Remittance hits all-time high
Remittance hit an all-time high of $16.40 billion in the just concluded fiscal year, lending some breathing space to the Central Bank as it continues to sell US dollars to maintain the exchange rate. The inflows were 9.47 percent higher than in fiscal 2017-18, according to data from the Central Bank. A competitive commission offered by private Banks to attract remitters and a depreciating trend of the local currency taka against the US dollar are the main reasons behind the record receipts, said Kazi Sayedur Rahman, Executive Director of the Bangladesh Bank. The interbank exchange rate was Tk 84.50 for a dollar yesterday, up nearly 1 percent from a year earlier. Strengthening the Central Bank’s monitoring on the foreign exchange market to tackle ‘hundi’, an illegal way to transfer money between nations, also helped, Mr. Rahman said. Remittance crossed the milestone of $15 billion in fiscal 2014-15, but after that the figures hovered between $12 billion and $14 billion until last fiscal year.
BIMSTEC free trade deal likely this year
A free trade agreement (FTA) among the BIMSTEC countries may be signed this year, a top official of the regional grouping said. The BIMSTEC was launched in 1997 with the objective of forging greater trade connectivity between the South Asian and Southeast Asian nations. The next trade negotiation committee (TNC) meeting will be held in Bhutan next month. The regional grouping expects to ink the trade in goods agreement under the BIMSTEC FTA framework after that meeting, according to the Secretary General of the BIMSTEC M Shahidul Islam. He also said there is a consensus on most issues of the trade pact.
10pc Tax on all savings tools
The higher tax on profits from national savings instruments from this fiscal year will be applied on both new and old certificates, in a blow to the fixed income population. In the budget for fiscal 2019-20, the government imposed a 5 percent tax at source on the profit on savings certificate along with the previous five percent. So, the profit earners from saving instruments will now have to count 10 percent tax in total. Other than savers, the members of parliament had also requested the government to withdraw the 5 percent tax on profits from savings instruments. But the government resisted as it looks to reduce its heavy dependency on savings instruments to fund its budget as well as channel deposits towards Banks, which are going through an extended liquidity crisis. At the beginning of fiscal 2018-19, the government had targeted to borrow Tk 26,000 crore from savings instruments but it ended up revising the target up to Tk 45,000 crore.
NBR lifts VAT, SD on diaper, sanitary pad raw materials
The National Board of Revenue (NBR) has exempted Value Added Tax (VAT) and Supplementary Duty (SD) on import of raw materials for producing sanitary napkin and diaper in a bid to make their prices affordable. The exemption came into force from Monday (July 01), and will remain valid until June 30, 2021. The NBR VAT Wing waived the taxes on import of some seven key raw materials that are required for producing sanitary napkin and diaper. The items are: re-seal/self-adhesive tape, laminated sheet, film and foil, other sheets, film and foil (printed), air laid paper, textile back sheet (ADL), elastic back ear/elastic waist band, and knit loop tape. However, VAT at a rate of 15 per cent will remain the same like the previous years on sale and import of finished products.
ACME starts production of steroid, hormone from IPO project
The ACME Laboratories Limited has declared the commencement of commercial production of its state of the art steroid, hormone facility at Dhamrai upazila of Dhaka district. The Company noted that the aforesaid steroid and hormone facility is one of the three projects against which fund raised through Initial Public Offering (IPO), said an official. Recently, the Company also started commercial production of its state of the art Penicillin facility at Dhamrai after successful completion of trial production.The Acme Laboratories, the country’s oldest pharmaceutical company, raised Tk 4.09 billion from the public by using the book building method in early 2016. The drug-maker floated 50 million ordinary shares of Tk 10 each with a premium of Tk 67 through an initial public offering for the general and affected investors, and non-resident Bangladeshis.
Ashuganj Power to float IPO worth Tk 1.0 billion
Ashuganj Power Station Company will raise a capital worth Tk 1.0 billion to conduct different development works including the land development. The Company will raise the capital by issuing bond through initial public offering (IPO). The Bangladesh Securities and Exchange Commission (BSEC) approved the Company’s proposal of issuing bond at a meeting held at BSEC office. The characteristics of the bond will be non-convertible, fully redeemable and coupon bearing with a face value of Tk 5000 per unit. The tenure of the bond will be seven years.
Stocks fall following gas price hike
Stocks plummeted sharply yesterday, especially those of cement, ceramics, power and textile companies, as news spread of a gas price hike. The DSEX, the bourse’s prime index, dropped 0.67 percent, or 36.69 points, before closing the day at 5,384.92. According to market insiders, since these sectors were largely dependent on gas, the price hike was likely to have an impact on profits for which the stocks were impacted negatively. The energy regulatory authority on Sunday hiked tariff on the use of gas by different sectors. The increase was 34.98 percent for commercial use (commercial buildings, offices and restaurants).
BRAC Bank, new venture of Meghna Group ink deal
BRAC Bank Limited and Mohammad & Sons, a new venture of Meghna Group, have entered into a partnership agreement. Under the agreement, Mohammad and Sons will provide up to 10% discount on all their luxury watch brands to BRAC Bank Premium Banking Clients, TARA Premium Banking Clients, Signature Credit Cardholders and BRAC Bank Employees.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|Nikkei 225|| 211,618.57||↓153.70||↓0.62%|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 56.48||↑0.23||↑0.41%|
|Crude Oil (Brent)||$ 62.60||↑0.20||↑0.32%|
|Gold Spot|| $1,426.53|| ↑7.88|| ↑0.56%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.0874|
|GBP 1||BDT 104.8430|
|EUR 1||BDT 93.8187|
|INR 1||BDT 1.2047|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<