BB relaxes rules on forex forward buy-sale
The central bank has relaxed regulations on forward sale and purchase of foreign exchange (forex) to bring dynamism in hedging transactions. Following the relaxations, non-deliverable forward (NDF) contracts will be facilitated to minimise exchange rate risk in the market. Besides, customers are allowed to receive their exchange gains after closing forward deals. Earlier, exchange gains, if any, on cancellation were not passed on to customers. It’s a forward step that will help the clients, who have long-term hedging requirements. Such relaxations will help foreign contractors or service providers to get an additional tool for hedging long-term forex risk exposures. Under the flexibility, forward contracts may be renewed/rolled over/extended for new delivery period at the prevailing market rate, provided the authorized dealers (ADs) are satisfied with documentary evidences that the customers are unable to carry out the contracts due to changes in the actual requirements or other valid exigencies. Balances held in the accounts may be utilised by the ADs for realising dues from the customers for this purpose. It is permissible to book short-term NFD contracts with roll-over flexibility till maturity for ultimate settlement on deliverable basis against underlying transactions having long tenure. The forward contracts booked under the facility are normally deliverable at maturity.
FBCCI to help investors set up industries in Sylhet region
The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) will extend all necessary assistance to the investors in setting up industries in Sylhet region to spur industrialization. There are huge potentials for setting up industrial units in different sectors like tourism and Agar. The FBCCI president was speaking as the chief guest at a reception accorded to former presidents and vice-presidents of the Sylhet Chamber of Commerce and Industry (SCCI) at its conference hall in the city on Tuesday. According to reports by PricewaterhouseCoopers (PwC) and other international organisations, Bangladesh would be the 28th largest economy by 2024. Still, there are challenges in different sectors. Setting up potential industries in Sylhet region would surely contribute to the national economy.
Rebranding RMG abroad is needed, says EU envoy
A major rebranding of Bangladesh and its ready-made garment (RMG) sector are needed to enhance their images abroad. The country’s poor image, stemming from poor workplace safety and low payment to workers, has compelled the European companies to avoid the ‘Made in Bangladesh’ label. Last year, Bangladesh exported above $60-billion apparel products to the European Union. There is no country that has managed to better grab the advantage of ‘Everything but Arms’ initiative than Bangladesh. There have been steps to set up 100 special economic zones or 12 hi-tech parks. But attention should be given to what is already there. The leading global financial giant HSBC organised the seminar in collaboration with the United Nations Development Programme (UNDP). As the second-largest apparel exporter, Bangladesh should continue to drive the sustainable supply chain practices given the expected impact of climate change. Impact measurement can help identify supply chain gaps in policy, infrastructure or resources and creatively plug them to maximise social benefits and profits for everyone.
Oil price rises 1pc ahead of US sanctions on Iran
Oil prices rose more than 1 percent on Wednesday as markets braced for the imposition of US sanctions on Iran next week and as stock markets clawed back some of their recent losses. Benchmark Brent crude oil was up 80 cents at $76.71 a barrel by 0840 GMT. The contract fell 1.8 percent on Tuesday, at one point touching its lowest since Aug. 24 at $75.09. US light crude was up 60 cents at $66.78. It hit a two-month low of $65.33 a barrel on Tuesday. New US sanctions on Iran begin on Nov. 4 and Washington has made it clear to Tehran’s customers that it expects them to stop buying any Iranian crude oil from that date. Imports of Iranian crude by major buyers in Asia hit a 32-month low in September, as China, South Korea and Japan sharply cut their purchases ahead of the sanctions on Tehran, government and ship-tracking data showed. Despite the rally on Wednesday, both crude benchmarks are around $10 below four-year highs reached on Oct. 3 and on track for their worst monthly performance since July 2016. Everyone thought we were going to go into the $90s, but now we are heading for the $60s. Oil has been caught in the global financial market slump this month, with equities under pressure from the trade war between the world’s two largest economies, the United States and China. The United States has already imposed tariffs on $250 billion worth of Chinese goods, and China has responded with retaliatory duties on $110 billion worth of US goods.
Summit LNG gets tax waiver for 15 years
National Board of Revenue (NBR) has offered a set of tax benefits to Summit LNG Terminal Co (Pvt) Ltd, including tax waiver for 15 years on its income. The company will also enjoy tax exemption on interest amount of foreign loan, royalties, technical know-how fees, and technical assistance fees for the period. NBR also exempted Summit LNG from payment of tax on capital gain derived from share transfer within 15 years of its commercial operation. In a Statutory Regulatory Order (SRO), dated October 27, 2018, NBR extended the tax benefit for 15 years. Earlier, in a SRO on March 4, 2018, the tax authority offered the exemption for five years, starting from the date of commercial production from its liquefied natural gas (LNG) floating storage and regasification unit (FSRU). The tax benefit for the company is considered to be valid with retrospective effect from March 5, 2018, the relevant date of the project, and will continue up to 15 years from the date of commercial production. The FSRU will have LNG storage capacity of 138,000 cubic metres with regasificaiton capacity of 500 million cubic feet per day (mmcfd). The country’s first LNG terminal was set up by the US-based Excelerate Energy Bangladesh Ltd.
DSE starts distribution of cheques among shareholders
The country’s premier bourse has started distribution of cheques of the fund received from Chinese consortium to its shareholders. DSE started the job of cheque distribution on Tuesday. Some 90 shareholders have received cheques as of Wednesday. In early September last, the DSE received Tk 9.62 billion in exchange of its one-fourth stake sold to the Chinese consortium comprising Shenzhen Stock Exchange and Shanghai Stock Exchange. Late, following a DSE plea, the government reduced capital gain tax to 5.0 per cent from 15 per cent on the fund received from Chinese consortium setting the condition of investing the fund in the capital market. The revenue board has finalised a statutory regulatory order (SRO) on reduction of capital gain tax. The DSE shareholders will have to invest their funds in listed securities within six months. They will be allowed to conduct sell-buy and the principal amount will remain unchanged.
AB Bank to issue Tk 5.0b bond
The board of directors of AB Bank Ltd has decided to issue fully redeemable non-convertible subordinated bond for enhancement of Tier-II capital. The AB Bank subordinated bond-IV will be Tk 5.0 billion with seven years maturity, variable rated and fund will be raised through private placement. The interest will be payable semi-annually (7.0 per cent to 10.50 per cent or as approved by the regulators) subject to approval from the concerned regulatory authorities like Bangladesh Bank and Bangladesh Securities and Exchange Commission. The bank will issue the bond for raising fund for enhancement of Tier-II capital and to strengthen the regulatory capital base of the bank.
StanChart gets new country CFO
Standard Chartered Bangladesh has recently appointed its country chief financial officer (CFO). Md Abdul Kader Joaddar will be a member of the bank’s country management team in Bangladesh, the bank said in a statement yesterday. Prior to joining Standard Chartered, Joaddar was working as deputy managing director and CFO of Brac Bank. Joaddar is a chartered accountant, qualified in 2001 from KPMG Bangladesh, under the Institute of Chartered Accountants of Bangladesh.
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)||$ 64.95||↓0.36||↓0.55%|
|Crude Oil (Brent)||$ 75.47||↓0.44||↓0.58%|
|Gold Spot||$ 1,218.19||↑3.43||↑0.28%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 85.8573|
|GBP 1||BDT 107.7650|
|EUR 1||BDT 95.1361|
|INR 1||BDT 1.1355|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.