Bangladesh's Trade & Finance Growth Amid Adaptation

• Pharma exports hit a record USD 92.6mn in November as Bangladesh captured new markets and secured larger orders Source

• Non-leather footwear exports climb 41% in FY25, nearing USD 500mn, with strong growth in athletic and synthetic products Source

• The remittance dollar rate reaches an all-time high of BDT 127, reflecting global economic pressures and local liquidity challenges Source

• Bangladesh Bank to implement flexible exchange rate policy to align with IMF recommendations and market trends Source

• IMF expands loan package to USD 5.3bn for Bangladesh, with an additional tranche of USD 645mn approved for macroeconomic stability Source

• Taskforce initiated for semiconductor industry roadmap to expand testing, assembly, and manufacturing capabilities Source

• Payra power plant halts production for maintenance and tests new units, ensuring future reliability in energy supply Source

• Fresh Aman paddy fetches higher prices despite yield concerns, as market demand boosts farmer earnings Source

• ADB provides USD 600mn loan to Bangladesh for structural reforms in public investment and trade logistics Source

• Bangladesh sees USD 4.12bn export earnings in November, marking a 15.3% YoY growth driven by key industries Source

Economy & Banking

• IMF Expands Loan Package to USD 5.3bn: Bangladesh received USD 645mn as the fourth tranche under its existing IMF loan program, alongside an additional USD 700mn, bringing the total package to USD 5.3bn Source

• Remittance Dollar Rate Hits Record High of BDT 127: Exchange houses and overdue payment pressures pushed the remittance dollar rate to an all-time high, reflecting local economic headwinds Source

• ADB Signs USD 600mn Loan Agreement with Bangladesh: The loan will finance structural reforms in public investments, governance, and trade policy Source

• Bangladesh's Current Account Deficit Narrows: The deficit was reduced by 76.2% to USD 752mn during July–October FY25, driven by higher remittance and export earnings Source

• High-Stakes Government Securities Boom: The market for government borrowing surged to BDT 6tn, reflecting higher participation from investors seeking risk-free returns Source

• Consumer Financing Declines Amid Inflation: Loans for consumers dropped to 8.6% of total credit as interest rates and inflation deter borrowing Source

Trade & Commerce

• Non-Leather Footwear Exports Surge by 41% in FY25: Athletic and synthetic footwear exports brought in USD 217.81mn in the first five months, nearing the half-billion-dollar export club Source

• Fresh Aman Paddy Reaches Higher Prices: Aman paddy prices rose to over BDT 1,400 per maund due to increased market demand, despite concerns over yield losses from heavy rainfall Source

• Power Sector Expansion Underway: The Payra power plant temporarily shut down for maintenance and new unit testing, ensuring improved reliability and capacity in energy supply Source

• Price of Garments to the US Drops in 2024: Key Bangladeshi exports, such as cotton woven trousers and knitwear, saw prices decline up to 7.7% amid inflationary pressures in the US Source

• Green Financing Declines in Q3 2024: Green financing by banks dropped by 5.64%, while sustainable finance investments also fell sharply, signaling challenges in the green energy transition Source

Corporate Developments

• Bangladesh Development Bank to Sell 1mn ICB Shares: The state-owned lender plans to reduce its stake in the Investment Corporation of Bangladesh to meet financial goals. Source

• Beximco Suspends Apparel Production Until January 2025: The company laid off nearly 40,000 workers, citing order shortages and inability to secure raw material imports Source

• Brokers Seek Extended Provisioning Period Until 2030: Stock brokers proposed a phased approach for provisioning against negative equity, citing financial challenges. Source

International

• Oil Prices Adjust Amid Anticipated Fed Rate Cuts: Oil prices eased from their peak as traders await Federal Reserve decisions, with expectations for interest rate reductions boosting market optimism Source

• Eurozone Business Activity Contracts Further: Despite some recovery in services, manufacturing activity continued its 21-month decline, indicating prolonged economic challenges Source