United News of Bangladesh

Bangladesh Bank has cleared the regulatory path for the introduction of international digital payment and money transfer services in Bangladesh allowing local banks to partner with global platforms such as PayPal and Payoneer to facilitate cross-border transactions. According to a circular issued by the Foreign Exchange Policy Department of Bangladesh Bank, authorised dealer (AD) banks can establish operational agreements with foreign digital payment service providers, international payment gateways, and aggregators following approval from the central bank. The central bank emphasised that these agreements will allow local banks to facilitate cross-border digital money transfers, remittances, service fees, e-commerce transactions, and freelancer payments through secure international channels. Central bank officials stated that the main objective of the new framework is to modernise cross-border transaction services, enhance transparency, and simplify international payment flows for freelancers, IT service exporters, and small entrepreneurs.

The remittance inflow to Bangladesh reached $2.095 billion in the first 21 days of July, marking a robust 23.5 percent year-on-year growth at the beginning of the current fiscal year 2026-27, according to the latest data from Bangladesh Bank. Bangladeshi Expatriates living in different countries remitted $1.696 billion during the corresponding period (July 1-21) of FY26. On July 21 alone, Bangladeshis sent home $78 million. BB allows unlimited royalty remittance for EZ units with BEZA nod The sustained momentum in inward remittances is expected to further strengthen the country's foreign exchange reserves, relieve pressure on the balance of payments, and support macroeconomic stability in the early months of the new fiscal year. Central bank officials attribute the strong growth to an increasing preference among non-resident Bangladeshis for legal and formal banking channels, supported by competitive exchange rates and policy measures aimed at facilitating seamless fund transfers.

Bangladesh Bank has made prior approval from the Chief Inspector of Boilers mandatory for the import of boilers and boiler components, in line with a directive from the Ministry of Industries. The central bank's Foreign Exchange Policy Department issued a notification on Tuesday, instructing authorised dealer (AD) branches of all banks engaged in foreign exchange transactions to comply with the new requirement. The notification said the fresh directive follows a memo issued by the Boiler Wing of the Ministry of Industries on June 28, 2026, and has been made effective for all boiler and boiler component imports accordingly. According to the notification, boiler manufacturers must complete construction within a maximum of 12 months from the date of drawing and design approval. Manufacturers must also hand over all documents and certificates required for registration to the buying entity after supply or sale of a boiler, and must inform the Chief Inspector of Boilers in writing of the buyer's name and address. The directive further requires that occupational health and safety of factory workers be ensured, with all relevant provisions of existing labour law to be followed. Under the new instructions, prior approval from the Chief Inspector of Boilers must be obtained through a prescribed application form before any import of boilers or boiler components. On receipt of an application, a designated officer will verify the necessary documents and submit a report to the Chief Inspector, who will grant or reject the import approval after reviewing the report. If approved, the Deputy Chief Inspector of Boilers will issue the approval letter. If an application is rejected, the applicant must be informed in writing of the reasons within seven working days, after which they may reapply upon rectifying the deficiencies and paying the requisite fee. The notification added that the concerned authority may also inspect a manufacturer's factory or production process, if required, to ensure the quality of boilers.

Bangladesh Bank on Tuesday unveiled its monetary policy for the July-December period, retaining the policy rate at 10 percent while seeking to curb inflation. Governor Mostaqur Rahman announced the monetary policy for the first half of the new fiscal year at a press conference held at the central bank. Bangladesh Bank (BB) will firmly stick to its flexible, market-determined exchange rate regime to protect the country's external sector from international shocks, expand exports, and optimize remittance inflows, official sources said. Unveiling the new Monetary Policy Statement (MPS) for the July–December period of the fiscal year FY2026-27, Mostaqur Rahman reiterated that the market-driven exchange mechanism remains a vital strategic pillar for the country's macroeconomic stability.  

Bangladesh Bank (BB) is likely to keep its key policy interest rate unchanged at 10 percent shelving an earlier plan to lower the rate amid growing global economic uncertainty triggered by the recent geopolitical tensions in the Middle East. The central bank is scheduled to announce the monetary policy on Tuesday afternoon at a press conference. The governor initially convened a meeting of the Monetary Policy Committee (MPC) with a proposal to reduce the policy rate in an effort to lower borrowing costs, encourage private sector investment and support employment generation, according to Bangladesh Bank sources. However, the central bank later dropped the plan after the sudden escalation of tensions in the Middle East raised fresh concerns over global economic stability and the risk of renewed inflationary pressures, the sources said. The decision comes despite private sector credit growth falling to a record low. In its monetary policy for FY2025-26, Bangladesh Bank projected private sector credit growth to reach 8.50 percent by June. However, official data showed that credit growth stood at only 4.75 percent at the end of April, the lowest level on record.

