Budget to be placed on June 1

Finance Minister AHM Mustafa Kamal is scheduled to present the national budget for fiscal year 2023-24 on June 1. This year the budget will be presented earlier than the previous occasions because of the Eid-ul-Azha, one of the largest religious festivals for Muslims. The government wants to finish the next national budget before the vacation of Eid-ul-Azha. The budget of the 2023-24 financial year will be around Tk 759,955 crore, which will be the highest-ever budget in the history of Bangladesh. The National Economic Council is scheduled to announce the new annual development programme of Tk 2.74 lakh crore on May 11, according to an official of the planning commission.

Source: https://www.thedailystar.net/business/economy/news/budget-be-placed-jun-1-3314751

Forex reserves fall to $29.77b after ACU payments

The country’s foreign exchange reserves have fallen to $29.77 billion as Bangladesh Bank cleared import bills to the tune of $1.18 billion through Asian Clearing Union (ACU). The reserves stood at $42.20 billion in May last year, meaning that the amount decreased by 29.45 per cent over the past year, showed central bank data. With Bangladesh Bank having made the payment to the ACU last week, the funds were adjusted from the country’s foreign exchange reserves on Sunday. Remittance, the cheapest source of US dollars for Bangladesh, declined 16.27 per cent year-on-year to $1.68 billion in April. However, the flow was up 2.36 per cent to $17.71 billion in the first 10 months of fiscal year 2022-23. Export earnings dipped 16.52 per cent to $3.95 billion in April, data from the Export Promotion Bureau showed yesterday. But it was up 5.38 per cent to $45.67 billion during the 10-month period. Although import bills fell 10.27 per cent to $48.79 billion in the first eight months of 2022-23, it was not enough to stop the depletion of the forex. Import data for March and April have not been published yet.

Source: https://www.thedailystar.net/business/economy/news/forex-reserves-fall-2977b-after-acu-payments-3314746

Interbank dollar rate hits record Tk108

The interbank dollar rate, at which one bank sells dollars to another, rose to a record Tk108, but transactions on the platform were poor due to a shortage of greenbacks in the country. And the country’s foreign currency reserves have dipped to $29.78 billion. According to data from the central bank, banks on Sunday transacted dollars among themselves between Tk107.30 and Tk108. According to bankers, the interbank dollar rate has risen mainly due to an increase in remittance rates. Earlier on 30 April, the Association of Bankers Bangladesh (ABB) and Bangladesh Foreign Exchange Dealers’ Association (Bafeda) raised the dollar rate by Tk1 to Tk108 for remitters. According to a Bafeda report, banks traded $1 million at the rate of Tk107.30 and $50,000 at the rate of Tk108 on the interbank system on Sunday.

Source: https://www.tbsnews.net/economy/banking/interbank-dollar-rate-hits-record-tk108-transactions-poor-628514