Govt set to fix goods export target at $39b
The government is set to fix the country’s goods export earnings target at $39 billion for fiscal year 2018-19, officials said. It is 6.36 per cent higher than the $36.66 billion earnings target in the just-concluded FY 2017-18, they added. The government is going to fix the total export earnings target at $43.6 billion including $4.6 billion from services. Commerce ministry official said. Earlier, the state-owned Export Promotion Bureau (EPB) had proposed setting the country’s goods and service export target at $44.50 billion for FY 2018-19. The EPB proposal included a $40.0 billion goods export target and $4.50 billion from the services sector. The commerce ministry later asked the EPB to revise its proposed export earnings target based on export performance of FY 18 as goods earnings fell short of the target set for the period. The government is likely to set the export earnings target from readymade garments at $32.69 billion for FY 19, the ministry official said. The target is 6.78 per cent higher than earnings of $30.61 billion in FY’18. The export earnings target from knitwear and woven might be set at $16.15 billion and $16.54 billion, according to the EPB revised proposal.
Inflation dips slightly in July
The point-to-point inflation rate dropped by 0.03 percentage point in the first month of the current fiscal (FY19), according to the official data. As per Bangladesh Bureau of Statistic (BBS) data, unveiled Tuesday, inflation dropped to 5.51 per cent in July compared to that of 5.54 per cent in the previous month. According to the BBS data, the point-to-point inflation in July 2017 was recorded higher at 5.57 per cent. Emerging from the Executive Committee of the National Economic Council (ECNEC) meeting Tuesday in Dhaka, Planning Minister AHM Mustafa Kamal, unveiled the data of the consumer price index (CPI) of the country. The point-to-point inflation rate in the food items in the last month July was recorded higher at 6.18 per cent compared to 5.98 per cent in the previous month June. For the non-food items, the inflation rate dropped to 4.49 per cent in July from 4.48 per cent in June 2018. The BBS data also showed that inflation rate was higher in the urban areas than in rural areas. The inflation rate was 6.37 per cent in July in urban areas while it was 5.04 per cent in rural areas.
11 development projects get ECNEC nod
The government on Tuesday approved 11 development projects including the smart electricity bill prepaid meter installation project at a total cost of Tk 64.48 billion. The approval came at the fourth meeting of The Executive Committee of the National Economic Council (ECNEC) for fiscal 18-19 held at NEC. Dhaka Electric Supply Company Ltd (DESCO) will install a total of 200,000 prepaid meters across the city. The cost of the smart electricity bill prepaid meter installation project is set at Tk 1.90 billion. Mr. Kamal also said, out of the total cost Tk 64.16 billion will be provided from the government’s internal resources while the remaining will be provided by implementing agencies.
IIDFC, ICB Capital Management ink deal to issue bond
The IIDFC recently signed an agreement with ICB Capital Management Limited to issue Tk 2.0 billion (Tk 200 crore) coupon bearing non-convertible fully redeemable subordinated bond. Managing Director of IIDFC Md Golam Sarwar Bhuiyan and Chief Executive Officer of ICB Capital Management Limited Md. Sohel Rahman signed the agreement on behalf of their respective sides in the capital. Managing Director of Investment Corporation of Bangladesh (ICB) Kazi Sanaul Hoq attended the agreement-signing ceremony as the chief guest, says a statement. Executive Vice President, Chief Financial Officer (CFO) and Company Secretary of IIDFC Md. Shamim Ahamed and other high officials of both sides were also present, among others.
China July FX reserves rise to $3.118tr
BEIJING, Aug 7 (Reuters): China’s foreign exchange reserves unexpectedly rose in July even as worries over escalating trade tensions between the United States and China have caused market volatility. Reserves rose $5.82 billion in July to $3.118 trillion, compared with a rise of $1.51 billion in June, central bank data showed on Tuesday. Economists polled by Reuters had expected reserves to drop by $12.1 billion last month to $3.100 trillion. The yuan has fallen 6.3 per cent against the dollar since June 14, due to escalating trade tensions with the United States, and that has fanned fears of capital outflows. In 2017, when there were substantial outflows, China imposed tighter capital controls. The yuan weakened for a fourth straight month in July, the longest such streak since early 2015. The People’s Bank of China said it would take counter-cyclical measures to keep foreign exchange markets stable.
DSE to review performances of 13 listed companies
The Dhaka Stock Exchange (DSE) has decided to review the performances of 13 listed companies due to their failure in declaring dividends for last five years. The companies are: Meghna Pet Industries, ICB Islamic Bank, Dulamia Cotton Spinning Mills, Samata Leather Complex, Shyampur Sugar Mills, Zeal Bangla Sugar Mills, Imam Button Industries, Meghna Condensed Milk Industries, Kay & Que (Bangladesh), Savar Refractories, Beximco Synthetics Jute Spinners and Shinepukur Ceramics. The share price of Meghna Pet Industries plunged by 9.09 per cent to close at Tk 14 each, ICB Islamic Bank’s share price also fell 8.16 per cent to close at Tk 4.50 each, Dulamia Cotton’s share price declined 9.52 per cent to close at Tk 26.60 each. Samata Leather’s share price dropped by 8.37 per cent to close at Tk 49.20 each, Shympur Sugar Mills’ price lost 9.74 per cent to close at Tk 32.40 each. The share price of Zeal Bangla Sugar fell 9.58 per cent to close at Tk 39.60 each, Imam Button’s share price declined 9.97 per cent to close at Tk 26.20 each, Meghna Condensed Milk’s share price fell 7.82 per cent to close at Tk 16.50 each. The share price of Kay & Que fell 5.65 per cent to close at Tk 5.65 each, Savar Refractories’ price plunged 9.92 per cent to close at Tk 118.90 each. The share price of Beximco Synthetics also fell 7.22 per cent to close at Tk 7.70 each, Jute Spinners’ share price fell 9.41 per cent to close at Tk 104.90 each while the share price of Shinepukur Ceramic plunged 7.22 per cent to close at Tk 16.70 each.
Banks, NBFIs sign up to refinance power, infrastructure projects
Eight banks and four non-bank financial institutions yesterday signed a participation agreement with Bangladesh Bank to enjoy funds from an Investment Promotion and Financing Facility (IPFF) II project. The central bank, as the project’s administrator, has formed a $403.70 million fund to lend to financial institutions, authorising them to refinance customers in power and infrastructure projects at a lower cost. The signatories are Dhaka Bank, Prime Bank, Eastern Bank, Mutual Trust Bank, Dutch-Bangla Bank, United Commercial Bank, One Bank, City Bank, IDLC Finance, Infrastructure Development Company, Bangladesh Infrastructure Finance Fund, and Industrial and Infrastructure Development Finance Company. The government received loans amounting to $356.70 million from World Bank to implement the IPFF II project. The government provided $60 million as a counterpart fund to the project. The total project cost stands at $416.70 million, out of which the amount being lent is $403.70 million. The rest of the fund will be used as technical assistance.
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)||$69.28||↑0.11||↑0.16%|
|Crude Oil (Brent)||$74.64||↓0.01||↓0.01%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 84.2061|
|GBP 1||BDT 109.0553|
|EUR 1||BDT 97.8475|
|INR 1||BDT 1.2278|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.