EU-Vietnam FTA to hit BD foreign trade hard
According to the Analysts, Bangladesh is likely to face a severe blow to its foreign trade, as its competitor country Vietnam signed a free-trade agreement (FTA) with the European Union (EU) on Sunday. The EU signed the free-trade deal with Vietnam on June 30, paving the way for tariff reduction on 99 per cent of goods, traded between the bloc and the Southeast Asian country. After a long three-and-a-half years of negotiation, the agreement was signed in Hanoi between EU Trade Commissioner Cecilia Malmstrom and Vietnam’s Minister of Industry and Trade Tran Tuan Anh. The trade deal of the EU, the first of its kind with a developing country in Asia, will be effective after approval of the European Parliament.
Private credit growth falling trend
Private sector credit growth edged up in May after sliding since October last year but it is still well below the Central Bank’s target for the second half of fiscal 2018-19. In May, credit growth stood at 12.16 percent, up from 12.07 percent a month earlier. But the credit growth is still 4.34 percentage points less than the Central Bank’s target of 16.50 percent for the second half of the just concluded fiscal year. The increase is insignificant and there is no possibility to escalate the growth in the upcoming months given the ongoing liquidity crunch in the Banking sector, said Economists and Bankers. In the last two fiscal years, private sector credit growth hovered between 16 percent and 18 percent, only to dip at the turn of fiscal 2018-19. The credit growth will not get a boost if the deposit growth does not get a momentum, said Ahsan H Mansur, Executive Director of Policy Research Institute.
Businesses must update e-BINs by July 31: NBR
Businesses will have to update their information with the VAT online system database by July 31 to keep their online Business identification numbers (e-BINs) active. Officials of the National Board of Revenue said that Businesses, which had already obtained nine-digit e-BINs, commonly known as VAT registration number, must update their information in line with amended value-added tax rules to continue their Business operations and VAT-related activities. The move would also help the VAT authorities exclude fake BINs taken by unscrupulous Businesses by providing wrong information. VAT Online Project (VOP) will deactivate a BIN if the BIN-holder fails to update information by the deadline, Official added. According to the VOP, more than 1.71 lakh businesses have so far obtained e-BINs from the online system.
Growing SoE losses to put Govt Banks under pressure
The State-owned Enterprises that suffered Tk 4,155.53 crore losses in the just- concluded fiscal year due largely to mismanagement will continue their losing streak in the new fiscal year keeping the government Banks under pressure. The loss of the 49 SoEs has been projected to be Tk 5,350.23 crore in 2019-20 by the Finance Division in a budget document, for which experts fear that the liquidity crunch in the cash-strapped State-owned Banks might worsen in the new fiscal year beginning July 1. Centre for Policy Dialogue distinguished fellow Mustafizur Rahman pointed out that continued losses did not enable them to pay back their loans they took from the State-owned Banks. Losses of the SoEs forced the government to provide them with bailout in the form of fresh loans and subsidies, he added.
German logistics firm opens Bangladesh subsidiary
Schenker (Asia Pacific) Pte, a subsidiary of DB Schenker, the transport and logistics division of Deutsche Bahn Group, has expanded its presence in the Indian subcontinent with the launch of a new subsidiary in Bangladesh. The German Company has been delivering logistics services to its customers in Bangladesh since 2007 through an exclusive network partner. With effect from June 26 this year, Schenker Logistics (Bangladesh) is fully operational as a local entity under the global freight forwarder’s India cluster organisation. The new Bangladesh subsidiary is now part of the global DB Schenker network, with 2,000 locations in more than 130 countries. “As one of the priority markets for our Indian subcontinent, the move to establish our own entity in Bangladesh will greatly enhance DB Schenker’s service portfolio in the subcontinent,” said Jochen Thewes, Chief Executive Officer of DB Schenker.
CMC aims to make anti-venom locally
A research team, for the first time in Bangladesh, is studying native snake species aiming at mass-scale production of effective anti-venom for local patients. As part of the initiative, they are rearing and hatching poisonous snakes in a laboratory of the Venom Research Centre, being operated by the medicine department at Chitta-gong Medical College (CMC). The researchers would collect venoms from the snakes, analyse their properties, and develop techniques to produce the antidote. If the sample anti-venom meet the WHO standards, the government would go for mass production.
Monzur Mofiz joins ONE Bank as AMD
Md. Monzur Mofiz has joined ONE Bank Limited as its Additional Managing Director (AMD) with effect from July 01. Prior to his new assignment, Mr. Monzur was the Deputy Managing Director and Chief Business Officer of Dutch-Bangla Bank Ltd.
BAJUS raises gold price by Tk 175 per gram
Gold price in the local market has been increased by Tk 175 per gram, following a hike in international market. The new price of per gram 22-carat gold has been fixed at Tk 4,475 from previous rate, According to Bangladesh Jewellers’ Samity (BAJUS). The new prices of the expensive metal will be effective from today (Thursday), according to the statement, signed by the BAJUS’s general secretary Dilip Kumar Agarwala.
Local and Global Stock Indices *
|Index Name ||Close Value ||Value Change ||Percentage Change |
|DSEX ||5,372.21108 ||↓12.71455 ||↓0.24% |
|DJIA ||26,966.00 |
|↑179.32 ||↑0.67% |
|FTSE100 ||7,609.32 ||↑50.13 ||↑0.66% |
|Nikkei 225 || 21,696.94 ||↑58.78 ||↑0.27% |
World Commodities *
|Commodity ||Close Value ||Value Change ||Percentage Change |
|Crude Oil (WTI) ||$ 57.03 ||↓0.31 ||↓0.54% |
|Crude Oil (Brent) ||$ 63.43 ||↓0.39 ||↓0.61% |
|Gold Spot || $1,420.44 || ↑1.66 || ↑0.12% |
Major Currencies Exchange Rates Movement in Last Seven Days *
|Exchange Rates |
|USD 1 ||BDT 82.9306 |
|GBP 1 ||BDT 104.3110 |
|EUR 1 ||BDT 93.5875 |
|INR 1 ||BDT 1.2043 |
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<