Well above the European Central Bank’s two-percent target, the figure from the EU’s statistical office was up sharply from 2.9 percent in July and in line with forecasts by analysts for Bloomberg.

“Looking at the main components of euro area inflation, energy is expected to have the highest annual rate in August,” Eurostat said, noting that energy prices were up 14.3 percent in August after rising 10.3 percent in July.

The US war against Iran and the near-total closure of the Strait of Hormuz, a key energy trade route, have sent global energy costs soaring.

“Inflation should remain well above target into next year, as higher gas and food prices put additional upward pressure on the index,” said Leo Barincou of Oxford Economics. The ECB is expected to again raise interest rates at its meeting on September 10 to tame the surge in prices, after a first hike in June.

The bank’s chief, Christine Lagarde, warned in July that the energy shock from the conflict “could intensify further”.

“The ECB will hike again next week,” said Kamil Kovar at Moody’s Analytics, adding that the jury was out on whether the decision would be followed by another increase in December.

“The broad-based increase in energy prices -- not just transport fuel, but also gas and now even electricity -- is playing in hawks’ favour,” he said.

Core inflation, which strips out volatile energy and food prices, has remained largely stable in recent months.

In August it slowed back to 2.4 percent after accelerating slightly to 2.5 in July.

Food and drinks inflation in August remained at 1.2 percent, the same level recorded last month. Eurozone inflation was last above 3.3 percent in September 2023, when it stood at 4.3 percent.

At the time consumer price rises were slowing after reaching a peak of 10.6 percent in October 2022, driven by surging energy prices caused by Russia’s invasion of Ukraine.

The country's capital bourse extended its winning streak for a second consecutive session today (2 September), driven by broad-based bargain hunting on beaten-down shares, pushing daily market turnover up 22.5% to Tk731 crore.

The benchmark DSEX Index of the Dhaka Stock Exchange (DSE) rose 23 points, or 0.41%, to close at 5,660 points, compared to 5,637.31 points in the previous session.

The Shariah-compliant DSES Index advanced 4.70 points, or 0.42%, to 1,135.12, while the blue-chip DS30 Index gained 3.45 points, or 0.16%, to finish at 2,125.49.

DSE data showed the market opened strong, hitting an intraday peak of 5,673 points before temporary selling pressure dragged the index down to 5,644 points by mid-morning. The index later regained momentum to close in positive territory, marking the second straight day of gains.

Late-session accumulation in textile and insurance stocks secured a green close at the end of the trading session.

Out of 395 issues traded, 239 stocks advanced, 92 declined, and 57 remained unchanged, the data showed.

EBL Securities, in its daily market commentary, said the benchmark index of the capital bourse extended its recovery for a second consecutive session, as opportunistic investors sustained broad-based bargain hunting, accumulating beaten-down scrips at perceived attractive price levels, although broader investor sentiment remained cautious amid persistent domestic concerns.

The market opened on an optimistic note, although early gains were pared back as the benchmark index faced intermittent selling pressure, with investors remaining active on both sides of the trading fence. However, sustained buying interest, particularly in the textile and insurance sectors, persisted throughout the session, ultimately enabling the market to close higher, it said.

On the sectoral front, Textile sector stocks accounted for the highest share of turnover by 39.5%, followed by general insurance by 13.1% and Pharma sector stock by 10.3%.

Sectors mostly posted positive returns, where General Insurance by 2.3%, Textile 2% and Tannery 1.4% exhibited the highest return, while only Financial Institution and Jute sector stocks exhibited marginal correction on the bourse.

The port city bourse, CSE, ended in positive terrain. The Selective Categories' Index (CSCX) and All Share Price Index (CASPI) advanced by 31.7 points and 56.2 points, respectively.

The government is set to sign a $1.0004 billion loan agreement with the Islamic Development Bank (IsDB) on Thursday (3 September) to finance the construction of the second unit of Eastern Refinery Limited (ERL) in Chattogram, a major project aimed at strengthening Bangladesh's energy security.

The agreement will be signed at the Cabinet Division at the Secretariat in the presence of Prime Minister Tarique Rahman, according to officials at the Economic Relations Division (ERD).

IsDB Group Chairman Muhammad Sulaiman Al Jasser is currently visiting Bangladesh to attend the signing ceremony.

Govt okays $1b stringent IsDB loan for Eastern Refinery expansion
The loan was approved at a meeting of the Standing Committee on Non-Concessional Loan (SCNCL), chaired by Finance Minister Amir Khosru Mahmud Chowdhury, on 7 July.

Although the financing comes with highly non-concessional terms, ERD officials consider the refinery expansion project economically viable and strategically important for the country's energy security.

The IsDB financing will be provided under two separate facilities. The first, Forward Lease 1, will provide $520.59 million, while Forward Lease 2 will provide $483.10 million. An additional $0.6 million technical assistance grant will also be provided under the first facility.

Loan carries 5.45% markup

The loan carries a relatively high financing cost, with the total markup rate calculated at 5.44627%.

According to ERD documents, the calculation was based on the six-month Term Secured Overnight Financing Rate (SOFR) of 3.84627% on 5 July 2026, with a 1.60 percentage-point spread and risk premium added to the benchmark rate.

The total repayment period will be 20 years, including a five-year grace period. The remaining amount will be repaid in semi-annual instalments over 15 years.

The grant elements of Forward Lease 1 and Forward Lease 2 stand at negative 3.12% and negative 3.24%, respectively. As a result, the ERD has classified the financing as "highly non-concessional".

Refining capacity to triple

The Eastern Refinery modernisation and expansion project is expected to significantly increase the country's domestic oil-refining capacity.

ERL currently has an annual refining capacity of 1.5 million tonnes. Once the modernisation and second-unit expansion are completed, the refinery's capacity is expected to increase by another 3 million tonnes to 4.5 million tonnes annually.

This would triple ERL's existing refining capacity and help reduce Bangladesh's dependence on imported refined petroleum products.

The overall cost of the project has been estimated at Tk31,000.57 crore. Of this, Tk18,566.74 crore will come from government financing, while Bangladesh Petroleum Corporation (BPC), the project's implementing agency, will provide Tk12,433.83 crore from its own funds.

The project implementation period has been set from January 2025 to June 2030.

Project cost revised downward

The Eastern Refinery Modernisation and Expansion Project was initially approved conditionally by the Executive Committee of the National Economic Council (Ecnec) on 23 December last year at an estimated cost of Tk35,465 crore.

Following further scrutiny and assessment after the Ecnec approval, the project cost was reduced by Tk4,465 crore to Tk31,000.57 crore.

Revenue from Taiwan’s semiconductor chip sector is expected to soar 40 percent this year, a top industry official said Wednesday, driven by skyrocketing demand for artificial intelligence technology.

