said.

He added that the ongoing Asset Quality Review (AQR) had revealed further weaknesses in banks' balance sheets, including negative CRAR. Although higher interest rates initially increased banks' income, rising bad loans had sharply reduced profitability.

"Performance varied across sectors. Food & Allied companies performed strongly as demand for essential goods remained stable. However, Travel & Leisure suffered the biggest decline due to weaker consumer spending. Engineering companies saw stronger sales because two Eid festivals fell within the quarter, but higher costs limited profit growth," he said.

Faisal said the construction sector remained weak due to slower ADP implementation during the transition period and a slowdown in the real estate market.

Tk75,936cr revenue in Q1

According to the data, companies reported aggregate revenue of Tk75,936.18 crore in Q1 2026, representing a marginal year-on-year decline of 0.5% from Tk76,355.63 crore.

The banking sector emerged as the top revenue generator, earning Tk24,707 crore. It was followed by fuel and power at Tk14,601.74 crore, engineering at Tk11,543 crore, telecommunications at Tk6,414.42 crore, pharmaceuticals and chemicals at Tk6,137 crore, and textiles at Tk4,480.68 crore.

Textile profits shrink 76%

As of 20 June, 34 of 58 listed textile firms published quarterly results, reporting combined profits of Tk45 crore, down from Tk192.50 crore in the same period last fiscal year.

Half of these firms, or 17 companies, reported losses, with some continuing to remain in the red and others falling into losses for the first time.

Earlier, Rakibul Alam Chowdhury, former vice-president of BGMEA, told TBS, "We have experienced negative growth for most of the past 10 months. April showed some improvement, but the overall trend remains negative."

He said global conflicts, persistent inflation and higher retail prices had weakened consumer purchasing power in major markets, reducing sales and shrinking apparel orders.

"When major competitors receive policy support and incentives to cushion external shocks, our exporters face growing pressure without similar assistance. This has affected competitiveness and order flows," he added.

The United States is working to reduce its trade imbalance with Bangladesh while strengthening bilateral trade and investment, US Commercial Counsellor Paul Frost said today (1 July), as business leaders in Chattogram called for greater American investment in the city's planned Free Trade Zone and strategic infrastructure projects.

Speaking at a meeting with leaders of the Chittagong Chamber of Commerce and Industry (CCCI) at the World Trade Centre in Chattogram, Frost said the US embassy's priority is to promote business and investment between the two countries by connecting American and Bangladeshi businesses, according to a press release.

"The objective of today's discussion is to promote trade and investment between the United States and Bangladesh, establish business-to-business connections and better understand the expectations of the business community," he said.

Frost encouraged Chattogram's business community to work jointly with the American Chamber of Commerce in Bangladesh to strengthen commercial engagement with US companies.

He also said the US government is working with the Bangladesh government and the Bangladesh Investment Development Authority (Bida) to facilitate investment, adding that improving the ease of doing business remains critical to attracting foreign investors.

CCCI President Mohammad Amirul Haque said the US is Bangladesh's largest export market for ready-made garments and stressed that the time is right to deepen bilateral economic relations.

He invited US companies to invest in Bangladesh's economic transformation projects, including transport corridors, expressways, MRT systems, ports and other infrastructure.

Highlighting Chattogram's strategic location, Amirul urged US investors to explore opportunities in the proposed Bay Terminal, Matarbari Deep Sea Port and Sonadia Deep Sea Port projects.

He also called on US businesses to invest in the government's planned Free Trade Zone in Chattogram, saying investors would be able to operate with a single trade licence under a simplified regulatory framework.

"Bangladesh is not seeking charity. We want a strong economic partnership based on mutual respect and shared interests where both countries benefit," he said.

US Deputy Political and Economic Counsellor David Moo said Washington is working with Bangladesh to improve the business environment and remove trade barriers.

"There are already many American companies operating in Bangladesh, while others are interested in entering the market. Removing business obstacles will help expand trade and commercial engagement between the two countries," he said.

Other speakers noted that US machinery and technology enjoy a strong reputation in Bangladesh's manufacturing sector and called for greater American participation in local business summits.

They also urged US investment in Bangladesh's agriculture sector, bonded warehouse facilities, cotton and man-made fibre industries.

Business leaders further called for easier visa and passport services for Bangladeshi students and Bangladeshi-origin US citizens, establishment of a US consular office in Chattogram, direct Dhaka-New York flights, and US investment in the proposed Dhaka-Chattogram Expressway.

Bangladesh Bank (BB) has outlined a long-term roadmap to tackle non-performing loans. The plan centres on stronger supervision, better governance and quicker recovery of distressed assets.

