Bangladesh and the United States have signed a Memorandum of Understanding (MoU) under which Bangladesh will import 700,000 metric tons of wheat annually from the US at competitive prices over the next five years.

Food Adviser Ali Imam Majumder stated that this initiative will play a vital role in strengthening the country's food security, nutrition, and supply chain. The agreement was signed by Director General of the Directorate General of Food, Abul Hasnat, and Vice President of the US Wheat Associates, Joseph Sowers. The signing ceremony was attended by senior officials from both countries, including US Chargé d’Affaires Tracy Ann Jacobson.

Government-issued prize bonds are facing increasing transaction deficits, as proceeds from new bond sales are insufficient to repay older liabilities. Investor confidence has waned due to lack of profitability, complex prize collection procedures, and a lottery-based system. As of January 2025, the deficit stands at Tk 20.9 crore, with similar trends continuing throughout the year. While sales spike before each quarterly draw, they quickly taper off, disrupting the original goal of encouraging savings. Currently, only Tk 100-denomination bonds are available, with limited promotional efforts and reduced public interest. The government is now forced to draw funds from other sectors to cover obligations—an alarming sign for the broader economy.

The National Board of Revenue (NBR) has withdrawn the excise duty on raw materials used in the ready-made garments (RMG) sector, including cotton, synthetic fibers, and acrylic. According to a notification issued on July 17, these imported materials will now attract zero percent excise duty. Previously, there was a 2% advance income tax on cotton imports, which had been criticized by industry stakeholders.

The textile sector supplies approximately 70% of the yarn and fabric used in the RMG industry, which has investments worth nearly $23 billion. This decision is expected to provide some relief to the sector, which plays a crucial role in the country’s economy.

Bangladesh’s total foreign currency reserves have increased to $30.02 billion, according to the latest data from Bangladesh Bank. However, using the IMF’s BPM6 calculation method, which excludes short-term liabilities, the net reserve stands at $24.99 billion. The recent rise follows a payment of $2.02 billion to the Asian Clearing Union, which had temporarily reduced reserves earlier this month. Officials noted a gradual recovery over the past weeks. The BPM6 method is now the global standard for reporting accurate net reserves.

Chinese Ambassador Yao Wen met with Bangladesh's Commerce Advisor Sheikh Bashir Uddin on July 16 at the Secretariat in Dhaka. The two discussed strengthening trade and investment cooperation between the two nations. Both sides emphasized the importance of deepening bilateral ties and exploring new avenues for economic collaboration. The meeting reflects ongoing efforts by Bangladesh and China to enhance strategic partnerships, particularly in the areas of commerce and investment, aiming for mutual growth and long-term economic benefits.

India’s merchandise trade deficit is projected to rise to $300 billion in the 2025–26 fiscal year, up from $287 billion last year, driven by sluggish exports and robust import growth. According to an ICICI Bank report, weaker demand in major global markets—excluding the U.S.—has slowed export momentum. U.S. demand remains relatively high due to advance orders ahead of potential tariffs. Meanwhile, strong domestic consumption is expected to boost imports further, potentially widening the trade imbalance.

Bangladesh's economy has hit a period of stagnation due to weak revenue collection, a widening budget deficit, and mounting inflationary pressures, according to the Bangladesh Bank’s annual report for FY 2023–24.

The report warns that the economic slowdown is threatening overall macroeconomic stability. Reduced funding for development projects has led to a liquidity crisis in the banking sector, forcing the government to rely heavily on borrowing—further fueling inflation.

However, the report notes some recent signs of recovery following a change in government. Improvements in fiscal discipline, rising domestic savings, and initiatives to boost investment have generated cautious optimism. Inflation is also showing signs of a gradual decline. To ensure long-term stability, the central bank emphasizes the need to increase private sector investment.

World Bank Vice President for South Asia, Martin Raiser, has commended the Government of Bangladesh for its commitment to transparency and accountability. Speaking at the end of his official visit on Wednesday, Raiser noted that bold and urgent reforms could significantly accelerate inclusive economic growth in the country.

The World Bank pledged over $3 billion in the last fiscal year to support Bangladesh’s health, water, sanitation, and social protection sectors. Raiser reaffirmed the World Bank’s continued partnership with Bangladesh, emphasizing support for economic and climate resilience and the creation of job opportunities.

The United States has finalized a trade agreement imposing a 19% tariff on Indonesian exports. Under the deal, Indonesia will purchase $15 billion worth of fuel, $4.5 billion in agricultural products, and 50 Boeing aircraft from the US. President Trump warned that attempts to bypass tariffs via third countries would result in stricter penalties. A similar trade deal with Vietnam is near completion. Analysts note that despite aggressive tariff policies, the Trump administration is lagging behind its goal of finalizing 90 trade deals within 90 days.

The World Bank provided over $3 billion in funding to Bangladesh in the last fiscal year and has committed to maintaining similar support over the next three years. During a meeting in Dhaka with Chief Adviser Professor Muhammad Yunus, Vice President for South Asia Johannes Zutt praised the interim government's financial sector reforms and reaffirmed the Bank’s support for inclusive growth in Bangladesh. Zutt commended Yunus's leadership in youth engagement and women’s empowerment. Yunus emphasized harnessing youth for industrial growth and envisioned Bangladesh as a major economic force.

Increased remittance inflows have boosted the value of the Bangladeshi Taka, causing the exchange rate of the U.S. dollar to fall by Tk 2.20. According to Bangladesh Bank data, the interbank rate stood at Tk 120.10 on Monday, down from Tk 122.30 on July 9. Remittance inflows in FY 2024–25 rose by 26.81%. On July 13, Bangladesh Bank purchased $171 million from the market for the first time, helping stabilize the forex market. Reserves now stand at $24.54 billion, higher than last year. However, bank officials warn that a weakening dollar may harm exporters and overseas workers.

Trade negotiations between the United States and Bangladesh have so far yielded no positive developments regarding the proposed reduction of the 35% additional tariffs on Bangladeshi goods. Discussions are expected to continue throughout July, but policymakers have not issued any clear statements. Representatives from the garment sector warn that if the current 50% total duty remains in effect, it could severely impact exports, with some buyers already suspending orders. Economist Dr. Zahid Hussain criticized the government’s lack of preparation and failure to include relevant experts in the talks.

Following a meeting with Economic Adviser Dr. Salehuddin Ahmed, World Bank Vice President for South Asia, Johannes Zutt, commented positively on Bangladesh’s economic progress. “Contrary to previous concerns, Bangladesh is now on the right track,” he said. Discussions included reforms in the financial sector, foreign exchange, and budget support, with an emphasis on attracting private and foreign investment. The World Bank expressed interest in supporting NBR reforms, bank restructuring, and infrastructure development. Further support will be finalized during the World Bank-IMF annual meetings this October.

Chinese automaker GAC has opened its flagship showroom in Dhaka’s Tejgaon area, expanding its footprint in Bangladesh’s automobile industry. The launch follows GAC’s official brand debut at the Dhaka Motor Show in May. DHS Motors, GAC’s sole distributor, plans to introduce the AION electric vehicle line soon. Senior officials from both DHS Motors and GAC International attended the inauguration. The company also aims to establish a local assembly plant, contributing to the development of an eco-friendly and sustainable transport sector in Bangladesh.

Following U.S. President Donald Trump's announcement of a 30% tariff on imports from the EU and Mexico starting August 1, European Commission President Ursula von der Leyen warned that the EU would take reciprocal measures to protect its interests. While remaining open to negotiations, she stated that the EU would not hesitate to act if necessary. Trump has also proposed increased tariffs on imports from Japan, Canada, Brazil, and other countries.