The island is a global powerhouse in the manufacturing of chips that are used in everything from smartphones to electric vehicles, with nearly all of the most advanced ones made there.

Taiwan’s dominance of the critical sector has been a source of friction with the United States, with President Donald Trump accusing it of stealing the American chip industry and pressuring Taiwanese companies to build more on US soil.

“We are in a new era of the semiconductor industry from a technology point of view,” Wu Chih-i, president of the Taiwan Semiconductor Industry Association, said at the opening of the SEMICON expo in Taipei, noting AI has pushed the development of new technology. “This year Taiwan’s semiconductor industry performs even better. Our total revenue is projected to be close to US$300 billion. That’s more than 40 percent growth over last year,” Wu said.

However, he added that energy supply, talent and cyber security were “becoming more critical” for the industry and “no single country” could dominate the chip supply chain. “Continuous progress will require even closer semiconductor collaboration between many countries,” Wu said. Governments and tech giants are pouring billions into building data centres that can train and run AI tools such as chatbots, image generators and agents that can execute tasks.

This has turbocharged earnings of companies such as Taiwanese chip giant TSMC and driven global stock markets to all-time highs this year. But there are concerns over when that investment will see a return, and warnings that company valuations have gone too far.

This would be the decade of AI, said Ajit Manocha, the head of SEMI, a global industry association for chip design and manufacturing supply chain.

But Manocha noted that the world was in the “early innings” and there would be “a lot more challenges” with the technology.

“It’s not going to be a straight line,” Manocha told SEMICON.

“We’re going to have to learn how to deal with and navigate through the new opportunities and new headwinds.”

Shares of Saiham Textile Mills have more than doubled in just 25 trading sessions, even as the company maintains it has no undisclosed price-sensitive information to explain the rally and despite one of its two production units remaining shut for Balancing, Modernisation, Rehabilitation and Expansion (BMRE) work.

Data from the Dhaka Stock Exchange (DSE) show that Saiham Textile shares closed at Tk18.80 on 26 July. By today (2 September), they had climbed to Tk38.20, gaining Tk19.40, or 103.19%.

The stock gained another Tk3.20, or 9.14%, today alone. A total of 7.13 million shares changed hands on the day, with trading activity also rising significantly in recent weeks.

Such an unusual movement of Shares of Saiham Textile Mills has attracted the attention of the Bangladesh Securities and Exchange Commission (BSEC).

Abul Kalam, executive director and spokesperson of the BSEC, told TBS that the regulator has taken note of the unusual price and trading volume.

"The matter has come to the BSEC's attention. We will examine why the price and trading volume are rising unusually. If any irregularities are found, action will be taken," he said.

The DSE sought an explanation from Saiham Textile on 6 August over the unusual movement in its share price and trading volume. In its response on 9 August, the company said it had no undisclosed price-sensitive information that could explain the surge.

The company had earlier given a similar response to the Chittagong Stock Exchange (CSE), denying any undisclosed price-sensitive information behind the unusual movement.

The sharp rise has come at a time when one of Saiham Textile's two production units is closed for BMRE.

The old spinning unit, established in 1993, was shut down on 1 June due to ageing machinery. According to the company, the old equipment had reduced production capacity, affected yarn quality and increased production costs.

Under the BMRE project, the company plans to sell the old machinery and install modern automated spindle machines. The factory building will also be renovated, followed by commissioning and trial production. The entire process was initially expected to take around 18 months.

Md Neyamat Ullah, company secretary of Saiham Textile, told TBS that the company had no information about the recent movement in its share price.

"We have no knowledge about the movement in the share price. There is also no undisclosed price-sensitive information at present," he said.

He added that although the shutdown was announced for around 18 months, the company was trying to complete the BMRE work earlier.

Saiham Textile has two production units. While the old spinning unit is closed, its melange unit, established through a rights share issue and commercially launched in 2013, remains operational.

Market participants said the unusual price and volume movement warrants regulatory scrutiny, particularly as one unit is closed and the company has denied having any undisclosed price-sensitive information. They said the regulator should examine whether any coordinated trading or manipulation is behind the sharp movement of the shares of Saiham Textile.

Meanwhile, the company's latest financial results do not show a major improvement that would independently explain the surge.

During July 2025-March 2026, Saiham Textile posted a net profit of around Tk4.59 crore, up about 7% from the same period a year earlier. Its earnings per share (EPS) rose to Tk0.51 from Tk0.47.

The company's net asset value (NAV) per share stood at Tk43.75 as of 30 June 2025. At Tk38.20, the stock was still trading below its NAV today.

Saiham Textile expects the BMRE project to improve production capacity and efficiency once the upgraded spinning unit resumes operations.

However, the financial benefits of the project have yet to materialise as the unit remains closed.

Against this backdrop, the 103% rise in the share price in just 25 trading sessions has raised questions among investors and market participants. The BSEC's decision to examine the unusual price and trading volume has placed the stock under closer regulatory scrutiny.

Bangladesh’s garment industry will need greater access to clean energy to remain competitive as European markets and global supply chains move towards a low-carbon future, Michael Miller, the EU ambassador and head of delegation to Bangladesh, said yesterday.

“Bangladesh has an opportunity to combine its manufacturing strength with cleaner production and position itself at the forefront of sustainable sourcing,” he said at a roundtable discussion titled “Advancing Decarbonisation for Apparel in a Changing Energy Landscape” in Dhaka, according to a press release.The event was jointly organised by HSBC Bangladesh, Apparel Impact Institute (Aii), the Embassy of Sweden in Bangladesh and the Delegation of the European Union to Bangladesh.Representatives from the government, global apparel brands, garment manufacturers, financial institutions, development partners and industry associations attended the event.

They discussed how Bangladesh can improve access to reliable and competitively priced clean energy for its apparel industry.

The sector will require $6.6 billion in investment to achieve 50 percent decarbonisation by 2030

Michael said the shift towards a low-carbon future in European markets and global supply chains would make clean energy increasingly important for Bangladesh’s garment sector.

“There is an opportunity to combine manufacturing strength with cleaner production that we encourage you to grasp with both hands, to place this country at the forefront of sustainable sourcing,” he added.

Kristina Elinder Liljas, senior director of sustainable finance and engagement at Aii, presented findings from the organisation’s research on financing the decarbonisation of Bangladesh’s apparel manufacturing sector.

The research identifies Bangladesh as one of the countries with significant potential to reduce emissions across global apparel supply chains. It also highlights the investment needed to achieve this goal.

The sector will require $6.6 billion in investment to achieve 50 percent decarbonisation by 2030, according to the research.

