Bangladesh Moves Towards Free-Floating Currency System

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 the adoption of a market-driven exchange rate on May 14, the interbank US dollar rate in Bangladesh rose slightly to Tk 122.78 from Tk 122.60 the previous day. Just two working days earlier, the rate was Tk 122.

Bangladesh Bank has announced a Tk 9.0 billion startup fund aimed at accelerating economic growth by providing capital to new enterprises. The fund will be distributed through commercial banks and is part of the government's initiative to foster innovation and investment in the startup sector.

Bangladesh's current account deficit (CAD) decreased significantly to $1.27 billion during the July-February period of FY25, down from $4.07 billion in the same period of the previous fiscal year. This improvement is mainly attributed to higher remittance inflows, which increased by 22.6%, and a 9.1% growth in export earnings. Consequently, the balance of payments (BoP) deficit also improved, dropping to $1.11 billion from $4.44 billion in FY24.