The economic policies of the previous Awami League government trapped the country in a vicious cycle of corruption and mismanagement. Despite various rescue efforts, the economy continues to suffer from these systemic issues. One major problem is inflation, as commodity prices remain high. Although inflation has gradually decreased since October, consumers remain at the mercy of powerful syndicates that manipulate supply to charge higher prices. According to a former World Bank official in Dhaka, $16 billion was smuggled out of the country annually under Awami League rule, leaving the economy in a depleted state. Excessive printing of money led to rampant inflation, which peaked at 11.66% in July but has now dropped to 9.94%. The current administration is focused on reducing inflation and controlling capital flight, but the economy’s recovery remains uncertain due to continued dominance by corrupt business elites.

Bangladesh’s foreign exchange reserves have once again surpassed the $20 billion mark. At the beginning of the year, the gross reserve stood at $26.20 billion, while the BPM6-adjusted reserve was $21.36 billion. According to the latest data released on Thursday, the gross reserve now stands at $25.54 billion, while the BPM6-adjusted reserve is $20.20 billion. Earlier, on January 9, after clearing a $1.67 billion payment to the Asian Clearing Union (ACU) for November and December imports, the reserve had dropped to $20 billion. Under the previous Awami League government, reserves had once fallen below $14 billion, which was then artificially inflated through foreign loans and dollar purchases from commercial banks. However, under the new administration, the central bank has halted reserve sales and is now working to source dollars from various channels.

The interim government has set a target to bring inflation down to 8% by June of the current fiscal year. This decision was made in a meeting chaired by the Chief Adviser on Wednesday. The meeting also discussed the revised budget for the 2024-25 fiscal year. The previous government allegedly did not present the real picture of inflation. Although the last finance minister had set a target of 6.5% inflation, post-government collapse instability led the economic adviser to revise the target to 7%. Currently, inflation stands at 9.94%. Additionally, the GDP growth target for 2024-25 was initially set at 6.8% but has now been revised down to 5.25% by the interim government. The revenue collection target has also been reduced from BDT 6.8 trillion to BDT 4.635 trillion.

Fears of a global trade war emerged after Donald Trump imposed tariffs on Canada, Mexico, and China, causing the rupee to drop by 67 paise to 87.29. As investors sought safe-haven assets, the US dollar strengthened, weakening Asian currencies. Last week, India’s foreign exchange reserves faced a slight crisis, declining by $1.888 billion to $623.983 billion. The Indian stock market also saw a downturn, with the Sensex losing 575 points and the Nifty falling by 206 points.

According to Bangladesh Bank, remittances from expatriates amounted to $2.18523 billion in January. Due to the blockade, internet shutdown, and bank closures, remittances declined in July, the month of the mass uprising. However, after the victory of the uprising, expatriates began sending more remittances. • August: $2.22415 billion • September: $2.40479 billion • October: $2.39508 billion • November: $2.63878 billion Following this trend, January saw a significant inflow of remittances. The largest share of these funds was received by private banks.

China has pledged to take countermeasures against the 10% tariff imposed by the Trump administration on Chinese imports but has not escalated tensions immediately. Unlike the confrontational approach seen during Trump’s first term, Beijing’s response remains measured. On Sunday, China condemned the US move while signaling openness to negotiations to prevent further deterioration of trade relations. The measured stance suggests China aims to balance retaliation with diplomacy, keeping the possibility of resolution through talks or a challenge in the WTO.

Canada has imposed 25% retaliatory tariffs on $155bn worth of US goods, mirroring President Trump’s tariffs on Canadian and Mexican imports. Prime Minister Trudeau emphasized standing up for Canadians while warning of economic consequences. The tariffs target American beer, wine, household appliances, and more. Economists predict rising consumer prices as the trade war escalates. The White House defends tariffs as a crackdown on drug trafficking, but Trudeau refutes security concerns. Trump signals further tariff hikes if met with retaliation, deepening tensions between the neighboring nations.