Md Mahbub ur Rahman, chief executive officer of HSBC Bangladesh, said, “As Bangladesh solidifies its global leadership in apparel, commercialising the energy transition is paramount. Unlocking private capital through supportive policy, scalable technology, and innovative financing will be the defining driver of future investment and competitiveness.”

The roundtable also highlighted the importance of international partnerships in supporting Bangladesh’s transition towards cleaner industrial production.

AKM Sohel, additional secretary and UN Wing chief of the Economic Relations Division at the Ministry of Finance; Olle Lundin, chargé d’affaires of the Embassy of Sweden; and Md Sarwar Hossain, deputy governor of Bangladesh Bank, also spoke at the event.

Participants said expanding access to clean energy is becoming important not only for environmental reasons but also for the competitiveness of the garment industry.

They said reliable and competitively priced renewable energy could help manufacturers reduce emissions and energy costs. It could also help them meet the expectations of international brands and markets.

Greater access to renewable energy could further help Bangladesh attract investment and strengthen its position as one of the world’s leading apparel sourcing destinations.

Randolph Brazier, global head of clean power systems and global sustainability at HSBC Holdings PLC, and Justin Wu, head of sustainability and climate change for Asia and the Middle East at HSBC, also joined the event over Zoom and presented their views on Bangladesh’s clean energy potential.

Vidya Khan, vice-president of the Bangladesh Garment Manufacturers and Exporters Association; Kim Hellström, senior sustainability manager for the Hong Kong special administrative region at H&M Group; and Olivia Windham Stewart, an independent sustainability adviser at ATTI Lead, among others, were also present.

President Donald Trump’s plan to secure direct US access to a large share of Venezuela’s vast oil reserves could end up derailing the country’s long-awaited petroleum revival by stifling competition, distorting markets and deterring the foreign investment needed to rebuild the South American nation’s battered energy industry.

The plan unveiled on Monday would see Washington acquire a 35 percent equity stake in private oil firm North American Blue Energy Partners (NABEP), which is controlled by Venezuelan businessman Alejandro Betancourt.

The company would receive a 100-year lease on 17 Venezuelan oilfields holding an estimated 65 billion barrels of reserves.

In exchange, the US would receive a guaranteed 20 percent share of production at cost and retain a right of first refusal to purchase all remaining output. The arrangement would make NABEP the world’s second-largest private oil company by reserves, behind only Saudi Arabia’s national oil giant.

NABEP, which currently produces around 170,000 barrels per day, says it aims to raise output to more than 1 million bpd in the near term.

The Trump administration argues that the arrangement is a key part of its “three-part plan of stabilization, reconstruction and democratic transition” for Venezuela after its removal of former President Nicolas Maduro in January.

The White House adds that the deal will help the US create “new robust, strategic and defensible supply chains” in the Western Hemisphere, allowing Washington to refill its depleted strategic petroleum reserves, lower fuel costs and promote the “revitalization” of US manufacturing.

The proposal has already drawn fierce criticism from Venezuela’s opposition and Democrats in the US, with some calling it akin to modern-day colonialism and others arguing that it bears the hallmarks of election-year policymaking as Trump faces growing pressure over cost-of-living concerns ahead of the crucial midterm elections in November.

What’s clear is that his proposal carries significant political, legal and commercial risks, not least the threat of hampering the recovery it’s seeking to encourage.

A TWO-TIERED SYSTEM

The US has never exercised direct control over another country’s oil resources.

Even after the US invasion of Iraq in 2003, Baghdad remained in charge of resource decisions.

At present, such an arrangement appears difficult to implement.

The US government lacks the legal mechanisms necessary to routinely purchase and dispose of crude oil below market prices.

Yet a determined administration could seek to rewrite the rules, establish new purchasing structures or create government-backed trading mechanisms to facilitate the arrangement.

The bigger problem is that such a framework could inhibit development of the wider Venezuelan oil sector.

By granting NABEP and the US government privileged commercial terms, Washington risks creating a two-tiered market in Venezuela.

Companies competing with NABEP, including Chevron, currently the largest US producer operating in the country, would be placed at a structural disadvantage because they would have to buy and sell crude at prevailing market prices while a favoured competitor would enjoy privileged market access.

Investors may question whether future projects will compete on economic merit or political connections, and whether the rules of the game may change along with the leadership in Washington and Caracas.

That is precisely the kind of market distortion that oil companies considering multi-billion-dollar investments tend to avoid.

Chevron and several other international energy companies are this week expected to sign agreements to develop new projects in Venezuela.

Those investments are based on the country’s current hydrocarbon framework, which was revised to attract foreign capital after Maduro’s ouster.

But this new source of uncertainty could significantly dampen investment appetite at precisely the moment Venezuela is attempting to reestablish itself as a major oil producer.

HERE TODAY, GONE TOMORROW

Regenerating Venezuela’s oil industry will be no easy feat.

The country’s oil production collapsed following years of underinvestment, operational mismanagement and corruption after the sector’s nationalisation in 2007, a downturn compounded by US sanctions.

Output has fallen from roughly 3.5 million bpd in the 1990s to about 1 million bpd today.

Production is initially likely to recover to around 1.5 million bpd within the next two years, according to ROI estimates, as investment gathers pace and existing fields are revived.

That would constitute just over 1 percent of global supplies today.

Moreover, Venezuelan output is forecast to reach 2.3 million bpd by 2035 and exceed 3 million bpd by 2050, according to consultancy Rystad Energy, with most of the growth coming from the resource-rich Orinoco Belt.

Yet expanding production is only part of the challenge.

Decades of neglect have left the country short of the processing facilities, pipelines, storage terminals, export capacity and power infrastructure required to support a large-scale output recovery.

Many facilities today lie in complete disrepair, requiring reconstruction from scratch or costly refurbishments.

Rebuilding those assets will require tens of billions of dollars and, crucially, the participation of multiple international companies willing to commit capital over several decades.

Introducing a new layer of political uncertainty into Venezuela — a country that has nationalized foreign oil assets twice in recent decades — could make securing the necessary financing more difficult or expensive.

A plan designed to accelerate the recovery of one of the world’s largest oil endowments could thus slow it down instead.

Bangladesh's benchmark stock index significantly underperformed its regional peers in August, posting the second-worst return among the tracked markets.

According to the "Monthly Market Wrap" for August by Sheltech Brokerage Limited, the DSEX declined 297 points, or 5.05% month-on-month, to 5,598, snapping a four-month winning streak.

Among eight tracked regional markets, only Thailand's SET Index performed worse, declining 1.75%, while India's S&P BSE Sensex fell 1.46%.

By contrast, Vietnam's VN-Index gained 5.01%, Indonesia's IDX Composite rose 4.64%, Sri Lanka's ASPI advanced 0.99%, Pakistan's KSE 100 increased 0.50%, and Malaysia's FTSE Bursa Malaysia KLCI edged up 0.06%.

