Cash holdings outside banks in Bangladesh surged by about Tk 410 billion over December and January, according to Bangladesh Bank data confirmed by its spokesperson Arif Hossain Khan. The increase coincides with intensified campaign activities for the upcoming 13th parliamentary election scheduled for February 12. The central bank attributes the rise to withdrawals by candidates covering election-related expenses, while the Bangladesh Financial Intelligence Unit (BFIU) is monitoring large or suspicious transactions.

Bangladesh Bank data show that cash outside banks rose from Tk 2.69 trillion in November to Tk 3.10 trillion in January. This reverses a previous downward trend observed from July to November. Former World Bank economist Zahid Hossain noted that such increases before elections are not unusual, as campaign spending often involves cash transactions. The BFIU has tightened oversight since January 11, requiring weekly reports on cash transactions of Tk 1 million or more.

Additionally, mobile financial services will be restricted from February 8 to 13 to prevent misuse of funds for voter influence. Daily transaction limits will be capped at Tk 10,000, with a maximum of Tk 1,000 per transaction, as directed by the BFIU at the Election Commission’s request.

Bangladesh and the United States are expected to sign a bilateral trade agreement in Washington on February 9, aimed at reducing U.S. counter-tariffs on Bangladeshi goods and expanding trade benefits. Commerce Secretary Mahbubur Rahman said the draft agreement has been prepared and submitted for approval. He confirmed that the signing date has been set and that final tariff rates will be determined by that day.

The U.S. initially imposed counter-tariffs of 37 percent and later 35 percent on Bangladeshi products under the Trump administration, but after several rounds of talks, the rate was reduced to 20 percent on July 31 last year. Although no formal agreement was signed then, discussions continued to secure further tariff cuts and duty-free access for garments made with U.S. cotton. To gain these benefits, Bangladesh has pledged to reduce its trade deficit with the U.S. by increasing imports of Boeing aircraft, fuel, LNG, wheat, and cotton.

The Commerce Secretary also noted that Bangladesh is pursuing free trade agreements with other countries, including Japan and South Korea, to address post-LDC graduation challenges and enhance export growth.

The three-day Bangladesh Light Engineering Expo 2026 began on Monday, February 2, at the Shaheed Abu Sayeed International Convention Center in Dhaka’s Minto Road. The event was inaugurated by Md. Abdur Rahim Khan, Project Director of the Export Competitiveness for Jobs (EC4J) project. The expo, running until February 4, showcases the latest technologies, machinery, and innovative products from the country’s light engineering sector.

Speakers emphasized coordinated efforts to make the sector export-oriented and competitive as Bangladesh prepares to graduate from LDC status in November. They highlighted the need for capacity building, technology advancement, and policy support to offset the loss of duty-free trade benefits. The World Bank’s Hosna Ferdous Sumi noted that both export and domestic markets, worth around USD 8 billion, offer major opportunities but stressed quality compliance and production efficiency as key challenges.

BSCIC President Abdur Razzak said the sector contributes about 3% to GDP, employs 300,000 skilled workers, and meets half of the USD 8.2 billion domestic demand. With proper policy and investment, exports could reach USD 12.56 billion by 2030, he added.

The Bangladesh Energy Regulatory Commission (BERC) has increased the retail price of liquefied petroleum gas (LPG) for February. The price of a 12-kilogram LPG cylinder has been raised by 50 taka to 1,356 taka. The new rate will take effect from 6 p.m. on Monday. Alongside, the price of autogas has also been increased by 2.34 taka per liter, setting the new consumer price at 62.14 taka per liter including VAT.

According to BERC Chairman Jalal Ahmed, the February adjustment follows the previous revision on January 4, when the price of a 12-kilogram LPG cylinder was raised by 53 taka to 1,306 taka. Similarly, autogas prices were last adjusted on January 4, when the rate was increased by 2.48 taka per liter to 59.80 taka per liter including VAT.

The latest price adjustment reflects BERC’s monthly review process for LPG and autogas rates, which are periodically revised based on market conditions and other regulatory considerations.

Global oil prices declined on Monday following remarks by U.S. President Donald Trump expressing optimism about reaching a deal with Iran. In early Asian trading, West Texas Intermediate crude dropped 3.4 percent to 62.99 dollars per barrel, while Brent crude fell 3.2 percent to 67.09 dollars.

The price movement followed weeks of heightened tension between Washington and Tehran. After anti-government protests in Iran were met with a crackdown, Trump had threatened military action and ordered an aircraft carrier to the Middle East. He has been pressing for a new agreement over Iran’s nuclear program. On Sunday, Iran’s Supreme Leader Ali Khamenei compared the protests to an “uprising” and warned that any military intervention would lead to a regional war.

Responding to Khamenei’s comments, Trump told reporters he hoped for a deal but said time would determine whether Khamenei’s stance was right or wrong.

