United News of Bangladesh

The government is working to establish a dedicated fund to manage the seized and frozen money and shares of individuals who have embezzled funds through illicit means. This fund will be used to provide financial support to banks that have been affected by such looting, enabling them to repay their depositors. Bangladesh Bank Governor Dr. Ahsan H. Mansur said this while speaking at a press conference held at the Foreign Service Academy in the capital on Monday. He said the funds recovered from illegal activities outside the banking sector will be allocated for the welfare of the needy and poor people. Also present at the event were the Principal Advisor's Press Secretary Shafiqul Alam and the head of the Bangladesh Financial Intelligence Unit (BFIU), A F M Shahinul Islam. Earlier in the day, a meeting was held at the Jamuna chaired by Chief Adviser Professor Muhammad Yunus, to review the progress of bringing back laundered money. Following the meeting, the governor spoke in the press conference. Responding to a question regarding his (governor) remarks that those who have laundered money from the country will not be able to live in peace, Dr. Mansur said, "I don't believe they are at peace. They are hiring top lawyers. We have heard that S Alam will spend three crore dollars annually on his lawyers. This is not a sign of being at peace.” Next govt should continue financial sector reform, bring back laundered money: Governor “Recovering money and being at peace are two different things. We have managed to disrupt their sleep. It will take time to bring back the money because it will proceed following legal procedures," he added. There are 11 teams under the inter-agency task force currently investigating allegations of money laundering against top 10 business groups and the family of former Prime Minister Sheikh Hasina. Updated information regarding this was presented at the meeting. The 10 industrial conglomerates outside of Sheikh Hasina's family under investigation include S Alam Group, Beximco Group, Nabil Group, Summit Group, Orion Group, Gemcon Group, Nasa Group, Bashundhara Group, Sikder Group, and Aramit Group. Press Secretary Shafiqul Alam stated, "Another indication that they are not at peace is that an additional 125 medium-sized irregularities, involving those who have looted more than Tk 200 crore, are coming under investigation. “We are working with 20 foreign legal firms. The terms of reference for the work with these institutions are now being finalized,” he pointed out. Press secretary further informed that immovable assets worth Tk 1,30,758 crore belonging to those under investigation have been attached. Additionally, US$ 164 million held abroad and movable assets worth Tk 42,614 crore have been seized. Governor Dr. Mansur emphasized that this government is the first to decide to form such a fund because the seized money and assets are already under government control. He said that the fund's operations could begin soon, and legal amendments would be made if necessary. Funds belonging to banks will be returned to the banks, while money embezzled from other sectors will be used for public welfare. Regarding the feasibility of this, governor explained that funds deposited in banks as savings will be easily accessible. In the case of Islami Bank, shares worth Tk 12,000 to 15,000 crore belonging to the S Alam Group have been frozen. These shares will be transferred to a strategic investor, and the proceeds will go to the bank, which will be used to repay depositors. Default loans rise to Tk3.45 lakh crore until December: Governor