The sharp divergence highlights the weakness of Bangladesh's market compared with most regional peers during the month.

DSEX falls as energy crisis overshadows reforms

Sheltech Brokerage said in its report, the DSEX's performance was primarily shaped by the energy supply crisis, uncertainty surrounding the finalisation of margin rule amendments and reports of heightened regulatory oversight.

The market initially witnessed a tug-of-war between buying and selling interest as investors assessed the energy crisis and awaited clarity on the proposed margin rule changes. This came despite Bangladesh Bank's decision to reduce the policy rate by 50 basis points, which was expected to provide some support to economic activity and liquidity, it added.

The margin rule amendment was eventually finalised in the middle of the month, offering greater flexibility to investors. However, the regulatory development failed to reverse the market's downward trajectory, read the report.

Selling pressure persisted as concerns over the energy crisis intensified, particularly over its potential impact on industrial production, corporate earnings and the broader economy. Media reports suggesting possible regulatory tightening further unsettled investors, said Sheltech Brokerage.

"Although subsequent regulatory clarification denied some of the reported potential measures, investor confidence remained weak. Selling pressure intensified toward the end of August, pushing the DSEX to an approximately two-month low."

At the same time, trading activity deteriorated sharply. Average daily turnover fell 30.16% month-on-month to Tk876 crore, while market breadth declined, reflecting broad-based selling pressure amid subdued participation.

Market insiders said retail investors remained the most active participants during the downturn, particularly on the selling side. Foreign investors were also more active in selling than buying, while institutional investors were mostly on the buying side during sessions when the DSEX declined.

The weakness was particularly evident among large-cap stocks. While gains remained concentrated in a handful of Z-category and mid-cap companies, broad-based weakness in large-cap shares exerted significant pressure on the benchmark index. The market's sectoral performance was also overwhelmingly negative.

Almost all sectors posted negative returns during the month. IT led the decline with a 9.94% fall, followed by mutual funds at 9.56%, cement at 9.08%, ceramics at 8.37% and non-bank financial institutions at 8.36%.

The monthly gainers' list was led by Tung Hai Knitting, whose share price rose 53.57%, followed by GBB Power with a 50% gain and Saiham Textile with 43.09%. Nitol Insurance and Alltex Industries gained 25.56% and 19.61%, respectively.

On the other hand, FAR Chemical suffered the steepest decline among the major losers, falling 32.79%. Sharp Industries dropped 31.91%, ML Dyeing 26.97%, AIBL First Mutual Fund 26.15% and Sunlife Insurance 25.65%.

Investors await energy relief, earnings catalysts

The market's August performance stands in sharp contrast to the gains recorded by most regional peers, raising concerns over the domestic market's ability to attract fresh investment amid persistent economic challenges.

Sheltech Brokerage said the energy crisis has emerged as a particularly important concern because prolonged shortages can disrupt factory operations, reduce capacity utilisation and eventually weaken corporate earnings. Investors are therefore closely watching developments in energy supply and their impact on businesses.

"The upcoming earnings and dividend announcements from companies with June year-end financial periods are also expected to influence market direction in the near term."

According to Sheltech Brokerage, investors will likely assess whether renewed buying interest can emerge and help the DSEX defend its 5,527–5,643-point support zone.

The market's ability to hold this range could be important in determining whether the recent correction stabilises or extends further.

Meanwhile, the combination of regulatory reforms and weak investor sentiment presents a mixed picture. The finalisation of the margin rules removed some uncertainty, while monetary easing offered another potential positive catalyst. Yet these measures have so far failed to outweigh concerns surrounding energy supply and the broader economic outlook, said Sheltech Brokerage.

The government plans to cut the minimum local ownership requirement for mobile operators to 10 percent from 15 percent, according to the latest draft of the Telecommunications Network and Licensing Policy.

The draft, seen by The Daily Star, says operators would have to maintain the 10 percent local ownership through an approved ownership structure while maintaining substantial operations in Bangladesh.

The proposal has received mixed reactions from industry players and experts. Some have welcomed the reduction, while others say the government should remove the local ownership requirement altogether.

Shahed Alam, chief corporate and regulatory affairs officer at Robi Axiata, said the earlier restriction on foreign investment in existing telecom companies was not fully consistent with existing laws or the government’s commitments.

He said the restriction did not appear to comply with the Foreign Direct Investment Protection Act or the government’s pledge not to force existing foreign investors to sell their stakes.

“We welcome the latest move to restore and reaffirm this commitment,” Shahed told The Daily Star. “This is a positive step towards maintaining policy consistency, strengthening investor confidence and reinforcing Bangladesh’s commitment to a predictable and investment-friendly environment.”

Taimur Rahman, head of corporate and regulatory affairs at Banglalink, said the company had consistently argued that a mandatory local ownership requirement could discourage foreign investment.

Greater local participation could be encouraged, he said, but it should not be compulsory.

He also called for meaningful consultation with telecom operators before any policy changes are finalised.

Major Gen (retd) Md Emdad Ul Bari, chairman of the Bangladesh Telecommunication Regulatory Commission (BTRC), said the government would make the final decision on foreign ownership.

“Fundamentally, we believe there could be majority foreign ownership at the local infrastructure layer, while ownership at the international layer should remain with local operators,” he said.

The ownership structures of the country’s three private mobile operators show their strong reliance on foreign investment.

At Grameenphone, Telenor owns 55.8 percent and Grameen Telecom 34.2 percent, while the remaining 10 percent is held by public and institutional investors, according to BTRC data.

Malaysia’s Axiata and India’s Bharti Airtel own 61.82 percent and 28.18 percent of Robi respectively. The rest is held by general investors.Banglalink is fully owned by Dubai-based VEON. Meanwhile, state-owned Teletalk has less than 3.5 percent of the mobile subscriber market.

A YEAR-LONG DEVELOPMENT

In September 2025, the interim government approved the Telecommunications Network and Licensing Policy, limiting foreign ownership in the network access licence category, which covers mobile operators, to 85 percent.

The move effectively required at least 15 percent local ownership. Robi and Banglalink had criticised the proposal and called for the requirement to be removed.

In July 2025, the CEOs of Axiata Group, Telenor Asia and VEON wrote to the interim government, urging it to reconsider the restrictions. They warned that applying the foreign ownership limit to existing investments could hurt future investment and slow the sector’s growth.

After the policy was approved, BNP leaders called for a review.

At an event in November 2025, Amir Khosru Mahmud Chowdhury, who now heads the planning and finance ministry, said the policy needed to be reviewed to protect the interests of citizens, the country and investors.

