Remittance crosses $2b in first 29 days of May

Inward remittances to Bangladesh surpassed $2 billion in the first 29 days of May, marking a 38% increase compared to the same period last year. This brings the country’s remittances above the $2 billion mark for two consecutive months. In April, remittances through the country’s banking channels amounted to $2.04 billion. According to data from the Bangladesh Bank, remittances totalled $2.14 billion during 1-29 May, compared to $1.55 billion in the equivalent period in 2023. Remittance inflows from July to 29 May of the current fiscal year stood at $21.26 billion, compared to $19.27 billion during the corresponding period last year, marking a growth of 10.3%. Remitters are receiving at least Tk121 per dollar, with a 2.5% government incentive added to this.

Source: https://www.tbsnews.net/economy/remittance-crosses-2b-first-29-days-may-864486

Domestic goods now major inflation drivers: BB report

The influence of imported goods on inflation has decreased, while the impact of domestically produced goods has increased, according to a Bangladesh Bank report released Thursday. In January this year, the influence of imported goods on inflation fell to 27.5% from 32.3% in the previous month, mainly because food imports became cheaper. At the same time, the impact of locally produced goods on inflation rose to 72.5% from 67.7% due to higher prices for both domestic and non-food items, said the quarterly report titled “Inflation Dynamics in Bangladesh January-March 2024”. In January 2024, wage growth across all divisions was almost similar, with Sylhet experiencing the slowest growth. Since April 2022, inflation has remained on a higher trajectory compared to wage rate growth, implying lower purchasing power for consumers and a subsequent fall in real income.

Source: https://www.tbsnews.net/economy/domestic-goods-now-major-inflation-drivers-bb-report-864721

RMG export prices fall up to 16% in last 8 months

Export prices of locally made garment items have fallen by 8 percent to 16 percent year-on-year over the last eight months, according to data of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). International market prices declined mainly because of a fall in demand from end consumers suffering from high inflationary pressure due to the severe fallouts of Covid-19 and Russia-Ukraine war. Moreover, the volume of garments exported from Bangladesh to major markets also exhibited a declining trend over the past 10 months. For instance, the import of apparel from around the world by the US declined by 7 percent and by European Union (EU) by 13 percent in the July-April period of the current fiscal year. a recent government decision to not allow any investment to be made outside of export processing zones and special economic zones would have a negative effect on the inflow of such funds into the country. Bangladesh exported garment items worth $40.49 billion in the July-April period of the current fiscal year, according to data of the Export Promotion Bureau. In the same 10 months of fiscal year 2022-23, export earnings from the sector stood at $46.99 billion. The BGMEA has been trying to increase exports to new destinations like Turkey, Brazil, Argentina, Russia, South Africa and member countries of the Association of Southeast Asian Nations

Source: https://www.thedailystar.net/business/economy/news/rmg-export-prices-fall-16-last-8-months-3624331

Steel industry now a risky place for fresh investments

It has become extremely risky to invest in the steel industry of Bangladesh as the country is suffering from economic vulnerability amid sustained inflationary pressure. Besides, the combined production capacity of local steelmakers already exceeds domestic consumption by around 41 percent, indicating an oversaturated market. The steel industry’s overall production capacity was about 1.10 crore tonnes last year against demand for 65 lakh tonnes, according to Sumon Chowdhury, secretary general of the Bangladesh Steel Manufacturers Association (BSMA). There are around 120 steelmakers in Bangladesh, with some 40 large companies dominating more than 90 percent of the market, Chowdhury said in a recent interview with The Daily Star. Referring to the BSMA’s latest market assessment, he said steel consumption amounted to about 75 lakh tonnes in 2019 but reduced last year as the implementation of development projects slowed in the face of reduced public spending.

Source: https://www.thedailystar.net/business/economy/news/steel-industry-now-risky-place-fresh-investments-3624326

AkijBashir set to enter glass market, invests Tk 2,200cr

AkijBashir Group is set to soon offer different types of high-end glass used in construction, seeking to grab a share of rising sales amounting to around Tk 2,600 crore annually. Akij Glass Industries, a concern of the group, has invested around Tk 2,200 crore to set up a factory on over 125 acres of land in Madhabpur upazila of Habiganj, some 114 kilometres east of capital Dhaka. Initially, high-end float glass will be manufactured and the production capacity will be 600 tonnes per day. The company has mobilised sophisticated machinery and equipment from Europe to ensure quality in the manufacturing process. Referring to their market assessment, he said 5.15 lakh tonnes of glass was used in construction in Bangladesh every year and the amount has been growing by 15 percent on an average over the past decade due to rapid urbanisation. Industry insiders believe the country annually consumes around 3.5 lakh tonnes of glass, including float, reflective and soundproof ones, leading to market sales of no less than Tk 2,600 crore if present prices are considered.

Source: https://www.thedailystar.net/business/economy/news/akijbashir-set-enter-glass-market-invests-tk-2200cr-3624336

BRAC Bank promotes Offshore Banking product ‘Bondhon’

BRAC Bank has promoted its offshore banking deposit product ‘Bondhon’ among expatriate Bangladeshis in New York. At the Offshore Banking Fixed Deposit Outreach Program in New York City on May 24, Selim R. F. Hussain, managing director and CEO of BRAC Bank, highlighted the benefits of the product, specially designed for expatriates. The product brings about a wide range of savings and investment opportunities with up to 8.57 per cent interest. Depositors will enjoy tax free benefits and a flexible tenure of 3 months to 5 years.

Source: https://today.thefinancialexpress.com.bd/stock-corporate/brac-bank-promotes-offshore-banking-product-bondhon-1717260434