Remittance Inflow Through MFS Hits 5-Year High

• WB Cuts FY25 Growth Forecast
  The World Bank has lowered Bangladesh’s FY25 growth forecast to 4%, citing financial sector reforms and liquidity challenges Source

• Remittance Inflow Through MFS Hits 5-Year High
  Bangladesh saw a record remittance inflow via Mobile Financial Services (MFS) of BDT 11,018mn in August 2024, a 113% YoY growth Source

• Debt Servicing in FY27 May Be Cushioned by Remittance
  Bangladesh’s external debt obligations will peak at $5.3bn in FY27, which can be covered by three months' worth of remittance inflows Source

• Exports Grow 6.78% in September
  Export earnings reached $3.51bn, driven largely by the Ready-Made Garments (RMG) sector Source

• Govt to Import 33,000 Tons of LNG
  The government will buy additional LNG (Liquefied Natural Gas) from the spot market, adding to its October purchases Source

• Bangladesh Seeks $3bn ITFC Loan for 2025
  The government is seeking $3bn in credit from the Islamic Development Bank to fund fuel, LNG, and fertilizer imports Source

• Bangladesh’s Rice Output Surpasses 40mn Tons
  Bangladesh’s rice production in FY24 crossed 40mn tons for the first time, a 4.1% YoY increase Source

Economy

• World Bank Cuts FY25 Growth Forecast for Bangladesh
  The World Bank revised its forecast for Bangladesh’s FY25 economic growth to 4%, down from 5.7%. The medium-term outlook remains optimistic, expecting growth to accelerate due to domestic reforms and trade improvements in FY26 Source

• Inward Remittance Through MFS Hits 5-Year High
  In August 2024, Bangladesh received BDT 11,018mn (USD 91.82mn) in remittances via Mobile Financial Services (MFS), a 113% YoY increase. This is the highest remittance flow through MFS in the last five years, driven by incentives and the convenience of using digital platforms Source

• Debt Servicing in FY27 May Be Cushioned by Remittance
  Bangladesh’s external debt payments will peak at USD 5.3bn in FY27. With remittance levels forecasted to remain strong, Bangladesh is expected to be able to manage its debt servicing without facing distress Source

• Private Sector Credit Growth Declines
  Private sector credit growth fell to 9.86% in August, down from 10.13% in July. A slowdown in business activities and liquidity constraints in the banking sector contributed to this decline Source

• Card Transactions Hit 27-Month Low in August
  Debit, credit, and prepaid card transactions dropped to a 27-month low, with credit card transactions decreasing 18% YoY to BDT 25,560mn. Debit cards also fell significantly, reflecting reduced consumer spending Source

Business

• Bangladesh Seeks $3bn ITFC Loan for 2025
  Bangladesh has requested USD 3bn from the Islamic Development Bank's International Islamic Trade Finance Corporation (ITFC) to fund imports of fuel, LNG, and fertilizers for 2025 Source

• Interim Govt Moves Forward with RCEP Access
  Bangladesh’s interim government is accelerating efforts to join the Regional Comprehensive Economic Partnership (RCEP). A study by the Bangladesh Trade & Tariff Commission suggests that RCEP membership could boost exports by 17% and GDP by 0.26% Source

• Govt to Import Another 33,000 Tons of LNG
  The government is purchasing an additional 33,000 tons of LNG from the spot market at USD 54.75mn, increasing its October imports Source

• Exports Grow 6.78% in September
  Bangladesh's exports reached USD 3.51bn in September, driven largely by the RMG sector. The Export Promotion Bureau aims to collaborate with commercial missions to target additional products and markets in the coming months Source

International

• IMF Approves Reforms to Cut Borrowing Costs by 36%
  The International Monetary Fund (IMF) has approved reforms that will reduce borrowing costs for its member countries by up to 36%. These changes include a reduction in the surcharges applied to heavily indebted nations Source

• China Opens USD 71bn Swap Facility to Boost Capital Markets
  China’s central bank launched a swap facility worth USD 71bn to encourage liquidity in its capital markets. The facility allows firms to use equities, bonds, and other assets as collateral for obtaining treasury bonds and central bank bills Source

• Russia Sets Price Floor for Wheat at International Tenders
  Russia’s agriculture ministry has set a minimum export price of USD 250 per metric ton for wheat, aiming to reduce domestic inflation while ensuring profitable exports Source