At the same event, Jahiruddin Swapan, then a member of the BNP chairperson’s advisory council and now the prime minister’s political adviser, said the policy gave foreign investors an advantage because of their technological capabilities and left local entrepreneurs at a disadvantage.

After taking office, the BNP-led government proposed raising the local ownership requirement to 20 percent, according to industry officials familiar with the matter.

The proposal, however, faced opposition from telecom operators and Malaysian government officials, the sources said.

The Daily Star could not independently verify the claims.

The government has now settled on a 10 percent threshold in the latest draft.

Abu Nazam M Tanveer Hossain, a telecom expert, welcomed the move.

“Encouraging local ownership can deepen domestic participation in the digital economy and should be a positive long-term objective,” he said.

However, he said the requirement needed to take into account the different ownership structures of Bangladesh’s mobile operators and the sector’s heavy reliance on foreign capital.

“Any mandatory threshold must therefore be carefully calibrated. Telecom remains highly capital-intensive and dependent on sustained foreign investment,” he said.

A 10 percent requirement, he added, offers a better balance between encouraging local participation and avoiding a policy that could discourage investors.

The ousted Awami League-led government is responsible for the current energy crisis and high inflation, said Rashed Al Mahmud Titumir, adviser to the prime minister on finance and planning.
“The main causes of the energy crisis are dependence on imports, failure to conduct any gas exploration, and continuing the culture of nepotism and patronage to create an oligarchic system through plunder,” he said at a seminar yesterday at the Economic Reporters’ Forum (ERF) auditorium.

The plundering of resources during the AL regime increased the money supply without a corresponding rise in production, thereby accelerating inflation, he also said at the programme jointly organised by the ERF and the Centre for Policy Dialogue (CPD).

Stating that the recent rise in LNG prices was driven by the prolonged conflict in the Middle East, the PM’s adviser said Bangladesh might not have to bear such high costs if it had sufficient domestic gas supplies and was not dependent on imports.

He called on economists and researchers not to just criticise the policies of the AL government but to also calculate and publish the cost of “inaction”, “wrongdoing”, and siphoning of funds abroad through energy-sector corruption.

Such an assessment would show the financial burden accumulated from wrong policies or inaction, and the resulting impact on investment, employment and future generations, he said.

Titumir said the BNP government is taking actions for the energy sector that should have been done earlier.

For instance, he said the government is promoting solar power, including offering to purchase solar power.

He stated that while it will cost someone Tk 8.5 per unit to install solar power, the government will buy it at Tk 10.50 per unit from them. “Through this, we want to see electricity consumers as electricity producers.”

On inflation, the PM’s adviser said some of it stemmed from normal economic growth, but excessive pressure had come from past plunder and corruption, including irregularities in imports and exports that pumped money into circulation.

A long-term target of 5-6 percent inflation while maintaining growth was realistic for a developing economy, he said.

National Professor Mahbub Ullah, meanwhile, said a “plunder economy” had developed in Bangladesh since independence, with influential groups benefiting by redistributing existing resources rather than engaging in production, hindering investment and growth.

In the past, many infrastructure projects were funded at two or three times the necessary cost, he said, letting influential groups take a cut of project funds while pumping money into the market without a matching rise in output, fuelling inflation.

“The problem is that production or output did not increase at the same rate as these investments. As a result, the excess supply of money in the market puts pressure on inflation,” said the professor.

Such an economy had contributed to the high inflation, he said, calling for moving the economy away from a plunder-based system towards production and fairness.

Mahbub also linked money stolen from banks to inflation.

He said a portion of the funds siphoned abroad were converted into dollars or other hard currency first, leaving a large amount of local currency in the domestic market.

The national professor also spoke on the rising poverty. As per the World Bank’s latest report, the number of poor people increased by an estimated 14 lakh in Bangladesh in 2025.

Mahbub said the recent rise in poverty reflected falling real incomes, pushing people to cut non-essential consumption, a trend that could weaken demand and economic activity.
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On the low tax-to-GDP ratio, the economist said it was incorrect to assume that Bangladeshis did not pay taxes. Rather, people paid various forms of informal “taxes”.

“Extortion in the country is a form of taxation. It is a kind of tax,” he said, adding that, however, that money goes to political and influential groups rather than the state treasury.

Bringing the money that people are effectively forced to pay from the hands of informal groups into the state’s revenue system could help resolve major economic problems, he said.

Md Fazlul Hoque, administrator of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), said simply raising interest rates would not be enough to control inflation.

Extortion, market control, supply-chain weaknesses and the law-and-order situation also drive up prices, he said, adding that ensuring fuel supply was crucial since energy shortages were disrupting production, particularly in oil refining and sugar processing.

The government’s top priority should be keeping operating factories open, he said, while also working to reopen closed ones.

He called for the immediate reopening of coal- and furnace-oil-fired power plants to boost electricity generation, reduce gas dependence in power generation, and free up gas for factories and other priority sectors.

Fahmida Khatun, a distinguished fellow of the CPD, said there were some areas of relief in Bangladesh’s economy in the last six months, but it remained facing several challenges.

The weak contribution of the industrial sector was a major reason behind the decline in GDP growth in the January-March quarter, she said.

Both short-term and long-term solutions are needed to address the energy crisis. Structural reforms in the energy sector are therefore also necessary, she added.

India’s economy grew at a faster pace than expected in the April to June quarter, official data showed on Monday, quelling fears that the Iran war would derail growth in Asia’s third-largest economy.

Gross domestic product rose 7.8 percent in the three months through June from the same period a year earlier, helped by a robust services sector, according to data from the statistics ministry. While this was down from a revised 8.6 percent recorded in the previous quarter, it was still above market expectations of 7.3 percent growth.

“Growth was led by services, but a key upside surprise came from manufacturing, which grew 9.2 percent,” Teresa John of Nirmal Bang Institutional Equities told AFP.

Prime Minister Narendra Modi called the figures a “herculean feat”, noting that it came despite “oil price shocks and supply chain issues”.

“Doomsayers were doomed and India bloomed... yet again!” the premier said in a post on X.

Monday’s reading cements India as the world’s fastest growing major economy, and is a shot in the arm for Modi’s government, which has been grappling with political setbacks and a series of delicate policy challenges.

The year kicked off on a strong note for India, with robust economic growth and progress on a much-delayed interim trade deal with the United States. That momentum, however, quickly stalled with a stalemate in talks with Washington. The Iran war has also raised energy costs as well as India’s import bill, stoking inflation.

New Delhi depends heavily on imports for its oil and gas needs, making it particularly vulnerable to the global energy shock caused by the conflict. Initial assessments of the Mideast turmoil prompted India’s central bank to cut growth projections for the current fiscal year. The projections were later revised slightly upwards.

