Dhaka, Delhi close to start trading in taka, rupee

Bangladesh and India have agreed to settle a part of bilateral trade transactions in their own currencies to ease pressure on dollar holdings. To facilitate the cross-country transactions, Sonali Bank and Eastern Bank will open accounts in two Indian lenders – State Bank of India and ICICI Bank. The two Indian banks will also open similar accounts in the two Bangladeshi banks. Opening of these accounts – known as vostro and nostro accounts in global accounting – will require approval of respective central banks, officials of the Bangladesh Bank and relevant commercial banks said on Monday. Exports from Bangladesh to India are worth about $2 billion, transactions of which will be completed in rupees and takas. On the other hand, Bangladesh’s import from India in last fiscal year was about $13.69 billion, of which $2 billion, an equal trade value, will be traded in rupees, while the rest will be paid in US dollars as always.

Source: https://www.tbsnews.net/economy/dhaka-delhi-close-start-trading-taka-rupee-618338

Govt releases Tk 10 billion incentives for knitwear sector

The Ministry of Finance has released cash incentives of Tk 10 billion (1,000 crore) for the export-oriented knitwear sector. The ministry took the decision 11 days after receiving an application from Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) for financial support for payment of salary and Eid bonus ahead of Eid-ul-Fitr. The request for cash assistance was made to the government on March 30 in a letter signed by the BKMEA President AKM Salim Osman.

Source: https://today.thefinancialexpress.com.bd/trade-market/govt-releases-tk-10-billion-incentives-for-knitwear-sector-1681752939

Banks turning away from capital market, with investments far below limit set

As many as 32 scheduled banks have the scope of investing around Tk 37 billion more in total into the capital market, keeping their exposure to listed securities within the permissible limit on solo basis. At present, the lenders have a little over Tk 136 billion invested in equity and debt-backed securities, according to the Bangladesh Securities and Exchange Commission (BSEC). The regulator compiled the data as, BSEC Executive Director Mohammad Rezaul Karim said, it seeks to increase participation of institutional investors in the capital market that has been suffering from an acute liquidity crisis. It sent a letter last week to the 32 banks, requesting them to help stabilise the market through fresh investments. Banks can invest up to 25 per cent of their capital in listed securities on a solo basis and 50 per cent on a consolidated basis, according to the Bank Companies Act.

Source: https://today.thefinancialexpress.com.bd/stock-corporate/banks-turning-away-from-capital-market-with-investments-far-below-limit-set-1681753160