Escalating Unrest in Bangladesh Amid Protests and Economic Volatility

Bangladesh is facing significant turmoil as over 10,000 individuals have been arrested and the major opposition party, Jamaat-e-Islami, has been banned under anti-terror laws amid escalating protests against government job quotas.

The unrest, which began with student demonstrations in June, has turned deadly, resulting in at least 266 deaths and over 7,000 injuries. Activists accuse Prime Minister Sheikh Hasina’s government of authoritarian repression, including arbitrary detentions and enforced disappearances. Despite the crackdown, protest leaders remain determined, citing widespread public support for their broader anti-government campaign, which demands justice for victims of violence and calls for Hasina’s resignation.

Compounding the unrest, the price of the U.S. dollar has surged by around 5% in the Bangladeshi kerb market due to volatility triggered by the protests. The dollar was trading at 124 to 125 taka in Dhaka, up from 118 to 119 taka just two weeks prior. This fluctuation is attributed to a reduction in remittance inflows, exacerbated by an internet blackout affecting banking channels. As the situation intensifies, fears of further violence loom large.