"The level of non-performing loans (NPLs) remains a key focus area for the banking sector, affecting bank profitability, capital adequacy ratios, liquidity distribution, and the transmission efficiency of monetary policy," the central bank said in its latest Monetary Policy Statement (MPS) for H1FY27 published yesterday (30 June).

At the end of March this year, total NPLs in the banking sector stood at Tk5,88,704 crore, accounting for 32.26% of the total Tk18,24,668 crore in disbursed loans.

Bangladesh Bank projects 6.1% GDP growth for FY27, below govt's 6.5% target
Announcing the MPS, BB Governor Mostaqur Rahman said, "The central bank has taken an initiative to reduce non-performing loans within the next 18 months. As part of this, special opportunities are being provided for repaying bad loans under the Exit Policy, which has been effective in countries like Ukraine and Türkiye."

The MPS report sets out a seven-point long-term roadmap for NPL management based on structural reforms:

First, the central bank will strengthen Risk-Based Supervision (RBS) and execute bank-specific Asset Quality Reviews (AQRs), with a primary focus on institutions showing specific governance or concentration risks.
Second, capital restoration and provisioning plans will be linked directly to asset recovery metrics, dividend restrictions, and supervisory actions.
Third, loan restructuring frameworks will be reserved for viable enterprises, while non-compliant borrowers will face appropriate legal and regulatory measures.
Fourth, asset recovery for large exposures will be accelerated by establishing specialized internal recovery units, strengthening institutional legal departments, fast-tracking Artha Rin Adalat (Money Loan Court) proceedings, and optimising collateral enforcement frameworks.
Fifth, the central bank is operationalising a structured Emergency Liquidity Assistance (ELA) framework to ensure liquidity support is distinct from capital restructuring.
Sixth, the implementation of the Bank Resolution Act 2026 and the Deposit Protection Act 2026 will provide tools to manage weak institutions, protect retail depositors, and mitigate moral hazard.
Finally, BB will support the operationalisation of the ECL framework by enhancing data infrastructure and credit risk modeling capabilities to identify changes in credit quality early.
Meanwhile, the MPS statement added that during FY26, the central bank introduced updates to its regulatory and supervisory frameworks to manage asset quality.

Regulatory guidelines were updated to allow the write-off of bad debts with limited recovery prospects to improve balance sheet clarity.

Stressed borrower frameworks were adjusted to permit the restructuring of classified portfolios for up to 10 years, including a grace period of up to two years, with specific support facilities extended through June this year.

In December 2025, updated loan classification and provisioning directives were issued to strengthen credit discipline.

To support credit flow to employment-intensive sectors, BB permitted lower provisioning ratios on standard and Special Mention Accounts within agriculture and CMSMEs through December 2026.

The report also underscored the central bank's medium-term strategy to replace the existing rules-based provisioning methodology with the Expected Credit Loss (ECL) framework under International Financial Reporting Standard (IFRS) 9, with full implementation expected in 2027.

US President Donald Trump recorded around $1.2 billion in income from his family’s cryptocurrency activities during his first year back in office, according to financial disclosures released on Tuesday.

According to the 927-page document released Tuesday by the US Office of Government Ethics, Trump received nearly $550 million from his ties to the startup World Liberty Financial in 2025.

World Liberty Financial (WLF) was co-founded in September 2024 by Trump’s sons and the son of Trump’s Middle East special envoy Steve Witkoff.

The filings also mention $635 million in royalties received under a licensing agreement related to the $TRUMP cryptocurrency, launched just hours before the president’s inauguration in January 2025.

The president’s crypto activities are the main reason for the near tripling of his personal fortune, which rose from $2.3 billion to $6.5 billion between 2024 and 2026, according to Forbes.

The former real estate developer is regularly accused of conflicts of interest, in particular for having invested in the cryptocurrency industry while as president taking several measures to deregulate the sector, causing asset prices to soar.

The White House rejected any ethical concerns.

“Neither the President nor his family has ever engaged -- or will ever engage -- in conflicts of interest,” Principal Deputy Press Secretary Anna Kelly said in a statement to AFP.

Kelly said Trump had “proudly made the United States the crypto capital of the world.”

“All actions by President Trump and his administration are taken in the best interest of the American people -- and any so-called ‘reporters’ pushing otherwise are recycling the same, tired, false narrative that Democrats and the legacy media have been pushing for a decade,” Kelly added.

A 1978 law requires the president and vice president of the United States to declare their income as well as their assets.

First Lady Melania Trump’s income is also set out in her husband’s financial disclosure.

It includes more than $10 million for an Amazon documentary about her, and more than $500,000 for her book “Melania.”

