The newly imposed 20% reciprocal tariff on Bangladeshi exports to the US took effect at 10am Wednesday, prompting a rush from Chattogram Port with an extra 800 containers daily and 15,400 twenty-foot containers across 19 port depots by 8am, mostly bound for the US. The rush choked the Dhaka-Chattogram Highway, stretching the 20-minute 20km journey into 2–3 hours. Officials said cash incentives are unlikely to be squeezed further before Bangladesh’s LDC graduation, keeping rates unchanged for the first six months. On the other hand, Bangladesh’s Purchasing Managers' Index rose 8.4 points to 61.5 in July on robust manufacturing and services growth.

Forex reserves crossed the USD 25 bn mark for the second time this year, reaching USD 25.05 bn as remittance and export inflows strengthened. In the first five days of August alone, remittance inflow surged 81.6% YoY to USD 328 mn, up from USD 181 mn in the same period last year. The government plans to restrict the splitting of large public procurement packages to curb tender-related fraud and ensure transparency. Meanwhile, a South Korean firm is set to invest USD 8 mn in the Mongla EPZ, signaling growing investor interest.

Market continues to fall for the 3rd consecutive day. The broad market DSEX index went down by 63.08 points (-1.15%) to close at 5,408.07 points at the day's end. Market movement today was driven by negative changes in the market cap of Bank, Travel & Leisure, and Paper & Printing scrips amid positive changes in the market cap of Life Insurance and Tannery Industries scrips.

Broad market snaps 8-week winning streak. The broad market DSEX index went down by 35.35 points to close at 5,408.07 (-0.65%) points at the day's end. Market movement this week was driven by negative changes in the market cap of Bank, General Insurance, and Financial Institutions scrips amid positive changes in the market cap of Fuel & Power, Pharmaceuticals & Chemicals, and Life Insurance scrips.

Exports hit a 32-month high in July, rising nearly 25% YoY to USD 4.77 bn, driven by pharmaceuticals, leather, engineering goods, and increased RMG shipments, which also helped push forex reserves above USD 30 bn amid stronger remittance and export earnings. Inland container depots (ICDs) are facing backlogs due to the export surge, straining storage and handling. Meanwhile, net sales of savings tools improved in FY25, ending with a BDT 60.63 bn deficit—better than FY24’s BDT 211.24 bn shortfall—despite June’s dip of BDT 1.69 bn. In response to slow foreign fund utilisation, the government has tightened foreign loan rules, requiring detailed planning and documentation before disbursement.

Market continues to fall following profit taking. The broad market DSEX index went down by 14.75 points (-0.27%) to close at 5,471.16 points at the day's end. Market movement today was driven by negative changes in the market cap of Bank, Travel & Leisure, and Financial Institutions scrips amid positive changes in the market cap of Paper & Printing, Life Insurance, and Jute scrips.

Market continues to fall following profit taking. The broad market DSEX index went down by 14.75 points (-0.27%) to close at 5,471.16 points at the day's end. Market movement today was driven by negative changes in the market cap of Bank, Travel & Leisure, and Financial Institutions scrips amid positive changes in the market cap of Paper & Printing, Life Insurance, and Jute scrips.

Remittance surged 30% YoY in July, reaching USD 2.47 bn, as over 4 mn Bangladeshis went abroad for work in the last four years, aiding the recovery of the foreign exchange crisis and improving the Balance of Payments. In an effort to boost domestic revenue, the NBR has made online income tax return filing mandatory for all individual taxpayers starting this fiscal year, targeting 3.5 mn online submissions in FY26—double last year’s 1.7 mn. Meanwhile, the Bangladesh Bank has suspended the interoperable digital platform Binimoy, launched in 2022, due to irregularities and breach of contract.

