Govt. aims to increase money supply to 16.5pc in next two fiscals
The government has fixed a target to increase the money supply to 16.5 per cent from the existing 15.6 per cent in the next two fiscals.As per a government document, in 2022-23 fiscal, the rate of the money supply is at 15.6 per cent.For the next 2023-24 fiscal, the government has projected to increase the rate to 16 per cent and for 2024-25 fiscal it will be 16.5 per cent.Academically, the enhancement of the money supply might increase inflation. This kind of target of ‘broad money’ growth would further invite inflation in the country, reports UNB.”Broad money” – or M2 – is a calculation of the money supply that includes all components of “narrow money”, such as cash and checking deposits, and also “near money” such as savings deposits, money market securities, and other time-related deposits.M2 is a broader measure of money supply and is being closely watched as an indicator of money supply and future inflation, and as a target of central bank monetary policy.If broad money exceeds nominal GDP growth, academically, commodity prices will take another steep jump, leaving limited-income consumers and the poor to bear the brunt of the increasing squeeze on the cost of living.In the 2020-21 fiscal year the money supply was 13.6 per cent.In 2021-22 fiscal the proposed money supply rate was 13.8 per cent, but the revised rate was 15 per cent.
BSEC plans cash dividend transfer to BO accounts to spur reinvestment
The securities regulator has been thinking hard about introducing a provision that will require cash dividends to be deposited into investors’ BO (beneficiary owner’s) accounts, instead of bank accounts, so that cash is readily available for reinvestment in stocks.Increasing liquidity flow into the money market is the objective as the discussion has continued on the transfer of dividends against securities, sources said.The Bangladesh Securities and Exchange Commission (BSEC) is to make the move when the daily turnover tumbled and has stayed below Tk 10 billion for more than a month.Most of the stocks have been stagnant at the floor prices, with selling pressure much higher than buy orders as investors wait for further price corrections.Therefore, those who would like to sell some assets to buy new securities are unable to do so.Asked if the BSEC is considering the provision as a short- or long-term solution, Chairman ShibliRubayat Ul Islam said, “We are reviewing the options” but it is highly likely to stay for long.
Bepza moves to stop use of fake import permits
Bangladesh Export Processing Zones Authority (Bepza) has taken a number of steps, including connecting to customs management software, to prevent the use of fake import permits following the detection of such malpractices this year. Import permits are issued by Bepza against every import of listed export-oriented companies for the lifting of duties.Earlier, customs officials had to log in to the Bepza website every time they had to check the authenticity of an import permit.Moreover, companies based inside export processing zones import goods through a one stop service which get clearance through nominal scrutiny, alleged a customs official.Customs officials said a section of importers took advantage of these submitting fake import permits during rush hours.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|Nikkei 225||$28,043.07 ||↓113.14||↓0.40%|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$76.48 ||↓ 0.80 ||↓ 1.04%|
|Crude Oil (Brent)||$82.00 ||↓ 0.70 ||↓ 0.85%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 102.0300||BDT 103.3000|
*World Commodities & Local and Global Stock Indices data are taken from bloomberg.com<
* Exchange Rates are taken from BB website, as on latest update.<