The disclosures make several mentions of World Liberty Financial, which issued its own cryptocurrency, WLFI, whose initial sale brought in $550 million.

Since becoming tradable in September 2025, its value has plummeted from 46 cents per unit to its current price of 6 cents.

Trump and his three sons also obtained, via an intermediary company, DT Marks Defi, an additional 22.5 billion WLFI, currently worth around $1.3 billion.

In April 2025, WLF also marketed its stablecoin -- a digital currency whose value is pegged to a traditional currency, in this case the dollar.

Beyond the income derived from WLF and its cryptocurrency, Trump has also earned several million dollars from shares in various publicly listed companies active in cryptocurrencies, such as the Coinbase exchange platform.

There are also earnings from Trump-branded goods, ranging from clothing to bumper stickers -- and more than $208,000 from bibles sold in partnership with country singer Lee Greenwood.

The president’s assets are held in a trust managed by his son, Donald Trump Jr.
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But its bylaws stipulate that the entity can be dissolved at any time, which means the billionaire could regain control of it as soon as his second term ends in 2029.

Vice President JD Vance meanwhile also saw significant earnings since becoming Trump’s deputy. He reported royalties of between $1 million and $5 million from his 2016 memoir “Hillbilly Elegy.”

Remittance inflows hit more than $35.5 billion, a new high, in the just-concluded 2025-26 fiscal year, thanks to Bangladeshis abroad who sent money back home to their families.

Overall remittance inflows grew 17.30 percent year-on-year from $30.3 billion recorded in the previous fiscal year, helping the country better manage its external accounts amid declining exports, according to provisional data from the Bangladesh Bank (BB).

The government has unveiled one of the most comprehensive fiscal packages for Bangladesh's capital market in recent years, cutting taxes on dividend income, removing investment limits for mutual fund tax rebates and easing listing requirements in a bid to attract fresh investment and deepen the market.

The reforms, incorporated in the finance bill passed in parliament today (29 June), are expected to benefit retail investors, institutional investors, asset managers and companies seeking to raise funds through the stock market.

At the heart of the reforms is a major overhaul of dividend taxation, a move designed to encourage a long-term, dividend-centric investment culture.

Under the new law, the tax rate on dividend income for individual retail investors has been slashed to a flat 15%, which will now be treated as a final tax liability, according to the official of the National Board of Revenue (NBR).

Previously, while tax was deducted at source at 10-15%, investors were often subject to additional payments during their final income tax assessments based on their respective tax slabs. This complexity often led to higher effective tax burdens and discouraged investors from holding high-yield stocks.

By making the 15% deduction final, the government has simplified the process and increased the "take-home" returns for ordinary shareholders, said a senior officer of an asset management company.

Corporate investors have also received a reprieve, with the tax rate on their dividend income lowered to 20%. This provides a massive sigh of relief for market intermediaries such as merchant banks and brokerage firms, who were previously facing corporate tax rates as high as 37.5% on their dividend earnings.

Earlier, the finance minister withdrew the 20% tax on dividend income for corporate in his budget proposal. Following the criticism over this issue, he scrapped the decision.

Furthermore, all income derived from zero-coupon bonds will remain 100% tax-free, ensuring that fixed-income instruments remain a competitive component of a diversified portfolio.

The mutual fund industry, which has long struggled under restrictive investment caps, is set for a major revival as the government has completely scrapped the Tk5 lakh investment ceiling required to qualify for tax rebates.

Industry insiders believe this is a game-changer that will allow larger pools of institutional and individual capital to flow into the asset management sector.

Shahidul Islam, chief executive officer of VIPB Asset Management Company Limited, told TBS that this change is one of the most awaited reforms for the industry.

He noted that the withdrawal of the threshold, combined with the new dividend tax structure, will significantly boost investor appetite for mutual funds.

For corporate entities, the budget has introduced a "triple-tier" incentive structure that could reduce a company's tax burden by up to 7.50%. In a fundamental departure from previous policy, the government has removed the mandatory requirement to offload a minimum of 10% shares to qualify for a listing tax rebate. Now, any company can enjoy an immediate 2.5% corporate tax cut simply by joining the stock exchange.

To encourage greater public ownership, an additional 2.5% rebate is offered if a company offloads 10% or more of its shares. A final 2.5% "transparency rebate" is available to any firm – listed or non-listed – that executes all business transactions through banking channels.

Salim Afzal Shawon, head of research at BRAC EPL Stock Brokerage, described these measures as a clear signal of the government's positive intentions. He emphasised that the cumulative tax benefits would make public listing an irresistible proposition for many top-tier private firms.

Adding to this sentiment, Ashequr Rahman, managing director of Midway Securities, noted that the simplification of dividend tax assessments removes a significant layer of mental and financial "hassle" for the investing public.