Bangladesh’s external balance swung to a surplus in FY25 after three years, supported by strong remittance inflows, foreign aid, a flexible exchange rate, and tighter fiscal measures. In July alone, remittance inflow rose 32% YoY to USD 2,368 mn, up from USD 1,794 mn in the same period last year, according to Bangladesh Bank data. To sustain macroeconomic stability, the central bank continued its tight monetary stance in the H1 FY26 MPS, keeping the policy rate unchanged at 10%, while lowering the private sector credit growth target amid reduced appetite due to political uncertainty. Meanwhile, the ADB has extended USD 150 mn to upgrade Bangladesh’s technical education, aiming to train at least 10,000 TVET teachers nationwide.

MPS for H1 FY26 is set to announced today and it is expected to slash the private sector credit growth target, while keeping the policy rate unchanged. As reported by Bangladesh Bank, Remittance inflow surged by 31.5% YoY to USD 2,276 mn in the first 29 days of July, up from USD 1,734 mn a year ago. Meanwhile, the country’s tax-to-GDP ratio (NBR part) declined to 6.56% in FY25 from 7.2% in FY24, raising concerns over weak domestic revenue. On the external front, the third and final round of tariff talks with the US—following President Trump's 35% tariff imposition from August 1—entered its second day, with officials reporting positive responses so far.

DSEX crosses BDT 10-bn turnover for the first time since Sep 2024. The broad market DSEX index went up by 91.22 points (1.70%) to close at 5,443.42 points at the day's end. Market movement today was driven by positive changes in the market cap of Bank, Food & Allied, and Paper & Printing scrips amid negative changes in the market cap of Travel & Leisure, Tannery Industries, and Ceramics scrips.

The Bangladesh Bank (BB) is set to announce the monetary policy statement (MPS) for the first half of FY26 on Thursday, with Governor Dr Ahsan H Mansur scheduled to unveil it at a press conference at the central bank headquarters. In an effort to stabilize the foreign exchange market under IMF guidance, BB has also formed a USD 500 mn forex intervention fund, as disclosed in its Monetary Policy Review 2024-25. Meanwhile, the longstanding export data gap between the Export Promotion Bureau (EPB) and BB persisted, reaching USD 3.66 bn in FY24 despite reconciliation efforts. In positive news, Hong Kong-based Handa Industries Co has announced a USD 250 mn investment in Bangladesh, which is expected to create 25,000 jobs, according to Chairman Han Chun during a meeting with Chief Adviser Muhammad Yunus on July 29

DSEX gains after 3 losing sessions. The broad market DSEX index went up by 53.73 points (1.01%) to close at 5,352.20 points at the day's end. Market movement today was driven by positive changes in the market cap of Bank, Paper & Printing, and Financial Institutions scrips amid negative changes in the market cap of Telecommunication, Engineering, and IT scrips.

Bangladesh is seeking to reduce the proposed 35% tariff on its exports to the US to around 10–20% during the third and final round of negotiations, scheduled from July 29 to 31. A delegation left for Washington yesterday to attend the talks, as the new tariff is set to be imposed from August 1. Meanwhile, the National Board of Revenue (NBR) incurred a record revenue shortfall of BDT 926.25 bn in FY25, mainly due to disruptions from the July uprising and internal protests in June. Foreign debt rose to USD 74.34 bn by the end of FY25—an 8% increase—driven by a record USD 3.41 bn in budget support loans. Almost half of the USD 8.11 bn in foreign aid received during the year was spent on repayments, which amounted to USD 4.087 bn, according to ERD data.

Bangladesh's remittance inflow rose sharply by 23.97% year-on-year, reaching USD 1.93 bn in the first 26 days of July, ahead of Eid. Meanwhile, a high-level delegation is heading to Washington today for the final round of US tariff talks, as the government prepares to purchase 25 aircraft from Boeing in a strategic move to ease negotiations over a proposed 35% reciprocal tariff on exports. On the external front, the country's foreign debt servicing cost crossed USD 4 bn for the first time in FY2024-25, marking a 21% increase from the previous year. Additionally, import LC openings hit a 58-month low in June, reflecting falling investment and weak consumer demand amid persistent inflation and sluggish wage growth.