Bangladesh earns $17m from carbon credits, just the tip of the iceberg
Bangladesh earned its first-ever revenue from carbon credits – permits that allow the owner to emit a certain amount of carbon dioxide or other greenhouse gases – way back in 2006, when the Infrastructure Development Company Limited (Idcol) registered its maiden clean development mechanism project with the United Nations Framework Convention on Climate Change. Since then, Idcol has sold a whopping 2.53 million carbon credits, raking in $16.25 million, equivalent to Tk170 crore at current exchange rates. Most of this impressive carbon credit revenue came from improved cook stoves, while the remaining amount was generated from solar home systems. Five brick manufacturers that adopted clean technology to halve coal consumption and produce eco-friendly bricks received nearly Tk3 crore in carbon revenue. Thanks to their use of the Hybrid Hoffman Kilns (HHK) technology between January 2018 and March 2020, these brick-makers were able to cut down carbon dioxide emissions by 65,603 tonnes. Waste Concern, an NGO based in Dhaka, works towards promoting sustainable waste management practices. Through their efforts, they established the world’s first-ever compost plant and managed to reduce 62,200 tonnes of carbon, earning Tk25.67 lakh. However, it is noteworthy that they did not sell any carbon credits after 2014.
BB’s fund injection controlling call rate
The central bank’s growing fund injection to the market through various instruments is helping to control the interbank call money rate even ahead of the Eid-ul-Fitr, when the rate normally goes up following mounting liquidity demand, officials and bankers said. The instruments are repo, liquidity support facility, Islamic banks liquidity facility (IBLF), and Mudaraba liquidity facility (MLS). As a result, the interbank call money rate on a short-term or overnight loan continued to decline to 6.01 per cent as on April 06, from a record high of 7.0 per cent on January 25. Call money rate is the weighted average interest rate on a short-term or overnight loan from one bank to another to meet an urgent requirement. The call money rate started rising sharply from March 21, 2022, when it was at 2.05 per cent. Following the Russia-Ukraine war, volatility in the forex market, and mass fund withdrawal from the banks riding on rumours of liquidity shortfall, the demand for short-term interbank loans kept rising. As a result, the call money rate hit a record high of 7.0 per cent on January 25, 2023.
Brac Bank launches remittance application FXPAY
Brac Bank has launched FXPAY, an end-to-end commercial remittance application to provide accessible, fast and secure remittance services to institutional customers. FXPAY is a 360-degree commercial remittance system capable of performing business-to-business, business-to-consumer, consumer-to-business and consumer-to-consumer transactions in compliance with regulations, the bank said in a statement. The system can perform automated tax, value-added tax, encashment certificate, no objection certificate, Nostro funding checking and client intimation via email or text, the bank said. Selim RF Hussain, managing director and CEO of the bank, inaugurated the service at the bank’s head office in Dhaka.