Thanking the government and NBR for the reforms, Minhaz Manna Emon, a shareholder director of the Dhaka Stock Exchange (DSE), observed that previous administrations failed to understand how small fiscal friction points could undermine the foundation of the stock market.

"This budget treats even the smallest issues with great importance," Minhaz said.

"The structural changes to the tax framework will create a sense of comfort and trust among investors. By removing the Tk5 lakh cap on mutual funds and lowering the dividend tax, the government has effectively widened the doors of the market, ensuring that small and large investors alike can participate with renewed enthusiasm."

Bangladesh Bank (BB) has directed banks to keep the weighted average spread between deposit and lending rates within 4%, in a move aimed at reducing borrowing costs and boosting industrial growth.

The Banking Regulation and Policy Department (BRPD) issued a circular today (29 June), saying the decision was taken several banks were increasing borrowing costs and constraining investment. The directive takes immediate effect.According to Bangladesh Bank, the banking sector's average spread between lending and deposit rates has widened to 5.72%, while some banks have been charging spreads as high as 7-9%.
Business leaders have long argued that such wide spreads have made bank financing more expensive, particularly for productive sectors.In November 2023, Bangladesh Bank withdrew the earlier 4% spread ceiling as part of reforms linked to the abolition of the SMART (Six-Month Moving Average Rate of Treasury Bills) mechanism in May 2024. Since then, banks have been allowed greater flexibility in pricing loans and deposits, with no specific cap on interest spreads.

In the circular, the central bank said recent observations revealed that many banks were setting lending rates significantly higher than deposit rates, resulting in what it described as "excessive" intermediation spreads.

It said the new ceiling is intended to ensure that interest rates remain at a rational level across sectors, particularly for productive industries.

However, the 4% cap will not apply to credit cards and consumer finance, where lending risks are comparatively higher.

The directive has drawn mixed reactions from bankers and economists.

A managing director of a private commercial bank said the central bank's method of calculating gross spreads does not accurately reflect the realities of individual banks.

He argued that lending and deposit rates should be determined by market conditions rather than regulatory limits.

Economists also remain divided over the effectiveness of the measure. Some warn that capping spreads could discourage lending, particularly to small and medium enterprises (SMEs), which typically carry higher credit risks and borrowing costs than large corporate clients.

Former Bangladesh Bank governor Ahsan H Mansur said imposing a rigid spread ceiling could further weaken already sluggish credit growth and make SME financing more difficult.

Instead of administrative controls, he suggested that reducing non-performing loans would naturally narrow spreads by lowering banks' operating and risk costs.

The central bank's latest intervention underscores its efforts to balance market-based interest rate reforms with the need to ensure affordable financing for businesses amid ongoing economic challenges.

India has announced lifting of the temporary restrictions on the sale of petrol and high speed diesel with effect from 1 July following easing of the supply situation.

The curbs were imposed earlier this month to prevent local fuel shortages amid disruptions to global supply chains caused by the conflict in the Middle East.

In an order issued yesterday (29 June), the Oil and Natural Gas Ministry said it had reviewed the prevailing supply situation of petroleum products and concluded that the restrictions were "no longer necessary in the public interest".
The curbs had barred industrial, commercial and institutional consumers from purchasing petrol and diesel from retail fuel stations, requiring them to source fuel from authorised bulk suppliers instead.

During the period of disruptions arising from the Middle East crisis, the government continued to shield retail consumers from the sharp increase in international fuel prices by maintaining stable retail prices of petrol and diesel.

This led to a significant price difference between retail fuel prices and those applicable to bulk consumers. Consequently, certain industrial, commercial and institutional consumers began procuring fuel through retail outlets, leading to instances of diversion, hoarding and black marketing, which affected the equitable distribution of fuel.

To address this situation, the temporary regulatory measures, introduced on 12 June, prescribed a temporary limit of 200 litres of high speed diesel per customer/vehicle per day at retail outlets and required industrial, institutional and commercial consumers to procure fuel through designated consumer pumps instead of retail outlets.

The measures were aimed at preventing black marketing, hoarding and diversion of diesel while ensuring uninterrupted availability of petrol and diesel to retail consumers.

"Following a review of the supply situation of petroleum products in the country, the government has concluded that the temporary regulatory measures are no longer required in the public interest," the order said.

The temporary measures helped ensure adequate availability of petrol and diesel across the country while safeguarding the interests of retail consumers, the order said.

Listed life insurer Meghna Life Insurance Company Limited has recommended a 15% cash dividend for the year ended December 31, 2025, matching the same payout made to shareholders the previous year.