Bangladesh Bank Governor Ahsan H Mansur on Monday announced that the central bank is taking steps to establish a dedicated fund of Tk 800 to 900 crore to support the country’s growing startup ecosystem. “The fund will be channeled through commercial banks,” he said at a panel discussion at the inaugural session of Bangladesh Startup Connect 2025, held at the Intercontinental Hotel in Dhaka. The event is part of the Bangladesh Investment Summit 2025, organised under the theme “Empowering Innovation, Connecting Opportunities.” The event opened with a formal inauguration followed by a keynote speech from Tanveer Ali, Chairman of Constellation Asset Management Company Ltd and Independent Director of Startup Bangladesh Ltd. Four state-owned banks to remain open on Friday The panel also featured several other speakers including Faiz Ahmad Taiyeb, Special Assistant to the Chief Adviser for the ICT Division; Chowdhury Ashik Mahmud Bin Harun, Executive Chairman of BIDA; and Shish Haider Chowdhury, Secretary of the ICT Division and Chairman of Startup Bangladesh Ltd. The session was moderated by Sadia Haque, CEO of ShareTrip. Highlighting Bangladesh’s strong potential in the startup space, Governor Mansur referenced the success of bKash and expressed optimism about the country producing more breakthrough ventures. “I want to see at least 10 unicorns like bKash in Bangladesh in the future,” he said. Shish Haider Chowdhury also shared updates on the government’s preparations for a 'Fund of Funds,' aimed at mobilising investment to reinforce the startup ecosystem. “This fund will offer critical support to early- and growth-stage startups, enabling them to scale, expand globally, and build long-term sustainability,” he said. Throughout the day, the summit will host startup pitches, policy roundtables, and sector-specific sessions focusing on FinTech, SaaS, Logistics, HealthTech, AgriTech, EdTech, and AI. A key feature of the summit is the Youth Innovation Challenge 2025, organised by Startup Bangladesh. This segment features 15 standout youth-led ventures from across the country, giving young entrepreneurs a platform to pitch their ideas directly to top investors and decision-makers. Startup Connect 2025 is jointly organised by Startup Bangladesh Ltd, the ICT Division, and the Bangladesh Investment Development Authority (BIDA), highlighting the country's rapidly evolving startup landscape and its growing appeal to international investors. Your contribution to eradicating poverty truly inspiring: Chinese banker tells Dr Yunus  

Bangladesh Bank Governor Dr Ahsan H Mansur has called on businesses across the country to ensure proper compliance with regulatory frameworks, emphasising that the central bank will remain vigilant in monitoring adherence to financial guidelines. Dr Mansur made the remarks during a courtesy meeting with the Board of Directors of the Dhaka Chamber of Commerce & Industry (DCCI), led by its President Taskeen Ahmed, at the Bangladesh Bank headquarters on Thursday. Businesses’ Concerns During the meeting, DCCI President Taskeen Ahmed highlighted the difficulties faced by businesses, particularly in light of the recent hike in VAT and tax rates, which he said have intensified economic pressures. “The high bank interest rates are significantly increasing the cost of doing business,” he remarked. Taskeen Ahmed suggested that lowering interest rates could facilitate the flow of credit to the private sector and stimulate investment. NBR reforms possible, but can’t be done overnight: Mazid He also addressed the challenges encountered by small and medium-sized enterprises (CMSMEs), pointing out that complex documentation requirements for accessing the Credit Guarantee Scheme often leave entrepreneurs struggling to secure necessary funding. Proposals for Economic Relief In response to the current economic climate, Taskeen Ahmed proposed extending the loan classification period by at least three to six months to provide businesses with more time to adjust and improve repayment capabilities. Additionally, he called for relaxing some of the stringent policies surrounding the establishment of overseas business offices, which he believes would encourage export and investment activities. Bangladesh Bank's Response Governor Dr Mansur assured the DCCI delegation that Bangladesh Bank has been taking proactive measures to manage inflation and stabilise the market. He expressed optimism that these efforts would soon yield positive results, especially with inflation expected to decrease in the coming months. "We have directed banks to open letters of credit (LCs) without margin requirements to help stabilize the prices of essential goods, particularly ahead of Ramadan." Bangladesh Bank considering policy rate hike as living costs soar Regarding currency stability, Dr Mansur reassured the business community that there is no shortage of dollars in the market. He noted that while Bangladesh Bank does not control the exchange rate, it closely monitors the market to ensure dollar price stability. “The exchange rate is determined by the forces of supply and demand, but we are committed to ensuring the stability of the dollar in the market,” he said. Interest Rates The Governor mentioned that if inflation falls to around 7% by June-July 2025, bank interest rates could potentially decrease, benefiting businesses in the long term. In response to the DCCI President's request, Dr Mansur confirmed that Bangladesh Bank would review the possibility of extending the loan classification deadline and relaxing the conditions for setting up overseas business offices. Savings Certificate sales resume While expressing his commitment to supporting the business community, Dr Mansur urged businesses to strictly adhere to regulatory frameworks to ensure the stability and growth of the economy. “We will be strict about compliance, and businesses must adhere to regulations to maintain a healthy financial ecosystem,” he said. Senior officials from both Bangladesh Bank and DCCI, including DCCI Senior Vice President Razeev H Chowdhury and Vice President Md Salem Sulaiman, were present at the meeting.  