Bangladesh and the United States are expected to sign a bilateral trade agreement in Washington on February 9 aimed at reducing U.S. counter-tariffs on Bangladeshi goods and expanding trade benefits. Commerce Secretary Mahbubur Rahman said the draft of the agreement has been prepared and submitted for approval. He confirmed that the signing schedule has been set for February 9, pending final authorization.

The U.S. administration under President Donald Trump had initially imposed 37 percent counter-tariffs on Bangladeshi products, later reducing them to 20 percent after several negotiation rounds, though no formal agreement was signed at that time. The upcoming deal is expected to further lower tariffs and secure duty-free access for garments made with U.S. cotton. To obtain these benefits, Bangladesh has pledged to reduce its trade deficit with the U.S. by increasing imports of Boeing aircraft, fuel, LNG, wheat, and cotton.

The commerce secretary clarified that military items such as fighter jets are not part of the trade deal. He added that Bangladesh is also advancing free trade agreements with Japan, South Korea, and other partners to strengthen its post-LDC graduation trade position.

Bangladesh Bank has asked all banks in the country to provide detailed information on agricultural loans up to Tk 10,000. The request followed a query from board member and Dhaka University professor Rashed Al Mahmud Titumir. The central bank’s Agricultural Credit Department sent an email after office hours on Thursday, instructing banks to submit the data by noon on Sunday. Executive Director and spokesperson Arif Hossain Khan confirmed the directive.

According to the letter, banks were told to report the total principal, interest or profit, and outstanding balance of loans and investments in the agriculture and rural sectors up to Tk 10,000 as of December 31 of the previous year. The reason for the sudden request was not disclosed, and the spokesperson said he was unaware of the purpose behind it. The report notes that the data collection was not discussed at any board meeting or through the usual internal approval process.

In the first six months of the current fiscal year, banks disbursed Tk 21,000 crore in agricultural loans, marking a 29 percent increase from the same period last year.

Bangladesh Bank reported that remittance inflows rose sharply in January 2026, reaching USD 3.17 billion, a 45.10 percent increase compared to USD 2.185 billion in January 2025. Sector insiders attributed the surge to funds sent ahead of the upcoming national election and Ramadan, as many candidates and families transferred money from abroad. The data was published in the central bank’s latest report.

From July 2025 to January 2026, total remittances amounted to USD 19.43 billion, up 21.80 percent from the same period of the previous fiscal year. Bankers explained that the decline in money laundering and increased use of formal channels have boosted remittance inflows, improving dollar supply and strengthening foreign exchange reserves. Bangladesh Bank has purchased USD 3.93 billion since July to maintain market balance.

As of January 29, 2026, the country’s foreign exchange reserves stood at USD 33.18 billion, or USD 28.68 billion under BPM-6 standards. The central bank noted that higher remittance inflows and dollar purchases have contributed to the recent rise in reserves.

India’s new fiscal year budget has increased grant assistance to Bangladesh by 74 percent, allocating 600 million rupees for the 2027 financial year. According to The Hindu Business Line, citing India’s central budget documents, this marks a significant rise from the revised figure of 344.8 million rupees in the previous year. The report noted that despite domestic discussions about anti-India sentiment, New Delhi expanded its allocation to Dhaka.

The budget also shows India halting all grants to Iran’s Chabahar Port, which previously received 4 billion rupees, reportedly due to U.S. sanctions pressure. Meanwhile, Afghanistan’s grant rose by 50 percent to 1.5 billion rupees, and Bhutan remains the largest recipient with a total of 22.88 billion rupees. In contrast, allocations for Nepal, the Maldives, and Mauritius were reduced, with Mauritius facing the steepest cut of about 33 percent.

Overall, India proposed 87.92 billion rupees in total foreign grants and loans, down 27 percent from the previous year’s revised figure, signaling a strategic and financial restructuring of its foreign aid program.

Bangladesh’s postal department-backed digital financial service Nagad recorded its highest-ever monthly transaction volume in January 2026, reaching Tk 40,301 crore. This marks the company’s largest single-month transaction since its inception seven years ago. The record-breaking figure came mainly from cash-in, cash-out, money transfers, payments, bill settlements, mobile recharges, and remittances.

Nagad’s administrator, Md. Motasim Billah, congratulated all involved, noting that the company’s customer-centric approach and trust-building efforts have driven continuous growth. He said Nagad, as a digital transaction platform under the Bangladesh Post Office, is enhancing service quality and ensuring greater financial security for users. This has led to rising engagement from both new and existing customers.

Previously, Nagad’s highest monthly transaction was Tk 34,705 crore in October 2025. The company handled Tk 3.8 trillion in total transactions in 2025, up from Tk 3.3 trillion in 2024, reflecting sustained expansion in Bangladesh’s mobile financial services sector.

