Bangladesh’s overall inflation rate fell to 8.29% in August, its lowest level in more than three years, according to BBS data.
The figure is down from 8.55% in July and significantly lower than 10.49% recorded a year earlier.
Food inflation edged up slightly to 7.60% in August from 7.56% in July, while non-food inflation dropped from 9.38% to 8.90%.
Despite the decline, wage growth slowed to 8.15%, marking the 43rd consecutive month where wage increases lagged behind inflation—further straining low-income households.

Bangladesh Bank Governor Ahsan H. Mansur announced that no bonuses will be issued at loss-making banks.
“Banks with capital below 10% and provisioning losses cannot declare dividends or bonuses,” he said, adding that loans overdue for three months would be classified as non-performing.

Mansur noted improvements in financial discipline, including a sharp decline in hundi transactions that once siphoned off 30% of remittances. He also confirmed that the central bank bought $1 billion in dollars last month without causing a price spike.

Despite progress, he admitted concerns over inflation and warned that 30% of loans may default by June. Talks with the government on merging five troubled banks will begin Sunday.

NVIDIA reported record revenue of $46.7 billion for Q2, a 56% increase year-over-year, largely fueled by AI data center demand. However, two customers contributed 39% of the total revenue, referred to as Customer A (23%) and Customer B (16%). Four other clients added 46% collectively. These customers are mainly OEMs, system integrators, or distributors, with cloud providers like Google and Amazon buying indirectly. Analysts caution that heavy reliance on few customers poses risks but foresee continued strong spending.

Bangladesh now has the highest rate of default loans in Asia, according to the latest report by the Asian Development Bank (ADB).

The report reveals that in 2024, a staggering 20.2% of all disbursed loans in Bangladesh turned into defaults, amounting to $20.27 billion—an alarming 28% increase compared to the previous year. The ADB has labeled Bangladesh as having the “weakest banking system in Asia.”

Within just one year, the country’s default loan ratio jumped by 11.2 percentage points, while neighboring countries like India, Pakistan, and Sri Lanka managed to reduce their bad loan proportions. Nepal saw only a slight increase of 0.9%.

Highlighting India’s case, the report notes that large-scale banking reforms helped bring its non-performing loans down from 3.4% to 2.5%.

The ADB advised Bangladesh to urgently adopt strict legislation, strengthen financial markets, implement swift policy actions, modernize the judicial system, and ensure transparency and investor confidence. Only then, it warned, can the mounting loan default crisis be brought under control.

Executive Chairman of the Bangladesh Investment Development Authority (BIDA), Ashik Chowdhury, has unveiled an ambitious vision to transform Matarbari and Maheshkhali into world-class commercial hubs akin to Shanghai and Singapore within the next 30 years.

The project, covering 33,000 acres, will be implemented in three phases—2025 to 2030, 2030 to 2045, and 2045 to 2055. Chowdhury stated that within the next 120 days, all administrative groundwork will be completed.

Once operational, the mega-project is expected to generate 2.5 million jobs and position Bangladesh as a global maritime hub.

The chairman of First Security Islami Bank (FSIB), Abdul Mannan, has accused S. Alam Group of siphoning off nearly Tk 38,000 crore through anonymous loans from the bank.

Speaking after a meeting with the Bangladesh Bank governor, Mannan said multiple audits confirmed the embezzlement, with much of the money already laundered abroad. He named Saiful Alam, chairman of S. Alam Group, as the prime beneficiary.

The massive loan default has pushed FSIB into a severe crisis. Bangladesh Bank is reportedly planning to merge five weak banks, including FSIB, raising concerns over job security for employees and deposit safety for customers.

Bangladesh’s Advisory Council has approved the closure of three land ports and suspension of operational activities at one more, in a decision taken at its 40th meeting chaired by Chief Advisor Dr. Muhammad Yunus.

The ports slated for closure are Chilahati (Nilphamari), Doulatganj (Chuadanga), and Tegamukh (Rangamati). Additionally, operations at Balla land port in Chunarughat, Habiganj, have been suspended until further notice.

Bangladesh’s foreign currency reserves have crossed $31 billion once more, fueled by higher remittance inflows, export earnings, and loan support from international organizations.
As of Wednesday, gross reserves stood at $31.33 billion, while reserves calculated under IMF’s BPM-6 methodology reached $26.31 billion.
Earlier in July, after clearing $2.02 billion in ACU payments, reserves had dropped to $29.53 billion. By August 24, gross reserves recovered slightly to $30.86 billion.

