Bangladesh Bank Cuts Export Development Fund to $2.51B

Bangladesh's ready-made garment (RMG) exports to the European Union (EU) recorded a 2.47% year-on-year decline in the first nine months of 2024, fetching €13.43 billion compared to €13.77 billion during the same period last year, according to Eurostat. This dip aligns with the EU's overall apparel import decline of 2.48% to €62.86 billion, driven by the global economic slowdown.

Bangladesh's leather footwear exports reached $228.47 million during the July-October 2024 period, marking a five-year high and a 9% increase from $182.11 million in the same period of 2023, according to the Export Promotion Bureau. This growth is attributed to competitive labor costs and orders shifting from China due to its rising production costs.

At the Bangladesh Economic Conference on November 11, Bangladesh Bank Governor Ahsan H. Mansoor highlighted that no new currency has been printed over the past three months to address liquidity issues. Instead, alternative strategies are being implemented, reinforcing the bank’s commitment to a stable financial sector despite past challenges, including substantial funds lost to fraud over 15 years.

Bangladesh's merchandise exports grew by 20.6% in October 2024, reaching $4.13 billion, with the RMG sector leading the way, contributing $3.30 billion. This growth reflects recovery in key markets and the stabilization of labor unrest, allowing for a return of orders previously shifted elsewhere

Bangladesh Bank Governor announced that controlling inflation may take 12 to 18 months, following October’s inflation spike to 10.87% due to recent floods and wage pressures. Speaking after a meeting on inflation management, the governor highlighted ongoing efforts to stabilize prices ahead of Ramadan, including a directive for banks to waive LC margins on essential goods imports and temporarily lift the single-borrower limit for big importers

Bangladesh's current account deficit shrank by 93% in the first quarter of FY25, thanks to a significant increase in remittances. From August to October, remittances totaled $7.03 billion, up 43% from $4.9 billion in the same period last year. This surge is attributed to the change in government in August, contributing to a decrease in the current account deficit to $127 million, compared to $1.83 billion during the same period last fiscal year.