Country Faces Record High Interbank Exchange Rate

A five-day internet outage in Bangladesh caused a sharp decline in digital banking transactions, revealing the sector's heavy reliance on stable internet connectivity. Following the launch of 4G and the Covid-19 pandemic, cashless transactions had surged.

Banks and NBFIs have been instructed by the central bank to waive fees and interest on delayed repayments for loans, savings schemes, and credit card bills from July 18 to July 25 due to recent country-wide unrest. This directive aims to support clients who may have missed payments amidst internet shutdowns and curfews.

NRB Bank has launched an offshore banking unit (OBU) with the slogan "Banking Beyond Boundary", inaugurated by chairman Mohammed Mahtabur Rahman at the bank's corporate head office in Dhaka, attended by vice-chairmen Golam Kabir and Mohammed Jamil Iqbal.

NRB Bank reported a profit of Tk 850 million in Q2 2021, up from a loss of Tk 28.5 million in the same quarter the previous year. The bank's foreign exchange gain and operational efficiency contributed to the turnaround. The bank's half-yearly results also showed positive results, with a profit of Tk 100 million in January-June 2021.

Banks in Bangladesh have reopened after three general holidays, but many lenders have faced cash withdrawal pressure and disruptions in foreign transactions. People have been queuing at branches and ATM booths to withdraw cash, with branches in Motijheel being crowded since the beginning of the day.

Excess liquidity in Bangladesh's commercial banks fell in May after months of growth, impacting overall fund management in the money market. According to Bangladesh Bank data, excess liquidity reached Tk 1.76 trillion in April 2024 but dropped to Tk 1.74 trillion in May. Uninvested cash also declined from Tk 84.09 billion in April to Tk 57.78 billion in May.