The Indian government has so far shielded citizens from the worst of the war’s economic impact with limited and staggered fuel price hikes.

But analysts warn that this may not hold given renewed tensions in the Mideast and consistently elevated global crude prices. Modi has had to face rising anger in recent months over government accountability, education and a lack of well-paying jobs for the millions of graduates that join the workforce every year.

Weeks of massive student protests forced the resignation of education minister Dharmendra Pradhan in July over a national exam scandal and have placed Modi on weaker political footing ahead of key state elections next year.

Policymakers have also struggled to prop up the Indian rupee, which has been under pressure due to a range of factors including fears of a higher current account deficit and foreign investors dumping Indian shares.

India’s central bank and finance ministry have launched a flurry of steps to woo dollar inflows -- including a deposit scheme for non-resident Indians that has brought in over $65 billion as of late-August.

But this has done little to salvage the sinking rupee, which after recovering has continued to see sustained pressure.

The government has announced a special incentive package to encourage consumers to install rooftop solar power systems with battery storage, as part of its efforts to expand renewable energy and strengthen energy security.

The Ministry of Power, Energy and Mineral Resources issued a circular yesterday outlining the new scheme, which also came into effect on the same day.

Under the scheme, the cost of generating electricity from rooftop solar systems with battery storage has been set at a maximum of Tk 8 per unit. The benchmark is based on current market prices and recent tenders reviewed by the Power Division.

To make the investment more attractive, the government has added a 20 percent profit margin and an 11.25 percent premium to the production cost. This takes the final purchase tariff to Tk 10.50 per unit.

The average retail price of grid electricity is currently Tk 10.40 per unit, according to the latest decision of the Bangladesh Energy Regulatory Commission. Consumers who can install and operate the systems at a cost below the Tk 8 benchmark will be allowed to keep the savings as additional profit.

Under the Net Metering Guidelines 2025, consumers who install rooftop solar systems by February 28, 2027, and supply surplus electricity to the national grid will receive Tk 10.50 per unit for three years, until February 28, 2030.

However, systems installed after the February 2027 deadline will not qualify for the incentive.

Power distribution companies will maintain records of consumers participating in the scheme and measure how much electricity they supply to and receive from the grid. They will also manage the incentive payments.

The payments will be made directly to consumers through bank accounts or mobile financial services (MFS). Cash payments will not be allowed.

The government has also made it mandatory for all solar equipment, including panels, batteries, inverters and meters, to meet the technical standards set by the Bangladesh Standards and Testing Institution (BSTI) and the Sustainable and Renewable Energy Development Authority (SREDA).

Consumers seeking policy guidance or technical assistance can contact the Power Division’s One-Stop Service Centres or utility offices at the district and upazila levels.

Merchandise shipments from Bangladesh grew 5.43 percent year-on-year to $9.15 billion in July-August, the first two months of the current fiscal year, riding on a moderate rebound in garment exports, according to data from the Export Promotion Bureau (EPB) today.

Also, in the monthly comparison, exports of goods grew 13.14 percent year-on-year to $4.42 billion in August this year.

However, exports declined by 6.30 percent in August compared with July, when earnings stood at $4.72 billion, the EPB data also showed.

The readymade garments (RMG) sector remained the principal driver of export growth, posting a 13.92 percent year-on-year increase to $3.89 billion in August 2027.

Cumulative RMG exports during July-August also increased by 5.12 percent, reaching $7.50 billion, the EPB said in a statement.

Both major apparel segments recorded notable growth. Knitwear exports rose by 14.88 percent, while woven garments increased by 12.70 percent in August. During July-August, knitwear and woven exports grew by 6.17 percent and 3.81 percent, respectively.

Several non-RMG sectors also delivered impressive performances, highlighting the country's export diversification efforts.

Among the major gainers were jute & jute goods (37.09 percent), pharmaceuticals (28.52 percent), leather & leather goods (24.85 percent), printed materials (24.83 percent), engineering products (23.88 percent), and other footwear (15.29 percent). Cumulative growth remained particularly strong in printed materials (41.89 percent), pharmaceuticals (38.94 percent), other footwear (27.32 percent), and jute & jute goods (22.26 percent).

The United States, Bangladesh's largest export destination, registered robust growth of 26.09 percent in August and 11.90 percent cumulative growth during July-August.

The United Kingdom regained its position as the second-largest export market, followed by Germany, Spain, and the Netherlands. Among emerging markets, Türkiye (141.03 percent), the Republic of Korea (42.37 percent), and Saudi Arabia (42.09 percent) recorded outstanding export growth.

Export growth was supported by stronger demand in major markets, increased buyer confidence in Bangladesh as a reliable sourcing destination, expansion of production capacities, growing exports of higher value-added products, and ongoing efforts towards product and market diversification, the EPB also said in the statement.

The continued growth of both knitwear and woven garments, together with robust performances of pharmaceuticals, leather goods, jute products, engineering products and footwear, reflects the increasing competitiveness and resilience of Bangladesh's export sector amid a challenging global trade environment, the EPB said.

China’s installed solar energy capacity has surpassed that of coal-fired power for the first time, the national energy body said Tuesday, hailing the milestone.

China, the world’s largest emitter of greenhouse gases that drive climate change, has pledged to peak carbon emissions by 2030 and achieve carbon neutrality by 2060.

“As of the end of July this year, China’s installed solar power capacity reached 1.286 billion kilowatts,” the National Energy Administration (NEA) said.

“For the first time, photovoltaic installed capacity surpassed coal-fired power, becoming the largest power source category in China,” it added.

China, the world’s largest emitter of greenhouse gases that drive climate change, has pledged to peak carbon emissions by 2030 and achieve carbon neutrality by 2060
The country’s coal-fired power installed capacity, the energy body said, stood at 1.285 billion kilowatts.

Solar generation rose 15.5 percent on-year in the first seven months of 2026 to 802.4 billion kilowatt-hours, about one-eighth of the country’s total, the NEA said in another statement. It did not detail in these statements what the total generation of coal-powered energy was for the first seven months of this year.

The NEA said China’s installed solar power capacity and power generation “have maintained a steady trend of rapid growth”, with it playing an “increasingly prominent role” in guaranteeing electricity supply and driving the energy transition.

Coal has been China’s key power generation source for decades and a key driver of its planet-warming emissions.

But the country’s coal-fired power generation fell by nearly two percent in 2025, despite rising energy demand in the world’s largest emitter, data reviewed by AFP showed in February. It marked the first decline in six years, with some analysts saying it was the first time on record that coal generation dropped at the same time as power demand rose.

China has seen an explosive growth in its renewable installation, with coal’s share in its energy mix edging down in recent years.