Bangladesh Bank (BB) has formally launched a Tk 10,000 crore special refinancing scheme to boost agricultural production and ensure food security, while revising key provisions from its initial proposal.  The new directive replaces the plan to use foreign currency reserves with domestic bank surplus liquidity and reduces the scheme's duration from five years to three. Through an Agriculture Credit Department (ACD) circular, issued today (Sunday) and sent to the Managing Directors/Chief Executives Officers of all banks, the central bank provided a comprehensive set of revised operating guidelines for the scheme. This follow-up circular replaces critical parameters previously outlined in the June 8, 2026. A fundamental shift in policy has occurred regarding the source of funding. According to today's circular, the Tk 10,000 crore scheme is no longer dependent on using foreign currency reserves. Instead, it will be constituted from the surplus liquidity of scheduled banks operating under the management of Bangladesh Bank. This change ensures the program operates strictly with domestic funds, preserving external reserves. The duration of the scheme has also been adjusted. The central bank specified that the new refinancing tenor is now fixed at three (3) years from the date of the new circular issuance, down from the original five-year proposal. All other instructions and provisions of the June 8, 2026, circular that were not specifically amended remain unchanged. Bangladesh Bank stated that these new guidelines are effective immediately. This revised approach by the central bank appears intended to streamline the refinancing process by leveraging domestic banking liquidity while supporting the crucial agriculture sector—responsible for rural employment and national food security—in a sustainable and less reserve-dependent manner.

Bangladesh Bank (BB) has announced that the usage of standardised Interoperable Quick Response (QR) code, known as "Bangla QR," will become mandatory across the country from July 1, 2026, to minimise cash transactions and transition toward a cashless economy. BB Deputy Governor Nurun Nahar made the announcement at the inauguration ceremony of "Bangla QR Transaction Campaign" held at the central bank's headquarters in Motijheel on Thursday. Chairman of Association of Bankers, Bangladesh (ABB) and City Bank Managing Director Mashrur Arefin, along with chief executives and managing directors of various commercial banks were present at the event. "The initiative to launch Bangla QR has been taken to build a cashless society by reducing cash transactions," said Deputy Governor Nurun Nahar. She explained that the system will allow retail customers to pay exact billing amounts seamlessly without the hassle of carrying loose cash or paying additional costs, making payments more convenient, secure, and safe. Deputy Governor Dr. Habibur Rahman noted that because digital channels systematically document transactions, the informal or undocumented economic footprint will shrink.  This structural shift is expected to expand the size of the national Gross Domestic Product (GDP), stimulate broader economic activities, and strengthen the country’s overall macroeconomic foundation as more citizens join the digital financial ecosystem, he said Dr. Habibur urged all commercial banks and payment system operators to integrate the Bangla QR functionality directly into their proprietary mobile applications, facilitating easy access to digital financial services for both general citizens and small-scale cottage merchants. Deputy Governor Kabir Ahmed highlighted that shifting the majority of retail transactions to digital platforms will drastically improve the country’s tax-to-GDP ratio. This formalisation, he noted, will boost the government's revenue collections and accelerate public development projects. Ahmed also revealed that a fully interoperable Instant Payment System (IPS) is slated for launch next year. Once functional, the platform will enable instantaneous fund transfers from any mobile financial service (MFS) wallet to a bank account, and vice versa. "Every step of a digital transaction leaves a distinct digital trail or footprint," Ahmed stated, adding that this real-time traceability will significantly ease the monitoring of fund flows and bolster national anti-money laundering frameworks.  According to the central bank, the primary objective of the campaign, organised by its Communications and Publications Department, is to directly demonstrate the operational efficiency of cashless frameworks in daily transactions and scale up digital payment adoption. A number of top fast-moving consumer goods (FMCG) and mega-retail brands in the country participated in the campaign. Central bank officials and employees actively participated by scanning Bangla QR codes at temporary stalls inside the bank premises to complete purchases and clear utility bills. Prominent companies participating in the event included Unilever Bangladesh, Agora (Rahimafrooz), Meena Bazar, ACI Logistics Limited (Shwapno), Unimart, Savoy Ice Cream, RFL Group, and MR. DIY.  

Bangladesh Bank (BB) Governor Md Mostaqur Rahman has expressed agreement in principle with the seven-point demand put forward by the Islami Bank Sachetan Grahak Forum to restore corporate governance in Islami Bank Bangladesh PLC, the platform said on Wednesday. It said central bank Deputy Governor Kabir Ahmed conveyed this to the forum leaders during a meeting at the central bank headquarters. Speaking to journalists after the meeting, the convener of the forum Prof Nur Nabi Manik said the governor took the matter positively. He said the deputy governor told them that the central bank chief agreed in principle with their demands. The forum chief reiterated their core position, emphasising that individuals tainted by financial irregularities, loan scams, or institutional plunder must be permanently barred from occupying positions on the board of directors or holding the post of chairman at Islami Bank. "The new board must consist entirely of highly ethical, professional, and politically neutral individuals," Manik added. He expressed optimism that rebuilding the board based on their seven-point charter will heavily reinforce depositor confidence and restore structural stability to the country's largest Shariah-based commercial lender. Forum leaders assured the central bank that once their demands are visibly implemented on the ground, they will disseminate positive messages to millions of depositors across the country, playing a supportive role in rebuilding the bank's operational legacy. The demands of the forum are formation of an independent, capable, and professional board of directors; reviewing the controversial ownership and shareholding changes of 2017 to reinstate the rights of genuine, original owners; establishing a special tribunal to fast-track the trial of those accused of plundering bank funds; immediate recovery of looted capital and confiscation of illicitly acquired assets; refraining from controversial or arbitrary regulatory decisions to curb panic and volatility across the banking sector; amending Section 18(a) of the Bank Company Act to close rehabilitation loops for financial fraudsters; and withdrawing misleading political statements regarding the bank's health made in Parliament.