The recommendation was approved at a meeting of the company's board of directors today (29 June), according to a price-sensitive information (PSI) disclosure filed with the Dhaka Stock Exchange (DSE).

The company's annual general meeting (AGM) will be held virtually on 20 August, 2026, with the record date set for 23 July, 2026. In line with stock exchange regulations, there was no price limit on the trading of the company's shares yesterday.

Despite the dividend announcement, the company's share price fell 2.30% to Tk59.50 on the Dhaka Stock Exchange today (29 June).

According to the disclosure, Meghna Life reported a negative net operating cash flow per share of Tk4.19 for the year ended 31 December 2025, compared with a negative Tk13.71 in the previous year. Although the figure remained negative, it marked a significant improvement in the company's operating cash flow.

The insurer also released its unaudited financial results for the first quarter of 2026, which showed that while the company remained in deficit, the shortfall narrowed substantially from a year earlier.

According to the consolidated life revenue account for the January-March 2026 period, the excess of total expenses, including claims, over total income stood at Tk45.91 crore, compared with Tk78.10 crore in the corresponding period of 2025.

The quarterly deficit thus declined by nearly Tk32.19 crore year-on-year, indicating an improvement in the company's operating performance, although expenses continued to exceed income.

Meanwhile, the company's Life Insurance Fund remained largely stable. As of 31 March 2026, the fund stood at Tk1,527.60 crore, compared with Tk1,527.30 crore a year earlier, reflecting a net increase of approximately Tk29.8 lakh.

However, operating cash flow weakened during the first quarter. Meghna Life reported a negative NOCFPS of Tk12.78 as of 31 March 2026, compared with a negative Tk10.39 in the corresponding period of the previous year.

For life insurers, the Life Insurance Fund is a key indicator of financial strength as it reflects the resources available to meet future policyholder obligations. While Meghna Life's fund remained stable, its continued operating deficit and negative operating cash flow suggest that the company is still facing financial pressures.

Nevertheless, the improvement in annual operating cash flow and the significant reduction in the first-quarter deficit indicate signs of a gradual recovery in the company's financial performance. The proposed 15% cash dividend will be subject to shareholders' approval at the AGM in August.

The government has decided to retain the tax exemption on income earned from zero-coupon bonds for individual investors, reversing a proposal in the FY2026-27 budget to withdraw the long-standing benefit.

Finance Minister Amir Khosru Mahmud Chowdhury announced the decision today (29 June) while delivering his concluding remarks before the national budget was passed in parliament.

The move comes as a relief for individual investors, whose income from zero-coupon bonds will continue to be excluded from taxable income.
A zero-coupon bond is a debt instrument issued at a discount to its face value and does not pay periodic interest. Investors earn returns by receiving the bond's full face value when it matures.

The tax exemption was introduced through the Finance Act for FY2007-08, effective from 1 July 2007, to encourage individual participation in the bond market and support the development of Bangladesh's debt market.

Under the sixth schedule of the Income Tax Act, income from zero-coupon bonds received by individuals, excluding banks, insurance companies and financial institutions, is exempt from income tax, subject to certain conditions.

To qualify, the bonds must be issued by a bank, insurance company or financial institution with prior approval from Bangladesh Bank or the Bangladesh Securities and Exchange Commission (BSEC), or by another institution with approval from either regulator.

According to the BSEC's annual report, 11 companies raised Tk6,675 crore through zero-coupon bond issuances in FY2023-24. However, the market slowed significantly in FY2024-25, with only one company raising Tk171 crore through the instrument.

Despite the slowdown, regulators continue to approve new issuances. In March, the BSEC approved City Sugar Industries to raise Tk1,300 crore and Akij Food and Beverage to raise Tk500 crore through zero-coupon bonds.

Market participants say retaining the tax exemption is expected to support investor confidence and help sustain interest in Bangladesh's corporate bond market.

The country's stock market extended its winning streak for a fifth consecutive trading session today (29 June), with late-session buying helping the benchmark index finish in positive territory despite experiencing volatility for most of the day.

The rally, which began on 23 June, has lifted the benchmark DSEX index by a cumulative 168 points over the past five trading sessions, signalling a gradual improvement in investor sentiment after weeks of subdued market activity.

At the close, the benchmark DSEX gained nearly 3 points to settle at 5,723. The DSES Shariah Index slipped 0.23 points to 1,157, while the blue-chip DS30 Index advanced 4 points to close at 2,166.

Turnover, however, eased slightly. Total transactions on the Dhaka Stock Exchange (DSE) stood at Tk1,351.52 crore, down 1.42% from the previous trading session. Despite the lower turnover, the DSE's market capitalisation rose by Tk874 crore to Tk6.97 lakh crore.