Bangladesh Bank (BB) Governor Dr Ahsan H Mansur on Saturday said that money laundering from the country has been halted due to the implementation of good governance in the banking sector. “Despite political unrest, remittance inflows have increased by $3 billion and exports by $2.5 billion over the last five months, marking a historic milestone in December,” said Dr Mansur while speaking at a programme titled ‘Branding Bangladesh: NBR and UN Peacekeepers Leading the Way’, held at a hotel in the capital on Saturday. BB Governor reveals laundered money figures, reaffirms efforts to recover  Besides, he said, the government is spending Tk 7,000 crore annually on a 2.5 percent incentive to encourage remittances through official banking channels. The Governor highlighted that remittance inflows through legal channels could rise further if intermediaries benefitting from the system are eliminated. “At present, expatriates are sending remittances equivalent to around Tk 4,000 crore on average each day. This figure could double if middlemen are removed and the skills of Bangladeshi workers are enhanced,” he said. Dr Mansur urged expatriates to send money directly through banking channels, cautioning that Dubai has overtaken Saudi Arabia as the leading source of remittances. “This is not a positive trend, as money from Saudi Arabia is being routed to Dubai before reaching Bangladesh. Certain institutions in Dubai are exploiting this opportunity to manipulate currency exchange rates.” In response to a question from journalists, the governor revealed that “a single group based in Chittagong has laundered $20 billion abroad. Efforts are underway to recover these funds, with foreign assistance being provided.” Former ED Ahsan Ullah joins central bank as advisor to the Governor He said discussions are going on with international agencies, including the Federal Bureau of Investigation (FBI) in the United States, to repatriate the laundered money. Foreign lawyers are also being appointed to support the process. Highlighting progress, Dr Mansur mentioned that 80 percent of the stolen reserve money has already been recovered, and legal proceedings are underway to retrieve the remaining funds. “I am confident that Bangladesh will win the case,” he said. Foreign Affairs Adviser Md Touhid Hossain also addressed the event.

Bangladesh's foreign exchange reserves are gradually increasing and stabilising, says Bangladesh Bank (BB) Governor Dr Ahsan H Mansur. “The reserves, which had been depleting by USD 1.3 billion per month under the previous government, are now seeing a more positive trend,” Governor Mansur said in an interview with UNB on Sunday. “A significant amount has already been paid for fertilisers, electricity, and obligations to Adani-Chevron,” he said. Less than a month in, new governor returns stability to forex market In the past two months alone, the central bank has successfully reduced deferred payments from USD 2.5 billion to USD 700 million by paying off USD 1.8 billion in outstanding liabilities for energy and other essential services. As of October 8, Bangladesh's foreign exchange reserves stood at USD 19.82 billion as per BPM6 calculations, while the gross reserves reached USD 24.97 billion. He said that the central bank's primary goal is to eliminate the remaining debt within the next two months, aiming for a debt-free status by November-December. “Once achieved, liquidity in the market is expected to improve.” By settling these dues, the financial pressure on the economy is anticipated to ease, allowing economic activities to accelerate. The central bank is preparing to secure an additional USD 10 billion in loans from various international institutions to bolster the economy. Bangladesh forex reserves soar to $19.53bn boosted by remittance The Governor, however, expressed concern over the country’s growing foreign debt, which has now reached USD 103 billion, with repayment pressures steadily increasing. Despite this, he urged patience, suggesting that it will take at least a year to navigate through the current debt challenges successfully.

