Bangladesh Bank Cuts Export Development Fund to $2.51B

Bangladesh Bank will release redesigned banknotes before Eid-ul-Azha 2025, featuring cultural and historical themes instead of full human portraits. The Tk20 note with images of Kantajiu and Buddhist temples will be issued on May 22.

Bangladesh is forming a dedicated fund to manage seized assets from money laundering cases. Recovered money will support affected banks in repaying depositors, while funds from non-banking crimes will aid the poor. BB Governor Ahsan H. Mansur confirmed over Tk 1.3 trillion in immovable assets and US$164 million abroad have been attached.

On Sunday, T-bill yields in Bangladesh showed a mixed trend as banks shifted preference toward longer-tenure securities. The yield on 91-day T-bills rose to 11.65% from 11.54%, while yields on 182-day and 364-day T-bills declined to 11.51% and 11.62%, down from 11.64% each.

Following Bangladesh’s decision to ban yarn imports via five land ports—Benapole, Bhomra, Sonamasjid, Banglabandha, and Burimari, which previously handled 30% of India’s yarn exports—Indian producers are shifting toward waterways and sea routes.

Bangladesh’s readymade garment (RMG) exports to the European Union (EU) soared by nearly 37% year-on-year to $3.69 billion in January–February 2025, supported by a 39% rise in shipment volumes. Despite this impressive growth, average unit prices fell by 1.46%, reflecting ongoing profitability challenges.

Bangladesh’s high import tariffs-averaging over 27%, nearly triple the global average-have long sparked debate but little reform due to concerns over revenue loss. With the country set to graduate from Least Developed Country (LDC) status next year, experts and business leaders stress the urgent need for tariff rationalisation to maintain export competitiveness.