Market breadth remained positive. Of the 399 issues traded, 178 advanced, 158 declined and 63 remained unchanged.

Market participants said the session began with mild selling pressure as investors booked profits following the market's recent gains. The benchmark index remained volatile through the middle of the session as buying and selling pressure balanced each other. However, renewed buying interest emerged during the final trading hour across several sectors, allowing the market to close higher.

Among the day's top gainers, Rahim Textile climbed 8.73% to Tk225.30 per share. JMI Syringes & Medical Devices rose 7.43%, followed by IPDC Finance, which gained 6.55%. CAPM IBBL Islamic Mutual Fund advanced 6.18%, while Indo-Bangla Pharmaceuticals added 6.02%.

On the losing side, People's Leasing and Financial Services dropped 7.63% to Tk1.20 per share. Other major losers included BD Thai Aluminium, SS Steel, Familytex (BD) and Saif Powertec.

The Chittagong Stock Exchange (CSE) also experienced a mixed session. The CSCX Selective Categories Index edged up 0.8 point, while the benchmark CASPI (All Share Price Index) slipped 2.3 points at the close. Trading activity at the port city bourse remained significantly lower than that of the DSE.

In its daily market review, EBL Securities said the benchmark index managed to settle in positive territory after a modest early-session pullback, as late-session buying support emerged across the trading board following extended intraday volatility.

According to the brokerage, investors remained active on both the buying and selling sides throughout the day. While corrections in several large-cap stocks weighed on the indices during most of the session, renewed buying interest in the final hour helped the market recover and end with modest gains.

Sector-wise, the banking sector dominated turnover, accounting for 12.8% of the day's total transactions. The textile sector followed with a 12.6% share, while the general insurance sector contributed 12.4%.

Sectoral performance was mixed. The jute sector posted the strongest gain, rising 2.1%, followed by information technology, which advanced 1.2%, and general insurance, up 1.1%. On the downside, the ceramics sector fell 1.2%, making it the day's worst performer, followed by the services sector, which lost 0.8%, and the miscellaneous sector, down 0.5%.

BRAC EPL Stock Brokerage also reported mixed performances among the large-cap sectors. Fuel and power led the gainers with a 0.37% increase, followed by non-bank financial institutions (0.20%), telecommunications (0.18%) and engineering (0.07%). In contrast, the food and allied sector declined 0.37%, pharmaceuticals lost 0.26%, and banking fell 0.23%.

Meanwhile, block trades accounted for 5.5% of the day's total market turnover.

The central bank has announced a one-time offer to help borrowers who are behind on their loan payments. Under the plan, banks can make deals with these borrowers to settle their overdue loans.

Only borrowers whose loans are classified as "bad/loss" will be eligible for the facility. Those classified as "substandard" or "doubtful" will not be allowed to avail the benefit.

The goal is to reduce bad loans, make banks financially stronger, and free up money so banks can give more new loans to businesses, the central bank said in a circular today (29 June).

It allows banks to offer the facility to borrowers whose loans were classified as bad and loss of 30 June 2026, subject to board approval and banker-customer relationship. It will remain effective until 31 December 2026.
The move comes at a time when the country's banking sector is grappling with over 32% of non-performing loans, which has constrained banks' capacity to extend fresh credit to businesses.

The circular said productive sectors need greater access to financing to support investment, production and employment generation. However, the rapid growth of overdue loans has weakened banks' asset quality, liquidity management, and lending capacity.Under the facility, eligible borrowers must repay their outstanding liabilities in a single lump-sum payment to qualify for the settlement. Banks will be allowed to provide the facility based on individual borrower-bank relationships and after obtaining necessary board approvals.In the case of waiving all charged and uncharged interest for borrowers, the previously enforced conditions of 'ensuring recovery of cost of funds' and 'not waiving interest by debiting the income accounts of state-owned banks' have been relaxed.However, not all classified loans will qualify for the scheme. Borrowers whose loans were fully rescheduled between 6 August 2024 and 30 June 2026 will not be eligible for the special facility.

In addition, short-term agricultural loans and loans extended to cottage, micro, small and medium enterprises (CMSMEs) have been given priority to the programme.

Bankers say the initiative could encourage some borrowers to settle long-standing liabilities, also helping banks recover cash and improve the quality of their loan portfolios.

Classified loans are grouped into substandard (overdue 3-6 months), doubtful (overdue 6-12 months), and bad/loss (overdue 12 months or more). According to Bangladesh Bank data, there were Tk5.51 lakh crore bad/loss loans in the banking sector as of March 2026.

