BB resumes action after three years
The central bank purchased US$ 2.63 billion from the commercial banks directly in the first quarter (Q1) of the current fiscal year (FY), aiming to keep the inter-bank foreign exchange (forex) market stable. Official figures show the amount of purchasing the greenback was nearly three times higher than that of FY 2019-20 when the Bangladesh Bank (BB) bought $ 877 million.The central bank resumed purchasing the US currency on March 09 last after around three years to keep the exchange rate of the local currency against the greenback stable. The BB’s intervention came against the backdrop of appreciating mode of Bangladesh Taka (BDT) against the US currency mainly due to lower import payments recently. On the other hand, the central bank sold only $ 200 million to the banks during the July-September period of FY ’21 to meet their demand for the greenback. The US dollar was quoted at Tk 84.80 on the inter-bank forex market on Monday. The rate remained at the same level in the Q1 of FY ’21. The inflow of remittances grew by more than 48 per cent to $ 6.71 billion during the period under review from $4.52 billion in the same period of the previous FY.The central bank injected Tk 222.77 billion in the market through buying $2.63 billion from the banks in the first three months of FY’21. The weighted average rate (WAR) of call money came down to 2.47 per cent on Sunday from 2.63 per cent on the previous working day. It was 4.27 per cent on September 01.
Govt to reassess waiver of loans worth Tk 6.86b
The government will scrutinise further a BGMEA proposal for waiving the entire bank loan liabilities of as many as 131 readymade garments (RMG) units.In 2019, BGMEA president RubanaHuq requested the finance minister AHM Mustafa Kamal for considering waiving the principal loan amount, interest and other costs of 133 RMG units, said a senior official of the ministry. In response to the BGMEA application, the finance ministry then had asked for the central bank’s opinion on the issue. Receiving the finance ministry letter, Bangladesh Bank (BB) asked the banks to send the loan information about 131 out of the 133 factories. After the collection the loan data, the BB informed the finance ministry that the government would require over Tk 6.86 billion for repaying all existing liabilities to the banks concerned. Of the amount, the principal loan amount is over Tk 5.52 billion, according to the commerce ministry document.
EBL launches new product for women entrepreneurs
Women Banking Division of Eastern Bank Ltd. (EBL) has introduced a new banking product- EBL Ovilashi for the women entrepreneurs of the country. This is an interest bearing business current account featuring all-inclusive product suite with 360 banking services.The launching event was followed by a discussion on how to develop a business friendly environment for women entrepreneurship in Bangladesh.
Govt eyes $2.5b from WB
Bangladesh may seek more than $2.5 billion from World Bank in budgetary support, project financing and aid as it has to implement a major portion of the country’s gigantic stimulus package to revive the economy. Its main target would be to secure $500 million in budget support in the current fiscal year. Of the sum, $250 million would be sought in the form of development support credit and another $250 million from the development lender’s fund for the poorest countries to combat the impacts of the coronavirus pandemic.The Washington-based lender has indicated that it would provide $1.87 billion in the current fiscal year from its International Development Association (IDA), which lends to the poor countries.The WB approved $2.27 billion in the just-concluded fiscal year. Of the sum, $1.7 billion came after March, extending much-needed support to the country reeling from the pandemic.The government has undertaken a programme worth $550 million to procure and distribute coronavirus vaccines. It is currently in negotiation with the WB and Asian Infrastructure Investment Bank for a loan of $400 million for the programme. The rest of the amount would be contributed by the government. On September 29, World Bank President David Malpass said he was seeking board approval for a $12 billion coronavirus vaccine financing plan to help poor and developing countries secure sufficient stocks once the solution was available in the coming months.
Rupali Bank gets new DMD
Mohammad Jahangir has been appointed Deputy Managing Director in Rupali Bank Ltd. Before joining as Deputy Managing Director of Rupali Bank Limited, he served in Rupali Bank Ltd as General Manager in Dhaka south and Divisional office, Chattogram. Mohammad Jahangir joined Rupali Bank Limited as Officer in 1990.