The Asian Development Bank (ADB) has agreed to provide up to $1 billion in budget support to Bangladesh by June, subject to banking sector reforms, including reducing private bank directors and their tenure. ADB may also offer $300–$500 million for climate change initiatives if Bangladesh meets 16 conditions, such as implementing a national strategy and transport master plan. Other requirements include AI-based early warning systems for farmers and improved waste management. Economic Adviser Salehuddin Ahmed emphasized that Bangladesh will accept only low-interest loans.

U.S. President Donald Trump is set to impose a 25% tariff on Mexico and Canada starting February 1. This follows his earlier warning related to undocumented immigration, trade fraud, and fentanyl trafficking. Trump also mentioned plans to impose a 10% tariff on Chinese goods but did not elaborate. Despite not signing the tariff order earlier, he confirmed the move after his swearing-in. The tariffs will remain in place until these countries take action against illegal immigration and drug trafficking.

Argent LNG, developing a 25 MTPA LNG facility in Louisiana, signed a non-binding agreement with Bangladesh to supply up to 5 million metric tons of LNG annually. If completed, the project could supply LNG to Bangladesh’s state-owned Petrobangla. The agreement ensures reliable energy for Bangladesh’s industries, despite its price sensitivity, as seen in its return to coal during 2022’s LNG price spikes due to the Russia-Ukraine war.

Malaysia has made history by recognizing cryptocurrency as eligible for zakat, the obligatory Islamic charity. The Federal Territories Islamic Religious Council announced the decision to align zakat practices with the digital era. Cryptocurrency, a rapidly growing sector in Malaysia, involves 54.2% of the country’s investors, mostly aged 18–34, holding assets worth 16 billion ringgit. Officials see this as a potential new zakat source, particularly for young Muslims. The move reflects Malaysia’s effort to adapt Islamic finance to modern economic trends.

Professor Dr. Muhammad Yunus has appealed to world leaders for assistance in recovering billions stolen from Bangladesh. During the World Economic Forum in Davos, he met with leaders from Germany, Belgium, Thailand, Switzerland, and Congo, discussing economic cooperation, climate action, and the Rohingya crisis. Dr. Yunus highlighted corruption under the former government and outlined the interim government’s reform efforts. He urged international support to investigate past financial crimes and emphasized Bangladesh’s youth potential, clean energy initiatives, and plans to strengthen regional partnerships like BIMSTEC.

US President Donald Trump has signed an executive order to withdraw the US from the World Health Organization (WHO), citing its handling of Covid-19, failure to reform, and perceived political bias. The move, announced on his first day back in office, revives a decision he initiated during his previous term but was reversed by President Biden. The US, which contributed nearly 20% of WHO’s $6.8 billion annual budget in 2023, risks destabilizing the agency’s funding. Trump hinted at a possible return, saying, “We’ll see what happens.”

Chinese Vice President Han Zheng met Elon Musk in Washington as part of a high-level delegation, discussing trade ties and welcoming U.S. businesses to China. Musk is set to join the Trump administration as co-head of the Department of Government Efficiency. Han also met Vice President-elect J.D. Vance to discuss bilateral and international relations. Emphasizing shared interests, Han pledged reforms and an improved business climate, aiming for stable, healthy, and sustainable U.S.-China cooperation.

Argentina’s Ambassador to Bangladesh, Marcelo Cesa, has requested Bangladesh’s cooperation to introduce microcredit in Argentina and increase trade between the two nations. Cesa highlighted the unexplored potential in sectors like cotton, pharmaceuticals, textiles, and football. The Chief Adviser, Dr. Muhammad Yunus, supported expanding bilateral ties, noting the strong emotional connection through football. The discussion also touched on investment opportunities and energy cooperation, as well as Argentina’s appreciation for Bangladesh’s commitment to combating enforced disappearances.