A Tk 100b bet for boosting exports, forex earnings

A Tk100-billion bet is offered for boosting export and foreign-exchange earning as the central bank forms an export pre-finance scheme with the revolving fund under government drive for propping up reserves. People familiar with the development at the Bangladesh Bank told the FE Sunday that this opens up a new window for the exporters as the dollops of assistance from the existing EDF are dwindling day by day. The International Monetary Fund (IMF) has asked the central bank not to maintain the Export Development Fund or EDF with funds drawn from the foreign-exchange reserves, deemed under pressure amid the planet-wide financial crunch. The EDF is now worth US$ 7.0 billion. The central bank now pursues a policy wherein any inflow from the borrowers is not adding to the EDF further. It means that this way the EDF-fund size will be squeezing gradually. When contacted, Md. Mezbaul Hoque, an executive director and spokesperson for the central bank, told the FE: “The new scheme is just parallel to the EDF.” Exporters who have large value additions need extra funds and they can take additional resources from this new financing facility.

Source: https://thefinancialexpress.com.bd/economy/a-tk-100b-bet-for-boosting-exports-forex-earnings-1672627272

Remittance rises in December, record 11.25 lakh foreign jobs in 2022

Inward remittance maintained an upward trend in December for the second month in a row in the just-ended year that saw a seesaw movement in earnings from expatriates despite a record 11.25 lakh overseas jobs. Remittance inflow to the country increased by 4.23% year-on-year to $1.7 billion in December 2022 although full year earnings were lower than that of a year ago, Bangladesh Bank data show. However, the year ended with $21.29 billion sent home by workers abroad, down from $22.07 billion of the past year – a decline attributed to global economic slowdown and a surge in hundi transactions due to exchange rate mismatches. The figure is not commensurate with the whopping 82% growth in manpower export as overseas job market analysts believe it may take some more months for the newly-hired workers to be able to send money home. The record manpower export in 2022 was due to increased demand in some major destinations and opening of some new markets, according to the Bureau of Manpower, Employment and Training (BMET).

Source: https://www.tbsnews.net/economy/remittance-rises-december-record-1125-lakh-foreign-jobs-2022-561506

Tk102 per dollar for exporters

From Monday, businessmen will receive Tk102 per dollar for export proceeds, following a decision during a joint meeting of the Association of Bankers Bangladesh (ABB) and the Bangladesh Foreign Exchange Dealers’ Association (Bafeda) on Sunday. Managing directors of both public and private banks joined the meeting which finalised the new rate for exporters. However, the dollar rate for remittances has been left unchanged at Tk107.  “Banks will encash export proceeds at Tk102 from Monday,” Selim RF Hussain, ABB chairman and also the managing director of Brac Bank, told The Business Standard. On condition of anonymity, the managing director of a private bank told The Business Standard that the increase in the dollar price for export proceeds will also lead to an increase in the purchase price of dollars by banks. This is likely to cause a slight rise in the dollar price for import settlement. On 30 November 2022, the dollar rate for export proceeds was raised from Tk100 to Tk101, and was enforced from 4 December. Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), has praised the rise in the dollar rate for export proceeds. ”

Source: https://www.thedailystar.net/business/economy/news/malek-elahi-elected-mtb-chairman-vice-chairman-3209851