Interim government Chief Adviser Professor Muhammad Yunus has called for immediate discussions with the European Union to establish a free trade agreement (FTA). He made the appeal during a meeting with Nuria Lopez, Chairperson of the European Chamber of Commerce in Bangladesh (EuroCham), at the state guesthouse Jamuna in Dhaka. EU Ambassador Michael Miller also attended the meeting, where participants discussed enhancing European investment, improving trade relations, and strengthening a business-friendly environment.

Yunus emphasized that Bangladesh must prepare now to maintain duty-free access for its exports, particularly ready-made garments, after the current trade privileges expire. He noted that Bangladesh recently signed an Economic Partnership Agreement (EPA) with Japan, granting duty-free access to over 7,300 products, and intends to pursue similar arrangements with the EU. Lopez supported the FTA initiative, warning that Bangladesh could lose existing benefits after graduating from the least developed country category.

EU Ambassador Miller said the nature of Bangladesh-EU trade relations will change after LDC graduation, expected no earlier than 2029, and confirmed plans for an EU-Bangladesh Business Forum in 2026 to promote investment and technology cooperation.

Bangladesh Bank has announced that all banks across the country will remain closed on February 11 and 12 due to the upcoming 13th National Parliamentary Election and a national referendum. The central bank issued a circular on Sunday stating that the closures follow an executive order declaring public holidays on those dates.

According to the notice, the decision applies to all banks nationwide as part of preparations for the election and referendum. This year’s parliamentary election involves more than 50 political parties and independent candidates, with nearly 2,000 contenders competing for 300 parliamentary seats. Alongside the election, a referendum on the July Reform Charter will also take place on the same day.

The simultaneous scheduling of the election and referendum has prompted the government to ensure administrative readiness, including the temporary suspension of banking operations during the designated holidays.

The three-day 2nd Bangladesh Light Engineering Expo 2026 will begin on February 2 at the Shaheed Abu Sayeed International Convention Center in Dhaka. Organized by the Bangladesh Engineering Industry Owners Association (BAISHIMAS) with support from the Ministry of Commerce and the World Bank-backed Export Competitiveness for Jobs (EC4J) project, the event will run daily from 11 a.m. to 7 p.m. The expo aims to enhance the competitiveness and export orientation of the country’s light engineering sector by showcasing the latest technologies, machinery, and innovative products.

BAISHIMAS President Md. Abdur Razzak said the sector supplies backward linkages to agriculture, textiles, construction, power, and automobile industries, contributing about 3 percent to national GDP. Around 50,000 small and medium enterprises employ over 300,000 skilled workers, meeting nearly half of the domestic demand worth USD 8.2 billion. Despite this, Bangladesh holds less than 1 percent of the USD 7 trillion global engineering market. The current export value of USD 795 million could reach USD 12.56 billion by 2030 with proper policy and investment support.

The expo will feature over 50 booths, two seminars, and participation from government officials, business chambers, and international buyers. Organizers expect the event to strengthen domestic industry, attract investment, and expand global market access.

The Additional District Judge Court No. 2 in Dhaka has delivered a final verdict in favor of Unilever Bangladesh in arbitration miscellaneous cases No. 436/2025 and 437/2025 filed by former distributors Masud & Brothers and Agrani Trading Corporation. The distributors had challenged the termination of their distributorships and sought injunctions against the termination notices and the appointment of new distributors in their respective areas. On January 29, 2026, the court dismissed the cases, finding no merit in the distributors’ applications.

Before filing these arbitration cases, the distributors had previously filed two declaratory suits and two money suits in an incorrect legal forum, which were dismissed for lack of maintainability. During the hearing on February 28, 2026, Unilever Bangladesh presented its position, demonstrating that the termination was lawful and in accordance with the distributor agreements. The company also informed the court that the distributors had concealed key documents and provided misleading information in earlier proceedings.

The verdict confirms that Unilever Bangladesh lawfully terminated the distributorships and can continue normal business operations through newly appointed distributors.

The Bangladesh Energy Regulatory Commission (BERC) will announce new consumer-level prices for liquefied petroleum gas (LPG) for February 2026 on Monday, February 2. According to a BERC notice issued on Sunday, the updated prices will be declared at a press briefing scheduled for 3 p.m. at the commission’s office in the Institution of Engineers, Bangladesh (IEB) in Dhaka. The adjustment will be based on the Saudi Aramco-declared Saudi CP for February.

In January, the price of a 12-kilogram LPG cylinder was set at 1,306 taka, up from 1,253 taka in December. The upcoming announcement will determine whether the February price increases or decreases compared to January. The new rate will remain effective for one month.

The BERC’s monthly price adjustments are part of its regular process to align domestic LPG prices with international benchmarks, ensuring consistency with global market trends.