The country installed a record 315 gigawatts of solar power and 119 gigawatts of wind power capacity last year -- over 80 percent of total newly installed power generation capacity, according to the China Electricity Council.

The Asian Development Bank (ADB) has approved a $175 million concessional loan to expand reliable and affordable electricity access in Bangladesh’s Chittagong Hill Tracts.

The Sustainable Energy Development and Community Empowerment in the Chittagong Hill Tracts Project will modernise power distribution networks across 26 upazilas in Khagrachari, Rangamati, and Bandarban, according to a statement from ADB yesterday.

The project will construct six 33/11 kilovolt substations, adding 80 megavolt-amperes of capacity, build 5,032 kilometres of distribution lines, and upgrade 1,874 kilometres of ageing lines.

It is expected to benefit at least 88,000 additional households, including 35,000 from small ethnic communities, while avoiding at least 19,300 tonnes of carbon dioxide equivalent emissions annually.

Although Bangladesh has achieved 99 percent national electrification, grid access remains significantly lower in the hill region, with 49 percent in Khagrachari, 43 percent in Rangamati, and 41 percent in Bandarban.

ADB said the project aims to raise grid access across the region to 68 percent by 2032.

“Reliable electricity is a powerful driver of jobs, enterprise, education, health care, and community resilience,” said ADB Country Director for Bangladesh Qingfeng Zhang.

The project also includes a $2.72 million grant from the Japan Fund for Prosperous and Resilient Asia and the Pacific. The government is contributing $36.54 million to the initiative, while the Bangladesh Power Development Board (BPDB) is providing $45.65 million.

The National Board of Revenue has been asked to find ways to meet a sharply higher revenue target as the government seeks to finance the additional expenditure arising from the new pay scale for public servants.

Prime Minister's Economic and Planning Adviser Professor Rashed Al Mahmud Titumir gave the directive at a meeting with NBR officials yesterday (1 September), according to officials present at the meeting.

The NBR has a revenue collection target of Tk6.04 lakh crore set for FY27 – nearly 46% higher than the Tk4.15 lakh crore collected in FY26. Officials said achieving such growth would be challenging as Bangladesh has never recorded revenue growth of more than 27% since independence.
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The government has instructed that the additional funds needed for the new pay scale must come from NBR revenue collection. "The adviser told us to achieve the target at any cost," a senior NBR official told The Business Standard on condition of anonymity.

Another official said, "The salaries of government employees have been increased, and we have been told that the NBR has to provide the funds."

The government announced the new pay scale on Monday, which will directly benefit around 24 lakh government employees and nine lakh pensioners. Full implementation is expected to cost the government an additional Tk1,05,580 crore annually.

NBR officials said the target would be difficult to achieve amid sluggish economic activity, production disruptions caused by gas and power shortages and declining imports, particularly of goods that generate higher import tax.

Revenue collection has already shown signs of weakness in the new fiscal year. Although September has begun, the NBR has yet to officially publish its July collection figures.

Requesting anonymity, an NBR official said VAT collection stood at Tk9,301 crore in July, down from Tk11,547 crore in the same month last year. Preliminary figures show Vat collection fell further to Tk8,362 crore in August, compared with Tk11,081 crore a year earlier.

Import tax collection has also declined year-on-year, officials said, without providing figures.

Repeated attempts to contact Adviser Titumir for comment were unsuccessful.

Experts also said the revenue target was unrealistic under the current economic conditions.

Fahmida Khatun, distinguished fellow at the Centre for Policy Dialogue (CPD), told TBS that the NBR's structural weaknesses and the prevailing economic environment would make the target difficult to achieve.

"The NBR has a capacity gap due to its structural weaknesses, while the current economic reality is not conducive to achieving the target. As a result, meeting the revenue target will be very difficult," she said.

She said the NBR had seen little meaningful reform, while the skills of its officials had not improved significantly. At the same time, effective measures had not been taken to expand the tax base, she added.

"The current government inherited an economy in poor condition. Inflation is high, business costs are elevated, investment is low, industries are contracting, and there is a fresh energy crisis. Imports have also declined. Naturally, VAT and tax collection cannot gain momentum when businesses are not doing well," Fahmida said.

The country’s leading commodity importers and processors have urged the government to ensure uninterrupted gas and electricity supply to their factories, warning that disruption could trigger serious supply-chain problems nationwide.

They made the call at a discussion on ensuring stable stocks, supply and prices of essential items held at the Federation of Bangladesh Chambers of Commerce and Industry’s (FBCCI) Motijheel office yesterday.

The country has been grappling with gas and power shortages in recent months, disrupting production across industries. The average daily gas supply fell to 2,235 million cubic feet per day in August, the lowest level recorded for the month in a decade, according to an analysis of gas-supply data from 2017 to 2026 by The Daily Star.

Shafiul Athar Taslim, director for finance and operation at TK Group, said one of the group’s two factories had been closed for two months because of the gas crisis and that this would ultimately have an impact on production.

Shafiul Athar Taslim, director for finance and operation at TK Group, said one of the group’s two factories had been closed for two months because of the gas crisis

In terms of gas allocation, he called on the government to ensure utility supplies for companies producing essential commodities just as it prioritises electricity and fertiliser production.

Otherwise, he warned supply problems could emerge during Ramadan, which is expected to begin in early February 2027.

Biswajit Saha, director of corporate and regulatory affairs at City Group, called on authorities to closely monitor the opening of Letters of Credit (LCs) for essential commodities such as sugar, wheat and lentils.

Stating that LCs are not being opened and the volume of LCs has declined, he said it was important to identify the factors behind the reduction.

With Ramadan approaching, he warned that if LCs are not opened by October or November, it may not be possible to import the required commodities within the necessary timeframe.

Biswajit also highlighted the impact of power and gas shortages on industrial production, saying many City Group industries are currently closed because of inadequate gas supply.

The gas shortage is also affecting mills that produce and supply essential commodities such as edible oil and sugar, said the City Group official, adding that this could affect the country’s ability to maintain the supply of these products.

Shafiur Rahman, adviser at Meghna Group of Industries, spoke about the recent rise in retail sugar prices by Tk 10-15 per kg.

He said around 99 percent of Bangladesh’s sugar consumption is dependent on imports, making domestic prices sensitive to developments in the global sugar market.

He also said international sugar prices have risen significantly, partly because higher crude oil prices can encourage reduced sugar output.

Golam Mawla, president of the Bangladesh Wholesale Edible Oil Traders Association, said the number of companies producing and supplying essential commodities has declined significantly over the years, from around 30-40 groups to only a few major players.

He urged the government to support these companies and address the gas, electricity, banking and regulatory problems affecting their operations.

He warned that if imports and production are disrupted and stocks fall, shortages will inevitably occur.