Dr. Ahsan H. Mansur, newly appointed governor of Bangladesh Bank, has said his priority will be to check the high inflation and restore stability in the financial sector.  Expressing satisfaction over his new responsibility Dr. Mansur told UNB on Tuesday night that he will work with all stakeholders in the financial sector to bring back stability and put it on a solid foundation. On Tuesday night the interim government's law ministry hurriedly waved the age limit of 67 years for anyone to be appointed as governor of the central bank. Economist Mansur is now 72 years old. The last time the age limit provision got amended from 65 years to 67 years was in July 2020 to accommodate the reappointment of then-governor Fazle Rabbi.  Read more: Money launderers won’t be allowed to sleep in peace: New Bangladesh Bank Governor He believed that despite high inflation - it hit 11.66 in July in a 13-year high- the central bank under the previous administration did not give full attention to curb it.  Controlling inflation remains a top priority for any central bank.  However, money supply, exchange rate stability, and inflation control all depend on the decision of the governor. Besides, the standard of living, international trade, investment, and employment depend a lot on the decisions of the central bank of any country, he said. Dr. Mansur started his career as a lecturer, at the Department of Economics, Dhaka University in 1976. He left for Canada for higher studies in economics the same year. As a graduate student and research assistant, he was also offering regular economics courses at the undergraduate level at the University of Western Ontario, Canada (1978-81).  Dr. Mansur joined the International Monetary Fund under its Economist Program in 1981 and thereafter completed his PhD in Economics (on general equilibrium analysis) from the University of Western Ontario in 1982. During his long career at the IMF, he worked in Middle Eastern, Asian, African, and Central American countries. He worked in important functional departments (Fiscal Affairs and Policy Review and Development departments) and area departments (Middle East and Central Asia and Asian departments) of the IMF. Read more: Inflation hits 13-year high of 11.7% in July: BBS He also served as the IMF Senior Resident Representative to Pakistan from 1998-01 and as the Fiscal Advisor to the Minister of Finance, Government of Bangladesh (1989-91).

Bangladesh Bank (BB) has again decided to formulate monetary policy twice a year as per the advice of the International Monetary Fund (IMF). The central bank in a meeting with economists on Monday took the decision. As part of this, the monetary policy will start formulation for the second half of the current fiscal year in January next year, Bangladesh Bank’s chief economist Habibur Rahman, told UNB on Tuesday. “We have discussed various aspects of macroeconomics including money supply, reserve currency, and interest rates with all stakeholders including economists of the country. The current challenges of the economy were also discussed,” he added. Read more: General inflation in Bangladesh slightly down to 8.85% in Nov  As per the suggestion of the economists the central bank decided to formulate the monetary policy twice a year, he said. Monetary policy was announced twice a year since 2006. In 2019, former governor Fazle Kabir announced monetary policy formulation once a year. Accordingly, he announced the monetary policy for the fiscal year 2019-20 on July 31 of that year. The central bank announced monetary policy only once in the next financial year 2020-21 and 2021-22. Recently, the International Monetary Fund (IMF) has recommended announcing monetary policy four times a year as a condition of a getting $4.5 billion loan. Officials said the central bank announces monetary policy based on the data published by the Bangladesh Bureau of Statistics (BBS). And the statistics bureau publishes these data twice a year. As a result, Bangladesh Bank will announce the monetary policy twice a year. Read more: Business leaders oppose withdrawal of interest cap for sake of investment Bangladesh Bank will announce the monetary policy for the second half of the financial year in January.

Bangladesh Bank Governor Abdur Rouf Talukder on Saturday said it is not possible to lift the interest rate cap on bank lending (9 percent) in the current situation. He said this while speaking at a program at the Bangladesh Institute of Bank Management (BIBM) held in Mirpur in the capital. Abdur Rouf Talukder said the entire world is now facing a challenge and Bangladesh is no different. In this situation, it is not possible to raise the cap, as many economists have advised to tackle inflation, in line with most central banks around the world that are fighting inflation.  During a highly anticipated speech at the annual Jackson Hole conference in Wyoming on Friday, Jerome Powell, the chair of the US Federal Reserve, America's central bank, said they must continue to raise interest rates to stop inflation from becoming "a permanent aspect of the US economy." Read: The first Bangladeshi ship carrying jhut leaves for India "Reducing inflation is likely to require a sustained period of below-trend growth," Powell said at the meeting. Policymakers in Bangladesh however, seem to be banking on the wealth effects of growth to beat out the depreciating effect of inflation.  “If it happens (the cap is raised), the private sector will suffer. The overall supply chain will be disrupted. At the moment, there is no decision on lifting the lending cap,” the governor said. “After taking charge as the governor of the central bank, I spoke to the bank chairmen, managing directors, and chief executives. I have wanted to know the problems and possibilities of the country's banking sector from them,” he added. The BB governor hints that there is a dollar crisis and inflation problem, but both would last no longer than 2-3 months.

