FDI slips but stays above $3b

Foreign direct investments to Bangladesh snapped its rising trend in 2023, highlighting the nervousness outside investors face in pumping money into a country whose foreign exchange regime is experiencing one of its worst periods in recent times. Central bank data showed yesterday that Bangladesh received $3.004 billion in FDI last year, a decrease of 14 percent from $3.5 billion in 2022. Inflows of equity capital, which refers to investors’ purchase of shares of an enterprise in a country other than their own, plummeted 31 percent to $705.83 million from $1.14 billion in 2022. Reinvested earnings, which happen when a company ploughs back its profits instead of repatriating, declined 12.1 percent to $2.21 billion. Intra-company loans, however, rose to $88.91 million from a negative $57.65 million in 2022. In 2023, gross FDI inflows were $3.97 billion, recording a decrease of 17.8 percent compared to 2022. The trend has continued in 2024.

Source: https://www.thedailystar.net/business/news/fdi-slips-stays-above-3b-3621756

Allocation for interest payments to rise 38%

Nagad is all set to get licence for its ‘Nagad Digital Bank’, as it has successfully met the criteria after getting the letter of intent (LoI) from the central bank in October last year. The banking watchdog has also decided to give six months’ time to the proposed Kori Digital Bank to meet the LoI criteria — the conditions which a digital bank should fulfil to get a licence. Nagad is now running its mobile financial services (MFS) operation without receiving a full-fledged licence from the central bank as it did not fulfil all licensing criteria.

Source: https://www.thedailystar.net/business/news/nagad-digital-bank-all-set-get-licence-3621216

US businesses want continuation of tax policy in Bangladesh

US businesses want continuation of the existing tax policy to increase investment in Bangladesh, Salman F Rahman, prime minister’s private industry and investment adviser. He made the comment after a meeting with the executive business delegation of the US-Bangladesh Business Council, held at the office of Bangladesh Investment Development Authority in Dhaka. Senior officials from different companies, including Boeing, Excelerate, Amazon, Meta and Visa, attended the meeting. Many foreign companies are coming forward to use artificial intelligence (AI) in the agriculture sector and they want to invest in Bangladesh, as they believe the country has investment-friendly environment.

Source: https://www.thedailystar.net/business/news/us-businesses-want-continuation-tax-policy-bangladesh-salman-f-rahman-3620426

Mr. Arup Haider new DMD of City Bank

City Bank has recently appointed Mr. Arup Haider as deputy managing director (DMD) within its top management team. Mr Arup previously played the role of head of retail banking as a senior executive vice president at the same bank. Mr Arup joined City Bank in 2016 and made significant contributions to the growth of its retail banking business. He transformed the bank’s credit and collection processes before assuming the role of head of retail banking in 2018. His efforts were instrumental in ensuring City Bank’s prominence in the credit card business as well. Additionally, Arup played a key role in making Citytouch, the bank’s digital banking platform, one of the most popular platforms for retail banking in the market.

Source: https://today.thefinancialexpress.com.bd/stock-corporate/arup-haider-new-dmd-of-city-bank-1716914987

China invests $47 billion in largest ever chip fund

China has poured more than $47 billion into the country’s largest-ever chip investment fund, a business database showed on Monday, as Beijing seeks self-sufficiency in the crucial semiconductor manufacturing sector. Semiconductors are an indispensable part of the modern economy, used in everything from kitchen appliances and mobile phones to cars and weapons. China’s finance ministry as well as a host of state-owned banks and other businesses have invested 344 billion yuan ($47.48 billion) into the third phase of the National Integrated Circuit Industry Investment Fund. An earlier phase had planned to invest 12.9 billion yuan in semiconductor manufacturer Yangtze Memory Technologies Co., Bloomberg reported last year.

Source: https://www.thedailystar.net/business/news/us-businesses-want-continuation-tax-policy-bangladesh-salman-f-rahman-3620426

Reliance to buy Russian oil in roubles

India’s Reliance Industries, operator of the world’s biggest refining complex, has signed a one-year deal with Russia’s Rosneft to buy at least 3 million barrels of oil a month in roubles, four sources aware of the matter told Reuters. The shift to rouble payments follows Russian President Vladimir Putin’s push for Moscow and its trading partners to find alternatives to the Western financial system to facilitate trade despite U.S. and European sanctions. A term deal with Rosneft also helps privately run Reliance to secure oil at discounted rates at a time when the OPEC+ group of oil producers is expected to extend voluntary supply cuts beyond June. The OPEC+ group comprising the Organisation of the Petroleum Exporting Countries (OPEC) and allies including Russia is due to discuss the output cuts in an online meeting on June 2.

Source: https://today.thefinancialexpress.com.bd/trade-market/reliance-to-buy-russian-oil-in-roubles-1716914477