Bangladesh Bank intensifies US dollar purchase from banks
The central bank has intensified further the buying of US dollar from banks to keep the inter-bank foreign exchange market stable ahead of the Eid-ul-Fitr festival, officials said. Under the latest move, the Bangladesh Bank (BB) bought USD 50.0 million from four commercial banks Monday directly to protect the interests of exporters and migrant workers by keeping the exchange rate of local currency against the greenback stable. The US dollar was quoted at BDT 78.40 in the inter-bank forex market, marking no change in the price level, market operators said. On Thursday last, the central bank also purchased USD 60.0 million from four banks on the same ground.
Inflation drops for 2nd month in a row
The point-to-point inflation declined further in May, as food prices fell at a significant rate, officials said on Monday. Inflation fell by 0.16 percentage points to 5.45% in May from that of 5.61% in April. Inflation was calculated at 6.19% in May 2015, Bangladesh Bureau of Statistics (BBS) data showed. The inflation rate is well below than the central bank’s forecast of 6.07% and the government’s target of 6.2% for the current financial year (FY), 2015-16, which ends on June 30 next. Planning Minister unveiled the inflation data at the Planning Commission on Monday, expressing his satisfaction over the Consumer Price Index (CPI) trend over the 11 months of this fiscal. According to BBS data, the food inflation on the point-to-point basis dropped significantly to 3.81% in this May, compared to the corresponding month of 2015. In April 2016, the food inflation was recorded at 3.84%.
Government agencies spend only 62.0% of revised Annual Development Program in 11 months
The government agencies spent only 62.0% of its revised Annual Development Program (RADP), the lowest in last six years, in 11 months of the current financial year (FY) 2015-16, officials said Monday. Officials said the agencies would have to spend the remaining 38.0% of the total BDT 938.95 billion outlay during this last month (June) of the current FY to implement its ongoing 1,550 development projects. According to the Implementation Monitoring and Evaluation Division (IMED) of the Planning Commission (PC) data, the government agencies spent 67.0% of its RADP in the same period (July-May) last FY2015. Planning Minister AHM Mustafa Kamal at a briefing in the PC Monday said the government spent BDT 580.8 billion or 62.0% out of total BDT 939.0 billion RADP outlay during the first 11 months in the current fiscal. In the last FY’15, the government agencies implemented 91.0% of BDT 778.4 billion RADP in the 12-month period. According to the IMED data, the ADP implementation rate in July-May period was the highest in FY2012 with 70.0% project execution performance which later dropped to 67.0% in FY2013 and 66.0% in the subsequent FY’14.
Government looks to double profit from Bangladesh Petroleum Corporation next fiscal
The government wants to double the profit to BDT 50.0 billion from the once sickly state-owned Bangladesh Petroleum Corporation (BPC) in the next fiscal year (FY). The government eyes the higher amount from the BPC on the back of its adequate profits made following the fall in prices of oils in the international market. However, the national exchequer already got BDT 18.2 billion against the target of BDT 25.0 billion in the revised budget of the outgoing fiscal year. The government has a target to collect an aggregate amount of BDT 323.5 billion in NTR in the next fiscal year. The BPC is likely to make a profit of BDT 121.9 billion by the end of the outgoing fiscal year. After five consecutive years of losses, the BPC made a profit of BDT 41.3 billion in the FY 2014-15, a turnaround in fortunes for the state-run agency, which earlier made a profit of BDT 3.2 billion in 2008-09. The fuel price has been on a slide since June 2014 in the international market but Bangladesh did not adjust it domestically resulting in a big profit made by the state-owned enterprise.