Bangladesh Bank Deputy Governor Habibur Rahman on Tuesday said innovative financial instruments like Orange Bonds can play a transformative role in advancing climate resilience, women's empowerment and inclusive growth. “The Orange Bond is a historic milestone for our capital market,” he said, highlighting the country's first Orange Zero Coupon Bond issued through Sajida Foundation. The deputy governor was speaking as chief guest at the 'Orange Economy Summit 2026: Dhaka', jointly organised by Dhaka Stock Exchange (DSE), Impact Investment Exchange (IIX) and Policy Research Institute of Bangladesh (PRI) at the DSE premises He reaffirmed Bangladesh Bank's full backing to attract $100 million in Orange investment by 2030, underscoring the importance of positioning Bangladesh as an attractive investment destination through inclusive and sustainable financing. The summit centred on the potential of a $100 million investment under IIX's Orange Climate Fund for Bangladesh, development of the country's Orange Capital ecosystem, and the role of capital markets in achieving long-term, inclusive and sustainable economic growth. In her welcome address, DSE Managing Director Nuzhat Anwar expressed satisfaction at hosting the summit, saying economic growth must go hand in hand with social inclusion and climate resilience to ensure sustainable development. She noted DSE's commitment to sustainable finance, corporate governance and implementation of international standards, adding that such initiatives would help raise awareness of Orange economy instruments and strengthen the regulatory framework for capital market development. IIX Founder and CEO Professor Durreen Shahnaz said building a robust and inclusive financial market is indispensable for Bangladesh's long-term sustainable growth amid its LDC graduation. She identified vast investment potential in the readymade garments, agriculture, energy transition and financial services sectors, saying deepening the capital market is essential to unlock that potential. Describing the 'Orange Movement' as a global initiative to build inclusive capital markets, Shahnaz said IIX is working to mobilise $10 billion by 2030. She disclosed that IIX has invested over $18 million in Bangladesh over the past decade and announced that $100 million has been earmarked for Bangladesh under IIX's $1 billion Orange Climate Fund. PRI Chief Economist Ashikur Rahman presented the keynote paper titled 'Building an Orange Capital Ecosystem in Bangladesh', noting that the country must overcome challenges including job creation, climate risk management and increased investment in productive sectors to achieve LDC graduation and a trillion-dollar economy. Ashik said the groundwork has already been laid through Green Bonds, Social Bonds and the country's first Orange Bond, and what is now needed is policy support, market-driven innovation and attraction of international capital to build a strong Orange Capital market. The summit concluded with a session on 'Experience Sharing from Emerging Markets', moderated by IIX Senior Director (Research and Government Relations) Priyank Tiwari. IIX Indonesia's Antya Widita and IIX Director of Impact Partners (Investment Banking) Jonathan Abeywickrema shared experiences on inclusive financing, sustainable investment and the role of Orange Capital in capital market development across emerging economies, while also exploring how international best practices can be applied in the Bangladesh context.

Bangladesh Bank (BB) has provided an emergency liquidity support of Tk 2,500 crore for Islami Bank Bangladesh PLC to help the Shariah-based lender mitigate its severe cash crunch and resume suspended clearing operations. The central bank approved the liquidity support on Sunday, allocating the special fund directly into Islami Bank’s current account maintained with the BB, according to sources in both institutions. Following the financial injection, the bank's halted cheque clearing system has resumed. According to a top executive at Islami Bank, the bank has been facing an exceptional spike in cash demand. "Deposits are almost non-existent at the moment, while everyone is rushing to withdraw their funds," the official said on condition of anonymity. The liquidity strain escalated further following recent leadership shifts and administrative disputes. Before Eid-ul-Azha holidays on May 24, bank's then-chairman M Zubaidur Rahman resigned. Later that evening, former Bangladesh Bank Deputy Governor Md Khurshid Alam was appointed as an independent director and new chairman of the bank. Currently, five independent directors on Islami Bank's board, including the chairman, are central bank appointees. Following these changes, protests broke out under the banner of the "Islami Bank Sachetan Grahak Forum", pressing a seven-point demand that includes the removal of the new chairman. The unfolding situation at Islami Bank also triggered heated debates between treasury and opposition benches in Parliament. Amid growing public discourse, panic withdrawals intensified among clients, prompting Islami Bank to formally seek Tk 10,000 crore in emergency financial assistance from the central bank. Sunday's Tk 2,500 crore fund injection marks the first major deployment to stabilise the institution.