Bangladesh Bank yesterday brought ease to e-commerce payment methods meant for buyers abroad, a development that would draw more attention to Bangladeshi products from overseas consumers.Cross-border exports under e-commerce were earlier allowed only against payments received over the internet before shipment.From now on, local exporters will be allowed to realise the payment after shipping the goods, according to a central bank notice.This means foreign payment service providers, which are dedicated to settling transactions between overseas consumers and local exporters, will get relief from having to enable payments before the release of products by exporters, said a central bank official.
But such merchant service providers, which are third parties to help merchants accept payments, will have to maintain an adequate balance with local banks such that local exporters can smoothly receive payments against purchase of their goods.The payment service providers enable merchants in accepting credit and debit payments as well as fund transfers through internet banking.Bangladeshi products may further attract more foreign buyers in the global market due to the latest relaxation, said the central bank official. As per the central bank rule, banks can allow such exports from e-commerce websites for individual sales of up to $500 or equivalent under cash on delivery and payment on shipment.
Foreign direct investment to Bangladesh dropped last fiscal year, the first decline in seven years, because of the pandemic-induced slowdown in business and regulatory barriers. Net FDI nosedived 39 per cent year-on-year to $2.37 billion last fiscal year, data from the central bank showed. Although the financial meltdown caused by the coronavirus pandemic has taken a toll on the FDI flow, the whole situation should not be judged by the ongoing economic hardship alone, analysts say. Analyst added that FDI flow across the globe has declined in recent periods due to the financial crisis, which started in March.
Global FDI flows are forecast to decrease by up to 40 per cent in 2020, from their 2019 value of $1.54 trillion, according to the World Investment Report 2020 of the United Nations Conference on Trade and Development (UNCTAD) released in June. This will bring the global FDI below $1 trillion for the first time since 2005. In March, the International Monetary Fund said that investors had withdrawn $83 billion from developing countries since the beginning of the Covid-19 crisis, the largest capital outflow ever recorded.
Chief executives of global companies are now unable to visit their probable investment destinations due to the restriction, he said. In addition, the country’s FDI is shifting its pattern. In the past, foreign investors preferred investing in power plants, private hospitals, banks, and non-bank financial institutions. Now, they are thinking of investing in fintech, pharmaceutical industries, LNG plants, and agro-based manufacturing units.
The 33rd annual general meeting (AGM) of Bangladesh Insurance Association
The 33rd annual general meeting (AGM) of Bangladesh Insurance Association (BIA) was held on Monday on a virtual platform. President of BIA Sheikh Kabir Hossain presided over the AGM while chairmen, directors and chief executive officers of insurance companies were present.
Jamuna Bank Limited launched its agent banking operation with agent outlet M/S J Enterprise in Cumilla recently.
Jamuna Bank Limited launched its agent banking operation with agent outlet M/S J Enterprise in Cumilla recently. Mirza Elias Uddin Ahmed, Managing Director & CEO of Jamuna Bank Limited, officially inaugurated the agent banking operation.
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