Bangladesh Bank governor Abdur Rouf Talukder said that banks must comply with rules in debt management and other activities assuring that the central bank will ensure good governance in the banking sector. The governor was addressing the media at Jahangir Alam Conference Hall at Bangladesh Bank Bhaban on Thursday, his second meeting with journalists after assuming office on July 12. The central bank, meanwhile, identified the weak banks and it plans to talk to them one-to-one basis. These banks will get a three-year business plan for improvement under direct observation of Bangladesh Bank, he said. Failure in one bank would affect other banks and financial institutions. So, it is better to improve banks by good governance, he pointed out. The central bank has already assured banks’ managing directors (MDs) and chief executive officers (CEOs) of support regarding good governance, he said. Deputy Governors Ahmed Jamal, Kazi Sayedur Rahman, A.K.M Sajedur Rahman Khan, Abu Farah Md. Nasser, BFIU chief Masud Biswas, executive director (ED) and chief economist Habibur Rahman, ED and spokesperson Md Serajul Islam, and senior officials were present at the event. Rouf said the central bank has taken essential policy measures for a stable exchange rate, increasing the supply of dollars, curtailing unnecessary luxury imports and increasing vigil in the exchange market. But, it will take time to get results, he said. “We should be patient.” Ruling out raising the lending interest rate, the governor said that the BB prefers demand cut, imposing higher taxes to curb the inflation rate in the domestic economy due to external effects. Read: FY23: Bangladesh Bank raises agro credit target to Tk30,911 crore He also hinted at strengthening the bond market along with enhancing the equity supply in the stock markets. Reply to a query Rouf said banks have to ensure compliance in each sector and serve every citizen, influential or ordinary. Regarding the current account deficit, the governor said, “Our economy is heavily import-oriented. Fuel oil, gas, edible oil, food and even over 60 per cent raw materials for export-oriented industries are imported. This created an imbalance or deficit.”   The BB’s chief economist Habibur Rahman gave a presentation on different policy measures that have been taken by the central bank recently to stablise currency and money flow. The BB sold USD $ 7.4 billion in the FY2021-22 to keep foreign exchange supply smooth. The BB bought $7.7 billion from banks in FY 21 due to keeping a stable forex exchange rate.  The licenses of 10 exchange houses have been cancelled and notices were sent to another 45 houses to explain their transaction report and alleged violation of  money exchange rules. The BB has increased the interest rate on non-resident foreign currency deposits (NFCD) and benchmark (Eurocurrency deposit rate) by an additional 2.25 and 3.25 per cent to attract more foreign currency deposits.

Bangladesh Bank governor Fazle Kabir on Sunday said banks have to raise attention to digitalization along with investing more to protect financial operations from hackers. He said with the development of online banking technology, threats are also being increased globally, banks have to monitor and vigilance round the clock on the security issues. Also read: Inflation, unstable forex rate major challenges: BB governor Kabir was addressing  as the chief guest the opening of two-day cyber security summit titled 'Building Cyber Resilience for Banks' to make bankers aware about cyber security and prepare them for the future. “As cybercrime grows in this age of digital banking, we must prepare ourselves to take risks. We believe that strong collaborative responses and knowledge sharing are essential to address these risks,” he added. Also read:BB to set uniform exchange rate to stabilize volatile dollar He hoped that the participants will return to their respective workplaces with sufficient knowledge about cyber security and prepare themselves for future challenges. Selim RF Hussain, Chairman of Association of Bankers Bangladesh (ABB) presided over it. It was also addressed by Debdulal Roy, Bangladesh Bank Executive Director, Md Ataur Rahman Prodhan, ABB Vice-Chairman and Sonali Bank MD, Mohammed Haider Ali Miah, ABB Vice-Chairman and EXIM Bank MD, Khondoker Rashed Maqsood, ABB Secretary-General and Standard Bank MD, among others, spoke in the function.