Mobile number portability auction likely in September
Bangladesh Telecommunication Regulatory Commission (BTRC) is likely to hold the much-awaited auction for mobile number portability (MNP) in September. BTRC Chairman Dr Shahjahan Mahmood is scheduled to announce a tentative auction date today at a press conference to be held at its office in the city. As all the necessary approvals from authorities concerned have already been taken for the MNP, BTRC boss will formally disclose the MNP auction roadmap at the press conference. Last month, the Prime Minister’s Office had given approval to the mobile number portability (MNP) service that allows subscribers to switch between operators without changing their phone number. After getting approval from PMO, the regulatory body has begun all the necessary steps in this regard, said the official. Bangladesh Telecommunication Regulatory Commission (BTRC) would call the international tender to appoint a third party MNP operator to provide the service. Once the MNP is introduced, customers can switch to one mobile phone operator to another operator keeping their number unchanged within the country’s territory and they can again avail the facility after 40 days with a subscription fee of BDT 30.
Bangladesh Telecommunication Regulatory Commission to ask GP to explain ‘illegal’ internet business
The telecom regulator has decided to serve a show-cause notice to leading mobile phone operator Grameenphone asking why the operator would not be fined for providing internet service under GO Broadband brand name violating the telecom rules. The Bangladesh Telecommunication Regulatory Commission also decided to issue warning letters to AND Telecom Ltd and AGNI Systems Ltd who are the partners of GP in the Go Broadband. BTRC officials said that under Go Broadband GP had provided wired internet connection to the branches of state-owned Sonali Bank violating the rules. ‘Mobile operators are only allowed to provide wireless internet connection. But GO Broadband provided fibre optics connections across the country violating the rules,’ another BTRC official said. He said under Go Broadband more than 500 branches of Sonali Bank were connected unlawfully.
Brexit may hit Bangladesh export, say economists, exporters
Economists and exporters are in fear that a possible exit of the United Kingdom from the European Union could put a negative impact on the Bangladeshi exports to the UK, which is the third largest export destination for Bangladesh products. With the British people set to vote on June 23 in a referendum to decide whether Britain should leave or remain in the European Union, the latest opinion polls are suggesting a possible exit of UK from the EU. Economists said that if the UK exits (commonly known as Brexit) the EU, Bangladesh would have to go for bilateral negotiation to avail trade facilities. They said that Bangladesh enjoys duty-free benefits for all products and flexible rules of origins for readymade garments in the EU. Due to Brexit, Bangladesh would have to need bilateral agreements to avail the benefits in the UK.
National Board of Revenue’s revenue receipts rise 14.0% in April
Revenue collections by the National Board of Revenue rose 14.0% year-on-year to BDT 139.1 billion April, thanks to increased receipts from income tax and external trade-related activities. Income tax receipts surged 42.0% year-on-year to BDT 53.5 billion in April, according to the provisional data released by the NBR yesterday. Between July and April, BDT 471.1 billion was spent under ADP, up from BDT 433.3 billion in the same period a year ago, according to data from the Implementation Monitoring and Evaluation Division. The NBR official expects the collection to get speed in the last two months of 2015-16 that ends on June 30. However, VAT receipts from domestic trade declined 3.0% year-on-year to BDT 47.1 billion in April.Revenue collection from imports rose 8.0% to BDT 37.4 billion in April from the same month a year ago due to increased imports, according to NBR. Overall, the NBR’s revenue collection increased 16.0% year-on-year to BDT 1.2 trillion in July-April period of the current fiscal year. The 10-month collection shows that the taxmen will have to log in an additional BDT 306.6 billion in the last two months of the current fiscal year to reach the revised target of BDT 1.5 trillion. Officials expect that they would be able to hit the revised tax collection target by the end of the fiscal year.
World Stock and Commodities
|Index Name||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)*||$48.52||(0.36)||(0.74%)|
|Crude Oil (Brent)*||$50.35||(0.19)||(0.38%)|
|Dow Jones Industrial Average||17,732.48||(132.86)||(0.74%)|
|USD 1||BDT 78.25*|
|GBP 1||BDT 111.26*|
|EUR 1||BDT 88.34*|
|INR 1||BDT 1.17*|
*Currencies and Commodities are taken from Bloomberg.