Bangladesh Bank Governor Dr. Ahsan H. Mansur has revealed that the demand for cash in the country is rising by nearly 10% each year, costing the government around Tk 20,000 crore annually in printing and distribution.

Highlighting the need for digital alternatives, he said:

“A smartphone is now essential for financial transactions, bill payments, and online services.”

The central bank is working to introduce affordable smartphones priced between Tk 6,000–7,000 to ensure universal access to digital financial services.

Dr. Mansur also called for lowering internet costs and improving service quality to accelerate digital adoption.

On housing, he emphasized:

Millions of new homes are still needed across the country.

Urban migration is irreversible, making affordable housing projects urgent.

Banks could utilize their idle land by partnering with developers.

Starting today, the United States has imposed an additional 25% tariff on Indian exports, bringing the total tariff rate to 50%. The U.S. Department of Homeland Security issued the order through Customs and Border Protection.
The Trump administration said the move was a penalty for India’s continued purchase of Russian crude oil, which helps fund Moscow’s war in Ukraine. The new tariff adds to the 25% already in effect since August 1. India’s exports worth nearly $87 billion—about 2.5% of its GDP—are expected to be directly affected.

Former U.S. President Donald Trump has threatened to impose tariffs of 200% or higher on Chinese goods unless Beijing increases its supply of magnets to the United States.

According to Al Jazeera, China remains highly sensitive about rare earth elements. In April, Beijing restricted exports of several rare minerals and magnets in retaliation to Washington’s tariff hikes. Currently, China controls about 90% of the global magnet market.

Meanwhile, Intel Corporation has announced that it will acquire a 10% stake in the U.S.-based semiconductor giant, which heavily relies on rare minerals. Interestingly, despite restrictions, China’s rare earth exports have reportedly increased in recent months.

The Bangladesh Bank has announced plans to issue new licenses for digital banks, raising the minimum paid-up capital requirement to Tk 300 crore, up from the previous Tk 125 crore.

According to a central bank circular, licenses will be granted under the 1991 Bank Company Act, while payment services will be regulated under the 2014 Bangladesh Payment and Settlement Systems Regulations.

Digital banks will operate without physical branches, offering services exclusively through apps and online platforms. Customers will be able to deposit and spend money digitally, while receiving access to virtual cards, QR codes, and other advanced tools. However, plastic debit or credit cards will not be issued.

Each licensed digital bank will be required to go public and release primary shares within five years of operation.

At the India-Russia Business Forum in Moscow, Indian External Affairs Minister S. Jaishankar emphasized the urgent need to finalize the long-discussed India-Russia Free Trade Agreement. Calling for greater Russian participation in India’s expanding economy, Jaishankar said, “India is moving rapidly towards urbanization and modernization, creating new demand across sectors. This presents a significant opportunity for Russian companies in our market.”

Highlighting areas of collaboration, he noted that Russian firms could play a pivotal role in supplying essential industrial and agricultural goods such as fertilizers and chemicals. He expressed optimism that the free trade deal would help remove existing trade barriers.

Meanwhile, Russian Deputy Prime Minister Denis Manturov reaffirmed Moscow’s commitment to maintaining oil supplies to India and expanding cooperation in natural gas.

Trade Adviser Sheikh Bashir Uddin has announced that Bangladesh and Pakistan are taking steps to revive their long-dormant Joint Economic Commission (JEC) to enhance bilateral trade and investment.

Speaking to reporters, he said meaningful discussions were held with Pakistan’s commerce minister, including the possibility of forming a new Trade and Investment Commission. Both countries are also exploring joint ventures in intermediate goods production.

Bangladesh requested Pakistan to withdraw its anti-dumping duty on hydrogen peroxide and restore duty-free access for Bangladeshi tea exports. Additionally, Dhaka sought support for its leather and sugar industries. Talks also covered agricultural products and fruit trade.

When asked whether Bangladesh is tilting toward Pakistan, the adviser responded:
"We are leaning toward everyone—Pakistan, the United States, even importing onions from India. Wherever national interest lies, we will engage."

In a bid to sustain business momentum, Bangladesh Bank has relaxed its lending guidelines, allowing banks to distribute loans without implementing the Internal Credit Risk Rating Systems (ICRRS).

Banks can now disburse loans based on their own risk assessments to safeguard institutional interests.

The central bank explained that the earlier mandatory ICRRS-based lending policy was causing delays due to lengthy audits and financial scrutiny of entrepreneurs. To cut through such complications, a new circular has been issued.