Liquidity stress at banks fuels call money rate

The ongoing strain on Bangladesh’s foreign exchange market and the growing demand for cash ahead of Eid-ul-Azha sent the inter-bank call money rate to at least a six-year high yesterday. The weighted average rate in the inter-bank call money market, where banks borrow from each other on an overnight basis, stood at 5.26 per cent in contrast to 5.01 per cent a month ago, and 2.44 per cent a year prior. The central bank injected a record $7.62 billion into the market in the fiscal year that ended on June 30, meaning an equivalent local currency amount has moved in the other direction, intensifying the liquidity crunch. Excess liquidity at banks stood at Tk 189,183 crore as of May, down 11 per cent year-on-year. The government borrowed Tk 64,755 crore from the banking system in FY2021-22 in contrast to Tk 26,078 crore the year before.

Source: https://www.thedailystar.net/business/economy/news/liquidity-stress-banks-fuels-call-money-rate-3065946

Exporters to get 20pc incentive

Exporters of diversified jute products such as food-grade bags, clothes, yarns and twines will receive a 20 per cent export incentive, according to a Bangladesh Bank notice. They, however, will have to ensure the use of the natural fibre equivalent to at least 50 per cent of the export price. The incentive for hessian, sacking and carpet backing cloth is 12 per cent. Jute and jute goods exports fetched $1.13 billion in the last fiscal year, down 2.91 per cent year-on-year.

Source: https://www.thedailystar.net/business/economy/news/exporters-get-20pc-incentive-3065906

UCB chairman re-elected

Rukhmila Zaman, Managing Director of Aramit Group, was unanimously re-elected as the Chairman of United Commercial Bank Limited in the 472nd Board Meeting held on Wednesday at the Corporate Office of UCB. Bashir Ahmed has been elected as Vice-Chairman of UCB. Director of Ronny Chemical Industries Ltd, Chairman of Navana Pharmaceuticals Limited, Chairman of UCB Fintech Company Limited UPAY, Anisuzzaman Chowdhury was re-elected as Chairman of Executive Committee of the Bank. M. A. Sabur has been re-elected as Chairman of the Risk Management Committee of the Bank.

Source: https://today.thefinancialexpress.com.bd/stock-corporate/ucb-chairman-re-elected-1657128841