Governor's emergency meeting with MDs over exit policy

The central bank held a meeting today to discuss offering an exit facility for defaulters. A private bank managing director said the governor called an emergency meeting of commercial bank MDs through the Association of Bankers, Bangladesh (ABB) chairman.

He said defaulters would be able to exit the classified loan category by paying the principal amount in full. If the bank's board waives the interest, borrowers can avail the facility by repaying only the principal.

A senior Bangladesh Bank official said eligible borrowers would also be able to access fresh loans after availing the facility.

Another bank managing director said the policy aims to recover money from wilful defaulters and reduce classified loans. However, its effectiveness will become clear over time.

"Those who took loans with no intention of repaying them are unlikely to avail the facility," he said.

Md Main Uddin, banking and insurance professor at Dhaka University, said no matter how many facilities are provided, wilful defaulters will not repay loans.

"Around 60% of loans in the banking sector are currently in a risky position. Instead of broad policies, strict action against the top 20-25 defaulters through special tribunals could help recover some money," he added.

2019 special exit facility failed to deliver

To reduce non-performing loans and speed up recovery of overdue loans, the Bangladesh Bank introduced a major loan rescheduling and one-time exit facility in 2019.

Under the policy, defaulters could reschedule loans with a 2% down payment and repay the remaining amount over up to 10 years, with a one-year grace period. Banks were also allowed to waive a significant portion of accumulated interest.

The facility drew criticism after allowing large defaulters, including borrowers with loans exceeding Tk500 crore, to regularise loans by paying only 2% upfront.

Critics said many beneficiaries failed to return to regular repayment and later became defaulters again. Economists argued that repeated concessions created a culture of leniency rather than solving the banking sector's NPL crisis.

The 2019 initiative aimed to recover stuck funds and support genuine businesses. However, its effectiveness remained questionable as NPLs continued to rise in subsequent years.

The government has made it mandatory for businesses to submit proof of Business Identification Number (BIN) registration to open and operate bank accounts, obtain loans and access several other financial and regulatory services.

The provision was incorporated through amendments to the Finance Bill 2026, which was passed by voice vote in parliament today (29 June) after Finance Minister Amir Khosru Mahmud Chowdhury placed the revised bill before the House.

Under the amended law, businesses will be required to present proof of BIN registration when opening or operating current accounts or short-term deposit (STD) accounts with banks, non-bank financial institutions (NBFIs) and other financial institutions, notwithstanding any conflicting provisions in other laws.

The same requirement will apply when businesses seek loans from banks, NBFIs or other financial institutions. Proof of BIN registration will also be mandatory for renewing trade licences, opening merchant accounts with Mobile Financial Services (MFS) providers, obtaining or renewing membership of trade organisations, securing electricity and gas connections, and registering vehicles in a company's name with the Bangladesh Road Transport Authority (BRTA).

Bangladesh’s gross foreign exchange (forex) reserves crossed US$37 billion-mark on Monday after receiving around $700 million loans from different development partners.

The country’s gross forex reserves rose to $37.05 billion on the day from $36.31 billion of the previous day as disbursement of the fund by the development partners, officials said.

As per the International Monetary Fund (IMF)’s Balance of Payments International Investment Poisson Manual-six edition, generally known as BMP6, the forex reserves rose to $32.48 billion during the period under review from $31.74 billion, according to the central bank’s latest data.

Earlier on June 14 last, the country’s gross forex reserves rose to $36.10 billion from $35.80 billion of the previous day as disbursement of a fund worth $320 million by the Japan International Cooperation Agency (JICA).

Listed non-bank financial institution (NBFI) First Finance Limited has recommended no dividend for the year ended 31 December 2025 as mounting losses, negative shareholders' equity and a weakening financial position continued to weigh on the company.

The decision was approved at a meeting of the company's board of directors today (29 June), according to a price-sensitive information disclosure filed with the Dhaka Stock Exchange (DSE).

Following the declaration, the company's shares traded without a price limit. Despite this, the NBFI's stock fell 2.44% to Tk4 on the DSE.

According to the financial statements, First Finance reported a loss per share (EPS) of Tk6.66 for 2025, compared with a loss of Tk5.88 a year earlier, reflecting a further deterioration in its financial performance.

Its net asset value (NAV) per share also worsened, falling to negative Tk46.01 at the end of 2025 from negative Tk37.86 a year earlier, indicating a further erosion of shareholders' equity.

Meanwhile, net operating cash flow per share remained under pressure, standing at negative Tk0.74 for 2025 compared with negative Tk0.69 in the previous year.

The company's financial performance remained weak in the first quarter of 2026 as well.

For the January-March period, First Finance posted a loss per share of Tk1.87, compared with a loss of Tk1.27 in the corresponding period of 2025. Its net operating cash flow per share improved marginally to negative Tk0.06 from negative Tk0.09 a year earlier.

