Bangladesh Bank Governor Dr. Ahsan H. Mansur announced that five Shariah-based banks will be merged into one before the national election. No employees will lose their jobs, though some branches may be relocated. The decision follows major financial irregularities and high default rates — 76.69% of loans are non-performing. The merger excludes Islami Bank Bangladesh PLC, which will remain separate. Legal efforts to recover laundered money abroad are ongoing, with a focus on both court proceedings and out-of-court settlements.

Nvidia is no longer including China in its revenue and profit forecasts due to strict U.S. export controls. CEO Jensen Huang said the chances of these restrictions easing are slim in the near term. The U.S. now requires a license to export Nvidia’s advanced AI chip, the H20, to China. As a result, the company anticipates a revenue drop of up to $8 billion in Q2 (April–June) and is turning its focus to other global markets.

The escalating conflict between Iran and Israel could have far-reaching consequences for Bangladesh, especially if global oil prices surge. A potential closure of the strategic Strait of Hormuz would severely disrupt global energy supplies and affect Bangladesh’s imports across various sectors. While Bangladesh maintains limited direct trade ties with both Iran and Israel, prolonged instability in the Middle East could impact Bangladesh’s economy in three key areas: energy costs, overseas labor markets, and overall import channels. Notably, Iran has already threatened to block the Strait of Hormuz.

Bangladesh’s gross foreign exchange reserves have once again exceeded $26 billion, while net reserves have risen to $20.77 billion. The rise is attributed to an increase in remittance inflows, export earnings, and a $250 million disbursement from the World Bank. Despite floating the exchange rate, the value of the U.S. dollar remains stable.

Bangladesh’s defaulted loans have surged to Tk 4.20 trillion as of March 2025, up from Tk 3.45 trillion in December 2024 — a sharp rise of Tk 74,570 crore in just one quarter. The increase is largely tied to questionable loans disbursed under the previous government, with several banks now revealing the true extent of unpaid loans. Islami Bank, First Security Islami Bank, Global Islami Bank, Union Bank, and Social Islami Bank saw notable spikes. Currently, 24.13% of total bank loans are classified as defaulted.

Following a surge in cash withdrawals in March due to Eid-ul-Fitr spending and fears of bank instability, nearly Tk 190 billion was redeposited into banks in April. This shift signals growing public confidence in the banking sector, aided by Bangladesh Bank’s reforms and improved governance. Cash held outside banks dropped by 6.43% in April, while deposits rose by nearly Tk 20 billion. Analysts say increased liquidity will strengthen lending capacity and support investment, benefiting the overall economy.

Bangladesh’s business environment improved in May as political stability strengthened and inflation dropped to a 27-month low of 9.05%. The Bangladesh Purchasing Managers’ Index (PMI) rose by 6 points to 58.9, driven by strong growth in agriculture, manufacturing, and services. The agriculture sector expanded for the eighth straight month, while manufacturing continued its ninth month of growth. Though the construction sector remained stable, it showed no further improvement. The positive trend reflects easing cost pressures and improving investor confidence.

Bangladesh's garment exports to the EU grew by 25.3% in the first four months of 2025, reaching €7.54 billion—outperforming China, India, and Vietnam. This marks the highest growth among major exporters. Monthly growth peaked at 60.9% in January. Experts attribute the rise to strong global demand, timely shipments, and competitive pricing. The US market also saw a 29.3% increase in Bangladeshi apparel imports. Sustained growth, however, will depend on investments in capacity, sustainability, and technology.

Bangladesh Bank Governor Dr. Ahsan H. Mansur has announced that five private Islamic banks are scheduled to undergo a merger in the near future. Addressing concerns, he clarified that this move is unrelated to the upcoming national elections and will proceed within the next few months, well before the polls.

“There is no reason for bank officials to worry,” Dr. Mansur said, noting that necessary adjustments, including potential relocation of branches, may take place. Banks with a higher concentration of urban branches might be directed to expand into rural areas to ensure balanced coverage.

He also discussed the ongoing efforts to recover assets laundered abroad. “This will be a phased process. No asset can be reclaimed without a final court verdict,” he said. However, he mentioned the existence of a mechanism for out-of-court settlements that could potentially expedite the repatriation of illicit funds.

The World Bank has approved a $250 million loan to enhance transparency, accountability, and efficiency within Bangladesh’s public sector. The project, titled “Strengthening Institutions for Transparency and Accountability,” will support key agencies including the Bangladesh Bureau of Statistics, National Board of Revenue, Planning Division, Central Procurement Technical Unit, and the Office of the Comptroller and Auditor General. The World Bank expects these institutional reforms to help reduce corruption in the country.

Sabekunnahar Mitu, a woman entrepreneur from Faridpur, is exporting eco-friendly handicrafts made from jute, hogla leaves, water hyacinth, and straw to Europe through her company LAM Creations. With two factories and over 500 workers, her business produces over 50 types of sustainable products. Earning around Tk 500,000 in monthly profit, she has been recognized by Bangladesh Bank for her achievements. Mitu aims to expand further with government support, bringing economic empowerment to rural communities and promoting environmentally conscious manufacturing.

Container handling at Chattogram Port has plummeted due to the extended government holidays for Eid-ul-Azha. Typically, the port clears around 5,000 containers daily, but this number dropped to less than half during the break. As of Thursday morning, import containers at the port rose from 28,000 on June 4 to over 39,000—an 11,000 increase in seven days. A pre-Eid customs work stoppage and transport strike had already caused vessel congestion. Although port officials say there's still enough space, traders warn further delays could severely affect service quality. Port operations remained active during the holidays, except on Eid day itself.

Bangladesh's leather industry is bracing for a 10–15% drop in rawhide collection after Eid-ul-Azha, falling to around 8 million from over 9 million last year. Despite growing global demand, exports may stumble again due to the inoperative Central Effluent Treatment Plant (CETP) in Savar. Tannery owners call it the sector’s biggest obstacle, suggesting BDT 300 crore investment could revive operations. While seasonal traders continue collecting salted hides, government-fixed prices prevail. Salt preservation efforts and new export permissions offer slight relief amidst structural bottlenecks.

Sugar prices in the global market may decline in the 2025–26 season due to expected production increases in India and Brazil. BMI forecasts a 26.3% rise in Indian output, while Brazil may boost production by shifting from ethanol to sugar due to lower oil prices. Although production in Brazil and Thailand may slightly dip from earlier estimates, overall supply is set to grow. Falling prices have already been observed in global markets, with traders selling more in anticipation of further declines.

Despite nearly $9 billion in increased remittance and export income, Bangladesh’s foreign reserves have hovered around $20 billion for 11 months. Declines in foreign direct investment, aid, and long-term loans, alongside higher import and debt repayment costs, offset the gains. The dollar crisis has eased, but reserves haven’t grown. Experts stress the need for political stability and investment-friendly policies to boost reserves. Bangladesh Bank expects a $3 billion rise in June with anticipated foreign loan inflows from global institutions like the IMF and World Bank.