Economic Adviser Dr. Wahiduddin Mahmud warned that the government’s efforts to save corruption-hit banks by printing money are proving ineffective.

Despite injecting large sums into the banking sector, financial institutions continue to struggle. He also noted a decline in hundi transactions, which has led to an increase in formal remittances.

Mahmud stressed the need for a long-term economic roadmap instead of short-term fixes. He also called for greater transparency in the Planning Commission, stating that past economic mismanagement had left the economy on the brink of collapse.

Leading editors from print and electronic media have urged the government to prioritize inflation control, investment growth, and job creation in the upcoming budget. They recommended raising the personal income tax exemption threshold to over 400,000 BDT and expanding social security programs.

Economic Advisor Salehuddin Ahmed stated that the new budget will not include extravagant mega projects or empty promises but will focus on building an equitable and welfare-oriented economy. He emphasized that Bangladesh cannot afford to delay its transition from LDC status and must tackle corruption and reduce unnecessary expenditures.

Dr. Fahmida Khatun, Executive Director of the Centre for Policy Dialogue (CPD), has claimed that economic data presented by the previous government was misleading and politically motivated. “The Bangladesh Bureau of Statistics (BBS) was directed to manipulate data as per their convenience,” she alleged. She also warned that Bangladeshi businesses are not adequately prepared to tackle the challenges of LDC graduation. The loss of tariff benefits post-graduation could cost the country’s export sector up to $8 billion annually. Additionally, foreign aid for climate financing is expected to decline. Fahmida also raised concerns about rising foreign debt.

Bangladesh’s garment exports to the U.S. have seen a significant rise, with export earnings reaching $799.56 million in January 2025—a 45.93% increase compared to January 2024, when exports stood at $547.95 million. The overall apparel imports of the U.S. also grew by 19.5% during this period, contributing to the surge in demand for Bangladeshi garments.

Bangladesh received $810 million in remittances in the first eight days of March, according to a report by Bangladesh Bank. In comparison, remittance inflows for the same period in February and January were $671 million and $535 million, respectively. This indicates a rising trend in remittance flow. Bangladesh Bank also reported that from March 2-8, the country received $784 million, while on March 1 alone, remittances amounted to $38 million. In 2024, total remittance inflows have reached $26.89 billion.

According to data from Bangladesh Bank, the country’s gross foreign exchange reserves have dropped to $25 billion after making payments to the Asian Clearing Union (ACU). Under the IMF’s BPM6 calculation standard, the reserves now stand at $19.7 billion. Previously, on March 6, the gross reserves were $27.6 billion, with BPM6 reserves at $21.4 billion. The ACU is a regional clearing mechanism that facilitates financial transactions among member countries, including Bangladesh, Bhutan, India, Iran, the Maldives, Myanmar, Nepal, Pakistan, and Sri Lanka. The organization, headquartered in Tehran, settles trade payments every two months through member central banks.

According to the latest update from Bangladesh Bank on Sunday, the country’s foreign exchange reserves have increased to $21.40 billion, driven by a positive inflow of remittances. As of March 6, the gross reserves stood at $26.60 billion. Based on the IMF’s BPM6 accounting system, the current usable reserves are $21.40 billion. In February alone, remittances amounted to $2.5 billion, equivalent to over Tk 308.29 billion.

Former U.S. President Donald Trump has issued an executive order to create a cryptocurrency reserve using government-owned digital assets. This move aligns with his campaign promise to make the United States the global capital of cryptocurrency.

Trump, the first U.S. president to accept campaign donations in cryptocurrency, has even launched his own digital currency. According to David Sacks, the federal crypto reserve will be funded through fines collected from criminal activities and assets seized in civil lawsuits, which will be converted into Bitcoin by the government.

Abdur Rahman, Secretary of the Internal Resources Division and Chairman of the National Board of Revenue (NBR), has stated that no other nation in the world pays as little tax as Bangladesh. “We have become a debt-ridden nation,” he said, adding that the country has expanded its budget every year for the past 52-53 years by taking on more loans. The burden of repaying those loans, along with accumulating interest, has now become overwhelming. He emphasized the need for increasing internal revenue through automation, revealing that out of 11.2 million TIN holders, only 4 million file tax returns, and 2.5 to 2.6 million contribute little to no tax. The NBR is now focusing on stricter enforcement to collect outstanding taxes.

Bangladesh’s foreign reserves have surged to $20.85 billion, driven by a steady flow of remittances from expatriates. In February alone, remittances amounted to $1.93 billion, pushing reserves closer to the $21 billion mark. The country’s gross reserves now stand at $26.11 billion. Bangladesh’s usable reserves are also above $15 billion, well beyond the threshold required to cover three months of imports. These positive developments reflect the country’s financial stability, with a consistent remittance inflow supporting the growth of reserves.

A severe funding crisis has halted government incentives for leather and garment exports, while tax revenues continue to decline. Amid this turmoil, the International Monetary Fund (IMF) has withheld loan disbursements until at least June. The government faces financial strain due to subsidies in electricity, fertilizer, food, and LNG sectors, while foreign debt and interest payments have also surged. Economic uncertainty is mounting, with inflation rising, foreign reserves dwindling, and exchange rates becoming unstable. The IMF has conditioned the loan on subsidy reductions, but the government remains reluctant to comply.

The Reserve Bank of India (RBI) is set to auction $10 billion through a three-year currency swap to address the banking sector’s liquidity crisis. This initiative, starting February 28, aims to inject approximately 870 billion rupees into the system. Analysts suggest it may also signal a shift in RBI’s forex policy. Despite a recent repo rate cut, cash shortages persist. The RBI has already infused 3.6 trillion rupees into banks, but further measures are needed as the liquidity deficit reaches 1.7 trillion rupees.

U.S. President Donald Trump has expressed support for Russia’s return to the G-7, calling its exclusion a “big mistake.” He emphasized that Russia should be part of the group, citing it was originally known as G-8. Trump also believes Russia is eager to rejoin. His comments come amid Canada’s presidency of the G-7 this year, although no immediate reaction has been received from Canada regarding his statement.

Bangladesh’s economy has made a strong recovery, with key indicators showing significant improvement, according to Chief Advisor Professor Muhammad Yunus’s Press Secretary, Shafiqul Alam. Speaking at a press briefing, he stated that macroeconomic stability has returned, with foreign reserves at $20 billion, covering 3.5 months of imports. Export growth has reached 10%, new jobs are being created, and inflation has dropped from 12% to 9%. The government expects inflation to fall further to 7.5% by July, ensuring price stability during Ramadan.

Bangladesh Bank will announce a new monetary policy tomorrow for the last six months of the fiscal year, prioritizing inflation control, foreign reserves, and exchange rate stability. Despite previous rate hikes failing to curb inflation, the central bank will keep policy interest rates unchanged. Experts argue that raising rates increases production costs and worsens inflation. Governor Dr. Ahsan H. Mansur, announcing his first policy, aims for a cautious approach. Analysts stress the need for market regulation and coordinated institutional efforts to tackle inflation effectively.