Inward remittances may cross $17 billion this fiscal: BB
The central bank expects the overall inward remittance to cross the $17 billion mark by the end of fiscal year (FY) 2018-19. In FY ’18, remittance flow jumped by more than 17 per cent or $2.21 billion following higher fuel oil prices in the global market. This may grow by more than 16 per cent to $17.43 billion from last FY’s $14.98 billion, says the latest Monetary Policy Statement (MPS) of the Bangladesh Bank (BB). The global average cost of sending $200 was 7.1 per cent in the first quarter of 2018, more than twice the Sustainable Development Goal (SDG) target of 3.0 per cent. Meanwhile, remittances to South Asia grew a moderate 5.8 per cent to $117 billion in 2017. In 2018, the volume is likely to grow modestly by 2.5 per cent to $120 billion, the WB added. The upward trend in manpower export in recent years will help achieve the target, hoped the BB executive. More than 2.32 million workers went abroad with jobs in 2015, 2016 and 2017 calendar years, according to the official figure. The remittances from Bangladeshis working abroad were estimated at more than $1.32 billion in July, down by $67.45million from the level of June. In June, the amount stood at $1.38 billion, according to the central bank statistics. It was $1.11 billion in July 18. On August 05, the inter-bank exchange rate was Tk 83.75 per dollar, up from Tk 80.66 a year earlier. Currently, 29 exchange houses are operating globally with 1,211 drawing arrangements to boost inflows, according to the BB official. All private commercial banks received $972.39 million as remittances in July. State-owned commercial banks received $320.51 million, foreign commercial banks (FCBs) $12.40 million and specialized banks $11.63 million.
Stocks inch down after volatile trading
DSEX, the prime index of Dhaka Stock Exchange (DSE), went down by 3.61 points or 0.06 per cent to settle at 5,353. The DSE Shariah Index also fell 2.87 points to close at 1,249. However, the DS30 index, comprising blue chips, advanced 2.26 points to finish at 1,889. Trading activities remained almost same over the last session as the total turnover stood at Tk 6.39 billion, which was 3.0 per cent lower than the previous day’s Tk 6.59 billion. Textile and fuel & power showed an increase of 1.13 per cent and 1.06 per cent respectively. Pharmaceuticals, food, banking and engineering also advanced 0.33 per cent, 0.26 per cent, 22 per cent and 0.07 per cent respectively. Of the 335 issues traded, 187 declined, 108 advanced and 40 issues remained unchanged on the DSE trading floor. The market capitalization of the DSE rose to Tk 3,842 billion on the day which was Tk 3,847 billion in the previous session. The port city bourse CSE also finished lower with its CSE All Share Price Index – CASPI – losing 52 points to settle at 16,439 and the Selective Categories Index – CSCX – falling 32 points to finish at 9,949. The losers beat gainers as 138 issues closed lower, 78 ended higher, with 26 issues remaining unchanged on the CSE. The port city bourse traded 9.74 million shares and mutual fund units worth more than Tk 356 million in turnover.
Import payments top $51.5b in FY18
Country’s import payments topped $51.5 billion with a 16.39-per cent growth in last fiscal year of 2017-2018 amid increased payments for food grains and petroleum imports. Crude oil was traded at round $70 a barrel in last couple of weeks, while its price was $50 a barrel a year ago. The BB data showed that the import of food grains (mainly rice and wheat) increased by 161.74 per cent to $3 billion in FY18 from $1.15 billion a year ago. Petroleum import posted the second highest growth, among the major items, as import of the item increased by 32.7 per cent to $3.35 billion in the immediate past fiscal year from $2.52 billion in the previous fiscal year. Settlement of LCs for the import of industrial raw materials grew by 12.36 per cent to $18.22 billion in FY18 from $16.22 billion in FY17. Import of capital machinery grew by 6.24 per cent to $5.15 billion in the fiscal year against $4.85 billion in the previous fiscal year. The country’s export earnings in the just concluded financial year stood $36.66 billion, growing by only 5.8 per cent from $34.65 billion in the previous fiscal year. The amount of export earnings in FY18 is $84 million lower than the government-set target of $37.5 billion for the financial year.
4 NY law firms show interest to deal BB heist reserve legal fight
Four New York-based law firms have shown interest to assist Bangladesh Bank in its planned legal fight for recovering the BB reserves stolen and laundered in the Philippines. The BB is preparing to file cases against New York Federal Reserve and Rizal Commercial Banking Corp by January next year to recover the rest $66 million of the country’s stolen reserve fund, said Eunusur, also the chief of the taskforce on recovering the stolen reserve fund. Manila returned only $15 million by an order of a regional Philippine court in November, 2016. Eunusur, who did not disclose the names of the interested law firms for technical reasons, said process at the regional Philippine court was on to recover another $24 million. Earlier, RCBC also warned of legal action, claiming that the cyber heist was an ‘inside job’ and that the Philippine bank was being used as a scapegoat to hide the culprits.
RCBC has had it and would consider a lawsuit against Bangladesh Central Bank officials for claiming that the bank had a hand in the $81 million cyber-heist, according to a statement by the Philippine bank.
China’s July exports to maintain solid growth
China’s exports are expected to have maintained solid growth in July despite new tariffs on billions of dollars of shipments to the United States, though the outlook has darkened as both sides raised the stakes in a trade conflict that has rattled financial markets. China proposed retaliatory tariffs on $60 billion worth of US goods ranging from liquefied natural gas (LNG) to some aircraft on Friday, following a proposal by the administration of US President Donald Trump for a higher 25 percent tariff on $200 billion worth of Chinese imports. Economists say that tariffs on $34 billion of China’s exports to the United States, which went into effect on July 6, so far are not having a significant impact on overall Chinese exports. July exports are predicted to have risen 10 percent year-on-year, according to median estimates from 37 economists, compared to 11.2 percent growth in June. While July’s forecast does not point to any sharp slowdown, economists do see headwinds mounting for China’s massive export sector.
City Bank launches online supply finance chain
City Bank yesterday launched a digital “Supply Chain Finance and Distributor Finance Facility” through which suppliers will get paid whenever invoices are approved while buyers will enjoy increased liquidity and improved working capital. The online platform will also enable SME businesses’ easy access to finance, particularly short-term working capital, along with other banking facilities. A statement of the bank said the process would help link buyers, suppliers and financing institutions to lower financing costs and improve business efficiency. Apex Footwear Ltd and EON Group have already been using the platform while an agreement has been signed with Pran-RFL Group.
RMG sector in trouble for transport shortage: BGMEA
Bangladesh Garment Manufacturers and Exporters Association on Monday said that the country’s readymade garment sector was facing a crisis in making shipment of finished product due to shortage of transport on roads and highways and global buyers were losing their confidence in the sector. This was the time for buyers to place orders but if the exporters failed to make shipment in time for lack of transport, orders would drop. Expressing solidarity with the logical movement of youth students demanding ‘safe road’, Siddiq said that the prime minister accepted all the demands of student and they would now want proper implementation of law for ensuring road safety.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$69.06||↑0.05||↑0.07%|
|Crude Oil (Brent)||$73.98||↑0.23||↑0.31%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 84.2061|
|GBP 1||BDT 108.9711|
|EUR 1||BDT 97.3086|
|INR 1||BDT 1.2225|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.