Bangladesh’s Banking Sector Shifts and Surging Gold Prices

• Bangladesh Expects USD 5.65bn in Budget Support from IMF, WB, and ADB to Fuel Reforms Source.

• Gold Price Hits Record High in Bangladesh, surpassing BDT ~140K per Bhori Source.

• RMG Industry Receives More Orders than Capacity amid recovery from recent unrest Source.

• China’s Slowest Growth in Over a Year prompts rate cuts to support economy Source.

• Oil Prices Drop 7% as China’s Demand Wanes, Impacting Global Outlook Source.

• European Central Bank (ECB) Considers Further Rate Cuts to address cooling inflation in the Eurozone Source.

• Bangladesh’s Foreign Debt Servicing Surges by 29% in Q1 of FY25 Source.

• The government approves Fertilizer Imports to Support Agriculture, which targets 5.2 million tons Source.

• Rice Import Duty Cut by 37% to Stabilize Domestic Prices Amid Inflation Source.

• Govt’s Bank Borrowing Rises Sharply, adding BDT 65,680mn amid revenue shortfall Source

Economy

• Foreign Debt Servicing Up by 29% in Q1 FY25
  Bangladesh's debt repayments reached USD 1.13bn for the July-September period, driven by a 31% rise in principal payments and 17% increase in interest payments Source

• Bangladesh Expects USD 5.65bn Budget Support
  The government is looking forward to USD 5.65bn in financial support from the IMF, World Bank, and ADB to drive economic reforms. Of the total, USD 3bn is expected from the IMF, USD 1.5bn from the World Bank, and USD 1.15bn from the ADB Source.

• Inflation Pressures Lead to Central Bank Rate Hike
  The Bangladesh Bank raised its key policy rate to 10% to tackle rising inflation, which could slow growth as businesses and consumers adjust to the higher borrowing costs Source.

• Revenue Collections Fall 6% in First Quarter
  The National Board of Revenue collected BDT 709,030mn in July-September, falling short by BDT 255,970mn due to reduced international trade and economic challenges Source.

Banking

• Bangladesh’s Excess Bank Liquidity Reaches BDT 1.9tn
  Bangladesh Bank reports a liquidity surplus of BDT 1.9tn in the banking sector due to increased depositor confidence and slower credit growth Source.

• Dollar Holdings Decline in Bangladesh’s Banks
  Commercial banks in Bangladesh are seeing a dollar shortage due to declining export earnings and halted central bank dollar sales Source.

• Government’s Bank Borrowing Up by BDT 65.68bn
  Due to reduced tax revenue, government borrowing from banks has sharply increased, raising potential private-sector credit concerns Source.

Trade & Commerce

• Gold Prices Reach Historic Highs
  Gold in Bangladesh has surpassed BDT ~140K+ per bhori, marking a record price as inflationary pressures persist Source.

• RMG Sector Sees Overflow of Orders
  Despite recent losses and competition, Bangladesh's apparel exporters report a surge in orders, mainly from the USA and Europe Source.

• Government Lowers Rice Import Duty by 37%
  To stabilize food prices, the government reduced rice import duty from 25% to 15%, allowing easier access for private importers Source.

• FMCG Sales Decline as Consumers Shift to Smaller Packs
  Fast-moving consumer goods sales dropped by up to 5%, with consumers opting for mini-pack sizes to manage inflation impacts Source.

International

• China’s Growth Falls to Lowest in Over a Year
  With consumption slowing and property sector debt mounting, China’s GDP growth has slowed, spurring further rate cuts Source.

• ECB Set to Reduce Rates as Eurozone Inflation Slows
  The European Central Bank is expected to cut rates again to counter falling economic activity across the Eurozone Source.

• IMF Adjusts Global Growth Outlook to 3.2% for 2024
  The IMF’s revised forecast expects global growth at 3.2% this year, with inflation gradually easing by 2025 Source.

Corporate

• HSBC Restructures with Major Unit Merger
  HSBC has merged its commercial and investment banking units in a cost-saving move to streamline operations under new CEO leadership Source.

• Renata Launches Parkinson’s Drug in Australia
  Renata, a top Bangladeshi pharmaceutical firm, launched its generic Dostamine in Australia, expanding its international footprint Source.

• Square Textiles Reports 1.3% Increase in Profit
  Square Textiles' profits rose to BDT 1,161.8mn for FY24, with a declared dividend increase to 32% from 30% last year Source.