[🇧🇩] Monitoring Bangladesh's Economy

[Saif]

Govt cuts interest rates on savings certificates

The government has lowered the interest rates on all types of National Savings Certificates for the second half of 2025. The interest rate ceiling for certificates has been set at 12 per cent, while the floor is 9.74 per cent. Previously, the lowest interest rate for certificates was 10.13 per ce

thefinancialexpress.com.bd

Govt cuts interest rates on savings certificates

FE ONLINE DESK
Published :
Jul 01, 2025 15:08
Updated :
Jul 01, 2025 15:08

The government has lowered the interest rates on all types of National Savings Certificates for the second half of 2025.

The interest rate ceiling for certificates has been set at 12 per cent, while the floor is 9.74 per cent.

Previously, the lowest interest rate for certificates was 10.13 per cent and the highest was 12.55 per cent, reports bdnews24.com.

The Department of National Savings issued a notification on Monday fixing the new interest rates. However, the existing interest rate for four types of schemes -- Wage Earner Development Bond, US Dollar Premium Bond, US Dollar Investment Bond and Post Office Savings Bank General Account -- will remain unchanged.

The government has decided to revise the interest rate on savings certificates every six months. It had previously announced rates in January for the next six months.

Even if the interest rate changes, the rate fixed at the time of purchase will be maintained until the scheme under which the investment was made matures.

One interest rate is set for investing Tk 750,000 in savings certificates individually or jointly. The government offers a relatively lower interest rate for investments exceeding that amount.

According to the latest decision, the interest rate for an investment of Tk 750,000 in a pensioner savings certificate for five years will be 11.98 per cent, which is the highest interest rate. Previously, the highest rate was 12.55 per cent.

The interest rate for an investment of Tk 750,000 in this scheme for one year will be 9.84 percent. Earlier, it was 10.23 per cent for one year.

If an investment of Tk 750,000 in a five-year Bangladesh Savings Certificate is withdrawn after a year, the interest rate will be 9.74 per cent. If the investment is more than Tk 750,000, the interest rate for the same period will be 9.72 per cent.

Interest rates are also determined every three months for profit-based savings certificates, family savings certificates and post office savings accounts.

Family savings certificates are the most popular savings scheme. The interest rate for an investment of up to Tk 750,000 in this savings certificate for a period of five years is now 11.93 per cent, down from 12.50 per cent previously.

If withdrawn after a year, the interest rate comes down to 9.81 percent, from 20.20 percent previously.

For investments of more than Tk 750,000, the minimum interest rate is 10.11 per cent and the maximum is 12.37 per cent.

To meet the budget deficit, the government plans to borrow Tk 1.26 trillion from domestic sources for the 2025-26 budget, which is 2.0 per cent of GDP.

Of this amount, the government has targeted raising Tk 125 billion from savings certificates. Over the last 10 months of the fiscal year 2024-25, the government had to repay more than it had borrowed from savings certificates.

The government had to pay net interests of Tk 74.31 billion over the last 10 months for savings certificates, meaning that the sector saw debt growth. It had planned to borrow Tk 140 billion from the scheme in the previous fiscal year.​

 

[Saif]

Bangladesh receives $2.70 billion in remittance in 29 days of June

Expatriate Bangladeshis sent over $2.70 billion in remittances during the 29 days of June in the 2024-25 fiscal year. This marks a 14.10 per cent increase compared to the same period last year, when remittances totalled $2.37 billion, said Arif Hossain Khan, executive director of Bangladesh Bank.

thefinancialexpress.com.bd

Bangladesh receives $2.70 billion in remittance in 29 days of June

FE ONLINE DESK
Published :
Jul 01, 2025 14:52
Updated :
Jul 01, 2025 14:52

Expatriate Bangladeshis sent over $2.70 billion in remittances during the 29 days of June in the 2024-25 fiscal year.

This marks a 14.10 per cent increase compared to the same period last year, when remittances totalled $2.37 billion, said Arif Hossain Khan, executive director of Bangladesh Bank.

According to the data, Bangladesh received a record $30.21 billion in remittances during the outgoing fiscal year up to June 29 — the highest ever in any fiscal year in the country’s history.​

 

[Saif]

Record remittance raises reserve to $31.68b

Foreign currency reserves have crossed US$31 billion mark at the end of June 2025 due to a record inflow of remittances this fiscal year 2024-25 (FY25). The country's gross reserves have risen to $31.68 billion, according to data released by the Bangladesh Bank (BB) today, Tuesday.

en.prothomalo.com

Record remittance raises reserve to $31.68b

BSS Dhaka
Published: 01 Jul 2025, 22: 54

Foreign currency reserves have crossed US$31 billion mark at the end of June 2025 due to a record inflow of remittances this fiscal year 2024-25 (FY25).

