Liquidity shortage pushes up Private Banks’ Deposit Rates
The ongoing liquidity crunch has forced many Private Commercial Banks to raise their deposit rates, particularly that of term deposits. The hike has made the government move to lower the lending rates to single digit almost untenable. The deposit rates started creeping up from September last year and the same have gathered pace in recent months. Some Private Commercial Banks (PCBs) are now offering a maximum interest 11.50 per cent, which is higher than the yield rate of the national savings tools. Most PCBs are now charging interest on lending for medium- and large-scale industries at rates ranging between 11.50 per cent and 15.50 per cent instead of 9.0 per cent, the rate their sponsors had promised earlier.
PC okays new Metro-Rail Projects
The Project Evaluation Committee (PEC) of the Planning Commission (PC) has approved two new metro-rail projects at a combined cost of Tk 931.62 billion, officials said. Presided over by the PC Member Shamima Nargis, the PEC has given green signal to the MRT line-1 and MRT line-2 projects recommending some changes. The Dhaka Mass Transit Company Limited (DMTCL) will build the proposed MRT line-1 from Airport to Kamlapur and the MRT line-5 from Hemayetpur to Vatara. “We’ve endorsed the two projects at a meeting last week suggesting changes in some components of the Development Project Proposals (DPPs),” a committee member said. “When the implementing agency will recast the DPP and send it to the PC, we will place it before the ECNEC (Executive Committee of the National Economic Council) for the final approval,” he added.
BB to help Insurance Companies implement regulatory decisions
The Central Bank assured on Thursday non-life insurance Companies of providing all sorts of assistance in regard to a recent circular issued by Insurance Development and Regulatory Authority (IDRA). The assurance came at a tripartite meeting held at Bangladesh Bank where representatives from IDRA and Bangladesh Insurance Association (BIA) were present. BIA Chairman Sheikh Kabir Hossain told that the governor of Bangladesh Bank assured non-life insurance Companies that the Central Bank will help the industry implement recent regulatory decisions. IDRA issued a notification to non-life insurance companies last week, asking them to make all kinds of payment or expenditure through the Banking channel. The insurance regulator also asked the non-life insurance firms to stipulate three Bank accounts they maintain to procure business and disburse commission as part of monitoring the implementation of the order.
Special Company to be formed for safety monitoring
Bangladesh Garment Manufacturers and Exporters Association has started its work to form a Company named RMG Sustainability Council to carryout safety inspection and remediation in the readymade garment sector following the departure of European Union buyers and brands led initiative Accord on Fire and Building Safety in Bangladesh. The trade body has prepared a concept note on the initiative saying that to ensure self-monitoring in the area of workplace safety and to deal with the industrial relations, workers efficiency and welfare, as well as the environmental sustainability issues proactively, the BGMEA has taken the initiative to establish a private sector led multi-stakeholder sustainability platform named RSC.
BB raises maximum limit of US dollar for travellers
The Central Bank has increased the maximum limit of cash US dollar for travellers’ to $12,000 from the existing level of $5,000 and $7,000 for a calendar year. The revised limit of foreign exchange for private travel abroad will come into effect from January 2020, according to a notification, issued by the Bangladesh Bank (BB) on Thursday. Currently, the Banks are allowed to release foreign exchange to an adult Bangladeshi national residing in Bangladesh during a calendar year upto $5,000 or equivalent for travel to South Asian Association for Regional Cooperation (SAARC) member countries and Myanmar, and $7,000 or equivalent for travel to other counties.
Wheat Import falls for first time in seven years
Bangladesh’s wheat imports in fiscal 2018-19 declined for the first time in seven years for the higher carry-over stock in the hands of private traders and low prices of the grain’s substitute, rice. Private importers typically account for 91 percent of the total wheat imports and last fiscal year their imports fell 4 percent year-on-year to 51.55 lakh tonnes. Imports by government’s food office also fell during the period, according to data from the food Ministry. The decline seems to be an effect of the lower prices of rice brought about by higher domestic production, said Abdus Shukur, head of supply chain of Bashundhara Food and Beverage Industries Limited (BFBIL), which roughly imports 10 lakh tonnes annually.
BEZA allocates land for 53 Industrial Units at BSMSN
The Bangladesh Economic Zones Authority (BEZA) has allocated a total of 6,077 acres of land among the 53 Business houses in the Bangabandhu Sheikh Mujib Shilpa Nagar (BSMSN) in Chattogram for setting up their factories. “At BSMSN, we have already allocated a total of 6,077 acres of land among the 53 industrial units, including Bangladesh Export Processing Zone Authority (BEPZA) Economic Zone, Bangladesh Garment Manufacturers & Exporters Association (BGMEA) Garments Village and Public-Private Partnership (PPP) Zone,” BEZA Executive Chairman Paban Chowhdury said. He informed that BEZA has already got a total of US$12.373 billion investment proposals from 53 industrial units.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|Nikkei 225||21,658.15|| ↓98.40|| ↓0.45%|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)|| $ 56.20||↑0.18||↑0.32%|
|Crude Oil (Brent)|| $ 63.46||↑0.07||↑0.11%|
|Gold Spot|| $1,418.90||↑4.32||↑0.31%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 82.8359|
|GBP 1||BDT 102.5240|
|EUR 1||BDT 92.1384|
|INR 1||BDT 1.2019|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<