WE ARE OPEN ON FRIDAY AS WELL!

Adoption of a market exchange rate is a smart policy move

May 16,2025

• Bangladesh shifting to a market-based exchange system led to decrease the demand for dollar, driven by a change in asset preference and reduction in the unofficial exchange rate. This move is likely to bring economic stability in the market by aligning exchange rate with market dynamics which could foster a resilient financial environment.

• Flexible exchange rate is considered significant structural reform that will revamp and inhence the Bangladesh’s investment climate and global competitiveness by allowing BDT to reflect the true market value, the policy aims to attract more investments and support export growth. (Read more here)

Economy on path to recovery: experts

May 16,2025

• Country has progressed significantly in infrastructure and financial stability and showing recovery after months of slowdown. Pointed out dissolution of the National Board of Revenue and Bank resolution order ordinance 2025, which strive towards long-term financial stability

• Ashikur Rahman also highlighted the erosion of social cohesion and public trust still pose a significant challenge and long-term threat. He called for hard reforms and clear policy stability. (Read more here)

Bangladesh must prepare strategically, say experts

May 16,2025

• Experts call for advance and strategic preparation as Bangladesh will graduate from LDC status in 2026. Loss of this privilege will require significant development in product and overall export quality, diversification and exploring new market to maintain global competitiveness.

• To support exporters, expert recommended to extend back-to-back letter of credit (L/C) facilities beyond 100% export-oriented firms. This aims to improve access to bonded warehouse facilities for Non-RMG sectors. This will make the Facilitation pre finance fund (EFPF) more productive by increasing its ceiling and lowering interest rates (Read more here)

Interest payments, subsidies soak up almost half of budget

May 16,2025

• Interest payment has reached more than 75,000 crore BDT between July and January, which has increased by 27% year or year. Deprecation of BDT, higher yields on treasury bonds and foreign interest rates are the main cause of the rising debt servicing cost. 113,500 has been allocated for debt servicing in the 2024-25 budget.

• Subsidy payments has bee sky-rocketed as well. Power sector subsidy has increased to 62,000 crore BDT in the revised estimation. (Read more here)

WB approves $270m to support Bangladesh’s flood recovery

May 16,2025

• World bank approved $270 million aid to Bangladesh flood recovery and enhance resilience against future climate-based disaster. This fund will rebuild flood infrastructure in Sylhet and Chittagong, aiming to protect 1.6 million people.

• Additionally, this fund will also promote climate-resilient agriculture and improve life of flood affected people by providing temporary jobs, skill development training and financial assistance targetting over 3,80,000 people. (Read more here)

Stock Market BD:

May 16, 2025

Major crisis hits the stock market, DSEX at 5-year low

• DSEX fallen to its lowest level since 2020. The decline is a persist of a on-going downward trend, where share price dropping daily and investors loosing confidence.

• On the last trading day, Majority of the company ended up in red lines. 317 entities saw a price declines where only 42 gained and 36 remain unchanged. (Read more here)

Telecommunication

Govt to act if telcos don’t cut internet prices

May 16, 2025

• Assistant to the chief adviser, Faiz Ahmad Taiyeb, announced actions if local telco don’t reduce internet prices as bandwidth costs already have been lowered. He expect these reduction reflected in the consumer pricing as well.

• Taiyeb expressed, the government wants to ensure affordable and quality internet and failing to co-operate with the government will push the government to address unresolved financial issues and KPI in a biliteral discussion (Read more here)

RMG

Apparel sector needs $6.6b investment to cut carbon emission by half: Report

• RMG, which contributes over 80% over the economy facing immense pressure from buyers and global brands to adopt carbon emission strategy. Textile industry need at least $6.6 billion to reduce carbon emission by 50% by 2030 but only 1.8 billion is available, leaving a gap of $4.8 billion.

• Textile industry is highly relied on energy consumption, water and chemicals across the supply chain which is the primary reason of environmental degredation and carbon emission. (Read more here)

Footwear industry

Bata’s profit doubles in Q1

May 16,2025

Bata shoe company announced 100% year on year increase in profit for the 2025 first quarter, touching 36.83 crore BDT. Revenue rose by 28% and reached 358.18 crore BDT given improved economic condition and strong sales during eid. (Read more here)

Banking Industry

Pubali Bank’s profit up 4% in January-March

May 16,2025

For the January-March quarter, Pubali bank reported 4% jump on the year-on-year profit, totalling BDT 185.28 crore BDT. Earning per share increased by 0.06 from the previous 1.54. Net operating cash flow per share has doubled from 9.25 to 19.69, due to High-yield landing, cost optimization and diversification of fee and commission income. (Read more here)

Global Economy headlines

Trump to Keep 30% China Tariffs Till Late 2025, Analysts Say (Bloomberg)

India Central Bank to Discuss Liquidity Management With Lenders (Bloomberg)

US recession doesn’t seem so likely anymore (FT)

Japan’s Economy Shrinks for First Time in a Year (WSJ)

Taxing the rich (Bloomberg)

Global business and Earnings

Walmart says it will hike some prices due to tariffs. Here’s what that means for shoppers (CNBC)

Big Chinese companies like Alibaba show that AI-powered ads are giving shopping a boost (CNBC)

Coinbase Says Cybercriminals Stole Customer Data, Sought Ransom (WSJ)

Exro Technologies (EXROF): Reported Q1 revenue of $4.4 million, missing estimates, with a net loss widening to $23.5 million; the company is implementing cost-cutting measures amid financial challenges (CNBC finance)

Century Therapeutics (IPSC): Achieved Q1 revenue of $109.16 million, surpassing estimates, and posted a net income of $76.6 million, marking a significant turnaround from a loss in the previous year, driven by strategic partnerships.(CNBC finance)

RenovoRx (RNXT): Generated approximately $200,000 in Q1 revenue from initial commercial sales of RenovoCath®, exceeding expectations, while maintaining a strong cash position of $14.6 million to support ongoing clinical trials. (CNBC finance)

Bit Digital (BTBT): Reported Q1 revenue of $25.1 million, down 17% year-over-year, with a notable shift as cloud services revenue grew by 84% to $14.8 million, offsetting declines in bitcoin mining revenue.(CNBC finance)

Bridgeline Digital (BLIN): Posted Q1 revenue of $3.88 million, slightly below estimates, with a net loss of $0.10 per share; however, the company secured $2.7 million in new contracts, enhancing its recurring revenue pipeline.(CNBC finance)