The country's gross reserves have risen to $31.68 billion, according to data released by the Bangladesh Bank (BB) today, Tuesday.

The surge came after a significant increase in remittance inflows, which reached $30.33 billion in FY25-- the highest ever in any fiscal year in the country's history.

However, as per the International Monetary Fund (IMF) methodology under the Balance of Payments and International Investment Position Manual (BPM6), Bangladesh's net reserves currently stand at US$26.66 billion.​

 

[Saif]

Hard-term World Bank lending window beckoning Bangladesh

Bangladesh is asked to borrow from the International Bank of Reconstruction and Development (IBRD), a hard-term lending arm of the World Bank, which extends costlier market-based loan that the country can ill afford at this stage of its graduation process, officials said. The World Bank has su

thefinancialexpress.com.bd

Hard-term World Bank lending window beckoning Bangladesh
Market-based loan thru IBRD much costlier than funds borrowed thru Bank's soft-arm IDA

FHM Humayan Kabir
Published :
Jul 03, 2025 00:26
Updated :
Jul 03, 2025 00:26

Bangladesh is asked to borrow from the International Bank of Reconstruction and Development (IBRD), a hard-term lending arm of the World Bank, which extends costlier market-based loan that the country can ill afford at this stage of its graduation process, officials said.

The World Bank has suggested the country to take certain quantum of funds under the newly devised IDA-21 aid package through a window of the IBRD in addition to its ongoing IDA facilities, they said.

This segmentation of funding has designated Bangladesh's status as 'Blend Country' that signifies its transitional state in-between an LDC and an MIC.

However, government authorities are noncommittal on borrowing the costly funds at this moment apart from the ongoing IDA and some other concessional facilities from the global lenders, a Ministry of Finance (MoF) official says.

"The WB has suggested that Bangladesh borrow loan from the IBRD in the upcoming three-year IDA-21 aid package as the country needs more investments from foreign sources. But Bangladesh is unwilling to enter into the IBRD lending window," says a senior Economic Relations Division (ERD) official.

Currently, Bangladesh has been placed as a 'Blend Country' in the WB borrower category under which the country can borrow concessional credits from the International Development Association or IDA and a small portion of that from market- based option like Scale up Facility Window (SFW).

The Washington-based global lender, WB, charges 1.0-percent interest, 0.75-percent service charges and 0.25-percent commitment fee under the IDA facilities. The maturity of the loan is 30 years, including 7-10 year of grace period.

On the other hand, the IBRD loan bears market-based rates wherein SOFR-plus a spread of 2.5 per cent to 2.6 per cent will be added up.

On top of that are a front-end-fee of 0.25 per cent and a commitment fee of 0.25 per cent applicable to each of the loans.

Also, the maturity of an IBRD credit is determined by short maturity loan (SML) where the final maturity period is maximum 7 years, with a chasing 4- year grace period, according to the WB website.

For the IBRD Special Development Policy Loans, the ending rate would be reference rate + applicable adjustment spread + minimum of 2.00 per cent. Besides, the front-end fee is 1.0 per cent of the principal loan amount, the website reads.

The final maturity of the loan will be up to 10 years and 5-year grace period.

Since Bangladesh's economic status has been upgraded to a Lower-Middle Income Country with effect since 2015 and it is going to graduate from the least-developed country (LDC) status to developing nation, the WB now begins beckoning Bangladesh into its harder lending arm -- IBRD, a senior MoF official told the FE writer.

From the next IDA-21 aid- package period, the WB has offered Bangladesh the IBRD loan, he added.

ERD Secretary Shahriar Kader Siddiki told the FE that they would prefer concessional loans in the coming years, too, as the country's economy has been on the cusp of transition before graduating into a developing nation in 2026.

"Bangladesh may not be in a position to enter into the IBRD loan facility of the WB at this moment," he opines.

The World Bank Group has already formed a three-year aid package under its IDA-21 replenishment where it announces a $100 billion worth of basket for the borrowing countries across the globe.

The World Bank's International Development Association or IDA has secured a record $100- billion aid package for its 21st replenishment (IDA21) spanning from July 2025 to June 2028.

The ERD official says Bangladesh is availing the facility of IDA loan where at least 10 per cent of the total borrowing would now have to be market-based.