Keeping the upcoming Ramadan in mind, Mawla called on the government to engage directly with the major commodity companies, identify their problems, resolve gas and banking constraints, and ensure sufficient stocks in the market.

Addressing allegations that ‘syndicates’ and ‘middlemen’ are distorting the market, he said these terms should not be used as a substitute for addressing the “actual problems” in the supply chain.

Mohammad Ziaur Rahman, general manager for sales and marketing at Erfan Group, spoke about the recent price hike of aromatic rice, which is reportedly selling at up to 60 percent higher than a year ago.

Ziaur claimed that there has been a 20 percent decline in aromatic rice production compared with last year, largely due to adverse weather. Export was another factor behind the price rise.

Meanwhile, referring to the recent report of pay rise for government employees, FBCCI Administrator Md Fazlul Hoque called on essential commodities sellers not to hike prices unjustifiably.

A large portion of the population is engaged in the private sector and other professions, he noted. “Increasing the prices of essential goods such as rice, lentils, and cooking oil whenever salaries increase is by no means acceptable.”

He also said it is the social and moral responsibility of the business community to conduct business responsibly, keeping the interests of ordinary people in mind, and to play an active role in preventing unjustified price hikes.

Sri Lanka’s inflation hit a 38-month high of 8.0 percent as prices of food and other essentials rose across the board, the government’s statistics office said on Monday.

The annual inflation rate in August compared with 7.3 percent last month and 1.2 percent a year ago, according to the Department of Census and Statistics.

“This month’s inflation was mainly driven by increases in the price index for transport, housing, water, electricity, gas and other fuels,” the department said.

Sri Lanka has hiked fuel prices by about half since the Middle East war triggered a surge in global energy prices in the import-dependent nation.

The island recorded deflation of 0.3 percent in July 2025, and prices have risen steadily since then.

Sri Lanka has warned that any prolonged conflict in the Middle East could threaten its fragile economic recovery from the meltdown of 2022, when the country ran out of foreign exchange to finance essential imports.

The government told the International Monetary Fund (IMF), which approved a $2.9 billion bailout for Colombo in March 2023, that sustained high energy prices could undermine efforts to recover from the country’s worst economic crisis.

Under the IMF-backed reforms, Sri Lanka is required to ensure cost recovery in fuel and electricity pricing while limiting subsidies that strain public finances.

Sri Lanka defaulted on its $46 billion foreign debt in 2022. Colombo has been drawing down the IMF bailout loan to stabilise the country since then.

The Bangladesh Bank today (1 September) resumed buying dollars from commercial banks after a three-month gap, purchasing $50 million at Tk122.75 as ample market liquidity and weak demand pushed the exchange rate lower.

The purchase from four commercial banks was the central bank's first since 20 May, a senior Bangladesh Bank official confirmed to The Business Standard.

The move came after the dollar rate had fallen amid strong supply of foreign currency and easing demand for import payments. Commercial banks were buying dollars from remittance houses at Tk122.30-Tk122.40 this morning, while settling letters of credit (LCs) at Tk122.50-Tk122.60.

A senior commercial bank official said the central bank's purchase at Tk122.75 sent a signal that it would support the dollar rate at that level.

Bankers had expected the Bangladesh Bank to intervene when the rate fell two weeks ago. However, another $100 million in government LC payments was added after 20 August, taking outstanding government payment obligations above $1 billion. The central bank may have held back from buying dollars because of the increased payment pressure, the official said.

Another senior banker said sharp fluctuations in the exchange rate over the past 15 days had left banks and clients uncertain about where the rate would settle. Many clients were seeking forward bookings, he added.

High supply, weak demand

Commercial banks currently have ample dollar liquidity, while pressure from LC payments has eased. Weak private-sector credit growth has also reduced demand for foreign currency.

As a result, excess supply amid subdued demand has been pushing the dollar rate down. Bangladesh Bank's latest purchase appears aimed at preventing a further decline.

Demand for dollars could rise somewhat next month as the Bangladesh Petroleum Corporation (BPC) has some payments due, a banker said.

Purchase information came late

There was no prior indication in the market that the Bangladesh Bank would purchase dollars today, according to a senior banker. Commercial banks were informed around 1pm.

Normally, the central bank informs banks of such purchases by around 11:30am. As a result, banks bought remittance dollars at lower rates in the morning and settled LCs at Tk122.50-Tk122.60.

Dollar rate rises after purchase

After the Bangladesh Bank bought dollars at Tk122.75 in the afternoon, several commercial banks raised their rates for remittance collection and LC settlements to the same level.

The purchase effectively pushed the dollar rate higher and signalled that the central bank was prepared to support it at Tk122.75.

The dollar rate had been falling again since Sunday. With no earlier intervention from the Bangladesh Bank, there had been little clarity in the market over where the rate would settle, he said.

The dollar rate climbed as high as Tk123.65 late last week after falling to Tk122 about two weeks ago, reflecting unusually sharp fluctuations over the past 15 days.

Bangladesh Bank Governor Md Mostaqur Rahman has urged the government to take steps to place the proposed amendments to the Money Loan Court Act, 2003, and the proposed Distressed Asset Management Act, 2026, before the ongoing session of parliament.

The central bank governor made the request in a demi-official (DO) letter to Finance Minister Amir Khosru Mahmud Chowdhury on August 31.

Mohammad Shahriar Siddiqui, assistant spokesperson of Bangladesh Bank, confirmed the matter to The Daily Star.

In the letter, the governor said high levels of non-performing loans and distressed assets in the banking sector are hindering financial stability and economic activity.

Bangladesh Bank has already sent drafts of the two laws to the Financial Institutions Division of the finance ministry for necessary action, he said.

The proposed amendments to the Money Loan Court Act aim to make the recovery of defaulted loans more effective, dynamic and time-bound. The new Distressed Asset Management Act will provide a legal framework for managing, restructuring and resolving distressed assets held by banks and financial institutions, according to the letter.

The governor said the laws would help accelerate loan recovery, improve the quality of banks’ and financial institutions’ balance sheets, and strengthen governance in the banking sector.

He also assured the ministry that Bangladesh Bank would provide any necessary support in this regard.

The governor urged the ministry to take the necessary measures to place the two legislative proposals before parliament during the ongoing session, saying they are needed to ensure financial stability and revitalise economic activity.

Under the proposed amendments to the Money Loan Court Act, the governor suggested establishing an appellate tribunal with powers equivalent to those of the High Court; fixing reserve prices for auctions conducted under the law; appointing recovery officers to oversee execution proceedings in loan recovery cases; reducing the time limits prescribed under various sections of the Act to expedite case disposal; and increasing the mandatory deposit required to file an appeal.