However, its net asset value per share deteriorated further to negative Tk47.88 as of 31 March 2026, compared with negative Tk39.13 in the same period of the previous year.

The company's annual general meeting (AGM) will be held on 17 September 2026 at 3pm through a hybrid format, allowing shareholders to participate both virtually and in person.

The physical meeting will take place at the Trading Corporation of Bangladesh (TCB) Auditorium in Karwan Bazar, Dhaka. The record date has been fixed for 22 July 2026.

The settlement rate for letters of credit (LCs) reached Tk123.55 per US dollar at several commercial banks yesterday, marking an increase of as much as Tk0.70 over the past 15-20 days.

Several of the country's leading business groups settled their LCs at Tk123.55 yesterday, The Business Standard understands after discussions with business groups, senior commercial bank officials and the central bank. The findings indicate that the dollar rate has been rising steadily over the past two weeks.
A senior official at one of the country's largest business conglomerates told TBS that the dollar has appreciated by about Tk0.70 over the past 15 to 20 days. "We are now paying significantly more for every dollar than before. The settlement rate used to be Tk122.85."
The business group also shared an estimate of the additional cost. It said settling a $2 million LC now costs about Tk1.4 crore more than before, substantially increasing import costs. The company warned that the higher dollar price could further fuel inflation.

A senior Bangladesh Bank official told TBS that a handful of commercial banks are driving up the dollar rate. According to the official, when one bank purchases dollars from exchange houses at higher rates, the exchange houses seek to sell dollars to other banks at the same price, creating instability in the foreign exchange market.The official added that the dollar rate also rises when a bank purchases more dollars from exchange houses than it actually needs. Since banks buy dollars from exchange houses and then sell them for LC settlements with a profit margin, higher purchase prices ultimately translate into higher settlement rates.Senior officials at several commercial banks acknowledged that a few banks are paying above-market prices for dollars, influencing the broader foreign exchange market. They said the Bangladesh Bank should take appropriate action against those institutions, noting that aggressive dollar purchases by several banks in late 2022 had similarly destabilised the market.

Bankers, on the other hand, said demand for dollars has been driven primarily by payments for government fuel imports. Although the volume of fuel imports has remained largely unchanged, the cost of settling those LCs has increased because global oil prices surged during the Iran conflict, affecting payments for fuel import contracts opened about two months ago.

They also noted that remittance inflows slowed considerably in June. During the first 28 days of the month, remittances exceeded $2.5 billion. By comparison, Bangladesh received more than $3 billion in remittances in each of the previous six months.

At the same time, export earnings fell by 7.07% year-on-year in May. According to the latest data from the Export Promotion Bureau (EPB), Bangladesh exported goods worth $4 billion in May, down from $4.73 billion in the same month last year.

Bankers said the government is currently facing heavy demand for dollars to finance fuel imports while foreign currency inflows remain comparatively weak.

They also warned that pressure on the dollar market could intensify in the coming months. Private sector credit growth currently stands at just 4.75%, indicating subdued business activity. However, as businesses expand and import demand recovers, LC openings are expected to rise, placing additional pressure on the dollar market. Bankers expressed concern over how high the exchange rate could climb under such circumstances.So far in the current fiscal year, Bangladesh Bank has purchased around $6.5 billion from commercial banks.Bankers said there is now a significant gap between Bangladesh Bank's published inter-bank dollar rate and the actual rates prevailing in the market. While the rate remains at Tk122.85 per dollar, they argue that the market is trading well above that level, making the official rate non-reflective of actual transactions. The reference rate is Tk123.18.

Yesterday, the BC selling rate quoted by various commercial banks ranged between Tk123.55 and Tk123.60 per dollar.Former Bangladesh Bank governor Ahsan H Mansur said, "Bangladesh Bank has a tendency to keep the dollar rate artificially fixed. That should not be the case because the exchange rate should be determined by the market. The price at which banks are currently buying remittances reflects the true value of the dollar. However, the central bank continues to show an average rate of Tk122.85, which is not reflective of the real market."

He added, "It is essential to activate the interbank foreign exchange market. However, the interbank market has yet to become fully functional."

The treasury head of one commercial bank said interbank foreign exchange transactions remain very limited because banks are instead buying dollars directly from exchange houses at rates between Tk123.50 and Tk123.60.

According to Bangladesh Bank data, a total of $63.5 million was traded in the interbank market over the past five working days.

The treasury head of another private commercial bank said the exchange rate published by Bangladesh Bank is significantly below the actual market rate and therefore does not accurately reflect prevailing market conditions.