In that case, he adds, Dhaka is willing to get the loan (10 per cent) from the SUW rather than getting into the IBRD window in next three years.

"Upon getting pressure from the WB, we would request the global lender for considering us for the IDA loan with 10-percent market-based share as Bangladesh is passing a transitional period before becoming a developing nation," the MoF official says.

Bangladesh is the largest borrower from the WB's IDA coffers as it has made a commitment of more than $10.0 billion in aid in last three years under the IDA-20 package between FY2023 and FY2025.​

 

[Saif]

Exports fetch $48.28b in FY25

Merchandise exports earned Bangladesh US$ 48.28 billion in the just- concluded fiscal year 2024-25 in a steady growth, bar the last month, banking heavily on the performance of readymade garments as usual. Official statistics published Wednesday showed 8.58-percent year-on-year growth in the exp

thefinancialexpress.com.bd

Exports fetch $48.28b in FY25

FE REPORT
Published :
Jul 03, 2025 00:23
Updated :
Jul 03, 2025 00:23

Merchandise exports earned Bangladesh US$ 48.28 billion in the just- concluded fiscal year 2024-25 in a steady growth, bar the last month, banking heavily on the performance of readymade garments as usual.

Official statistics published Wednesday showed 8.58-percent year-on-year growth in the exports, excepting in the troubled month of June. The single-month export earnings witnessed a 7.55-percent decline to US$3.33 billion against US$3.61 billion in June 2024.

The country's total merchandise exports fetched US$44.46 billion in the fiscal year 2023-24, according to Export Promotion Bureau (EPB) data.

Despite the growth in annual performance in many sectors, the overall decline in June 2025 export earnings underscores the challenges, including ongoing global economic uncertainty, falling consumer demand in major markets, logistic issues and tough competition from other manufacturing hubs, facing Bangladesh in the short term.

Exporters attribute the export decline in the last month to the long Eid-ul-Adha holiday and a two-day complete shutdown of ports amid turmoil in the National Board of Revenue (NBR).

The single-largest export sector, RMG, maintained its dominance as Bangladesh's export earner contributing 81.49 per cent of the total earnings.

Out of the total US$48.28 billion, RMG fetched US$39.34 billion, marking 8.84-percent growth, according to EPB data.

Within the RMG segment, knitwear exports rose by 9.73 per cent to US$21.15 billion, while woven garments grew by 7.82 per cent to US$18.18 billion.

Home textiles marked a 2.42-percent growth to $871.57 million during July-June period of the last fiscal year.

Talking to The Financial Express, Fazlee Shamim Ehsan, executive president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), appeared upbeat about the continuous growth performance throughout the fiscal year.

"It is because buyers have confidence in us for many reasons, including quality and others," he said.

Besides, work orders from China are shifting and Bangladesh remains on top preference of brands and buyers to place the shifting orders.

Regarding June performance, he said US buyers are going slow and holding a certain portion of work orders due to the US's new tariff regimes waiting to see what is going to happen in the end.

Asked, Mahmud Hasan Khan, president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said the growth rate would sustain in the coming months if the existing US tariff rates remain unchanged.

"But if it goes up for Bangladesh, as proposed earlier, it would be a big blow for the country," he warns.

Exporters, however, allege that they are in the dark over what negotiations with the US are going on.

Meantime, earnings from jute and jute goods exports continued to struggle, recording 4.10-percent decline to fetch US$ 820.16 million during July-June period.

However, monthly figures showed a slight improvement, with June export rising 7.14 per cent year on year.

Earnings from leather and leather products registered 10.19-per cent year-on-year growth, earning US$1.14 billion in FY'25.

Leather-footwear-export earnings increased 23.54 per cent to US$672.07 million.

Agricultural products earned US$988.62 million, showing 2.52-percent growth during the FY25, but in June alone, exports fell by 6.41 per cent compared to June 2024.

Talking to the FE, agricultural product exporters, however, cited a number of factors, including cut in cash incentives by the government, high import costs for most of the agricultural inputs and other ingredients mostly used for processing foods, paucity of required air spaces coupled with higher freight charges, for the declining trend in the sector's performance.

Frozen and live fish exports recorded 17.23-percent growth to earn US$441.58 million during July-June period of FY'25, led by shrimp shipment that increased by 19.32 per cent to US$296.29 million.

Engineering products recorded 10.03-percent growth and earned US$535.56 million.

Plastics exports came to US$284.05 million in the just-concluded fiscal year with a 16.21-percent growth.​