Forex crisis spills over into call money market
The ongoing strain on Bangladesh’s foreign exchange regime has created cash shortages in the banking sector, sending the interbank call money rate to a 19-month high yesterday. The weighted average rate in the interbank call money market, where banks borrow from each other on an overnight basis, stood at 4.65 per cent yesterday in contrast to 3.52 per cent a month ago and 1.89 per cent a year prior. The previous peak was recorded in August 2020 when the rate stood at 4.7 per cent. This forced the Bangladesh Bank to inject a record $3.78 billion between July 1 and March 23 to keep the exchange rate of the taka against the dollar stable. This means banks have to spend more than Tk 32,500 crore to buy the dollars. One USD yields Tk 86.20 as per the current interbank rate. Between January and June, imports soared to $46.67 billion, up 46 per cent year-on-year. Exports increased 29 per cent to $27.97 billion.
March exports hit record $4.76b
Export receipts hit $4.76 billion in March, the highest ever on record in a single month, posting 55 per cent growth year-on-year as buoyancy remained in shipments of major manufactured goods such as garments, home textiles and leather footwear despite the Russia-Ukraine war’s effect on global trade. The previous record was of October 2021 when it reached $4.73 billion. With March, the total earnings from shipping goods abroad rose 33.4 per cent year-on-year to $38.6 billion in nine months since July of fiscal year 2021-22, providing much-needed support to the country’s foreign exchange reserves, which is under pressure amid ballooning imports. The foreign exchange reserve, which stood at $46 billion on December 29, 2021, stood at $44.25 billion on March 30, according to Bangladesh Bank.
Tax receipts jump 43pc in nine months
The government revenue earnings from Dhaka Stock Exchange (DSE) jumped 43 per cent in nine months of the current fiscal year compared to the same period last fiscal, powered by rising trading volume. The government bagged revenue worth Tk 3,256 million in nine months for July-March of the current fiscal year, as against Tk 2,274 million in the same period of the previous fiscal, showing a 43 per cent growth, the DSE statistics shows. Of the total earnings in July-March for the current fiscal, Tk 2,741 million came from the TREC holders’ commission, popularly known as brokerage commission, while Tk 515 million came from the share sales by sponsor-directors and placement holders, the DSE data shows. The DSE paid tax worth Tk 2.72 billion in FY2011-12, Tk 1.27 billion in FY2012-13, Tk 1.54 billion in FY2013-14, Tk 1.74 billion in FY2014-15, Tk 1.58 billion in FY2015-16, Tk 2.46 billion in FY2016-17, Tk 2.33 billion in FY2017-18 and Tk 2.51 billion in FY2018-2019 on TREC holders’ commission and share sales by sponsor-directors and placement holders.