BB to give Banks Euro Loans from Reserves
Bangladesh Bank is set to give loans to local Banks’ offshore Banking units [OBU] to offset the negative returns that it now gets for its liquid euro assets — a move that can be viewed as making the best out of a bad situation. Interest rates went negative in the Eurozone in June 2014 and the European Central Bank is widely expected to lower the negative interest rates even further today. At present, the Euro InterBank Offered Rate ranges from -0.358 percent to -0.452 percent. As of June, €412 million has been borrowed by local Banks’ OBUs from the Eurozone, according to data from the Bangladesh Bank. Subsequently, directors of the BB have decided to lend to the local Banks’ OBUs from the portion of its reserves it would invest in Euribor-linked products. Banks are borrowing at 5-6 percent from the Eurozone whereas the market rate is negative. Official reserve assets normally consist of liquid or easily marketable foreign currency assets that are under the effective control of, and readily available to, the monetary authority. This will not have been a concern were there excess foreign exchange reserves. As of September 4, foreign exchange reserves stood at $32.80 billion, enough to cover about five-and-a-half months’ import bill, according to data from the central Bank. Given that the BB intervenes in the foreign exchange market to keep the exchange rate relatively stable against the US dollar, assessment by the International Monetary Fund suggests an adequacy ranging from 3 to 8.8 months of imports given the country-specific characteristics of Bangladesh.
PM opens Community Bank Community
Bank Bangladesh yesterday began its journey with a view to reaching out the growth centres across the country. Prime Minister Sheikh Hasina opened the Bank, owned by Bangladesh Police Welfare Trust, through a video conference from her official residence Gono Bhaban. The Bank commenced the business operation of its Branch in Gulshan. Five more Branches will be set up within a month and a half. Along with Gono Bhaban, the inaugural session of the new lender took place at the Rajarbagh Police Line auditorium and the Gulshan Branch in tandem. The Bank will focus on setting up a good a number of digital Banking booths in rural areas in order to provide Banking services to clients. Since the inception, the Bank has been following the central Bank’s rules and regulations in order ensure corporate governance, according to a press release issued by the Bank. It has appointed independent directors as well. The Bank got its approval from the central Bank in November last year to roll out the operations with a paid-up capital of Tk 400 crore. With Community Bank Bangladesh Ltd, the number of the country’s total scheduled Banks reaches 59.
Govt takes initiatives to increase exports to CIS countries
Commerce Minister Tipu Munshi has said the government has taken initiatives for increasing the export to the countries under the Commonwealth of Independent States [CIS], Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Armenia, Moldova, Russia and Tajikistan. The government has taken special initiatives to attract the foreign investment in the country’s Special Economic Zones [SEZs], reports BSS. The government is establishing 100 SEZs across the country. Bangladesh has taken special initiatives to attract foreign investment in the SEZs. Bangladesh is the second largest readymade garment [RMG] exporter in the world and the labour of the RMG industry are enjoying safety and security as the government has taken necessary initiatives in this regard. Proper steps will be taken to accelerate the export of various Bangladeshi products in Uzbekistan.
BEZA, CUET meet on Naf cable car
Representatives of Bangladesh Economic Zones Authority [BEZA] and Chittagong University of Engineering and Technology [CUET] participated in meeting. Director of BRTC Professor Dr Md Hajrat Ali chaired the meeting, held at the conference hall of the administration building of CUET in the morning. Vice Chancellor of CUET Professor Dr Mohammed Rafiqul Alam, BEZA deputy secretaries Md A Alim Khan, Md Mahabubur Rahman and Md Nasir Uddin Mahamud Chowdhury, CUET Professors Prof Dr Mahamud Omar Imam and Prof Dr Kaji Delwar Hossain were also present and addressed the meeting. The meeting also discussed the technical support provided by the CUET for conducting survey on the cable car project.
National Tubes tops Turnover, Gainer Chart
Ten most-traded companies captured nearly 32 per cent transactions on the prime bourse Wednesday. National Tubes topped the chart for the third straight session on the day. The state-run National Tubes also dominated the day’s gainer chart, soaring 9.94 per cent over the previous session despite market plunged. Market analysts said investors continued to show their appetite for the National Tubes shares ahead of dividend declaration.
BPGMEA seeks ban on scrap plastic imports
The country’s plastic goods manufacturers have demanded of the government to impose restrictions on import of waste or scrap plastic items which, according to them, put adverse impacts on the domestic industry and the environment. Bangladesh Plastic Goods Manufacturers and Exporters Association [BPGMEA], a group of over 2,000 plastic goods manufacturers, has recently written a letter to the Bangladesh Investment Development Authority [BIDA], seeking its intervention in the matter immediately. The BIDA later forwarded the letter to the commerce ministry to take necessary measures in this regard. Importers are damaging the image of the country as the factories usually don’t produce any quality goods with such types of used plastics. The plastic sector not only helps the country’s ready-made garment [RMG] sector but also helps direct shipment of different types of plastic goods and toys in the international market. The sector, which generates more than 1.2 million jobs, contributes over Tk 20 billion in taxes to the national exchequer. The local plastic market is growing fast. Its size, in terms of sales, is approximately Tk 400 billion a year. There are around 5,000 small, medium and large plastic goods manufacturing units. The figure was around 3,500 a couple of years back. Exports of plastic products increased significantly in the fiscal year 2018-19. According to the Export Promotion Bureau [EPB], the plastic and melamine sector achieved a growth rate of 21.65 per cent with net export earnings of US$ 119.80 million last FY. Exports fetched US$ 98.48 million in the FY 2017-18. Exports of four types of products-plastic toys, PP-woven polypropylene bags, plastic hangers and fax fibre bags-are increasing every year.
Govt to invest in Nepal, Bhutan to import Electricity: PM
Prime Minister Sheikh Hasina on Wednesday said Bangladesh is now in talks with its neighbouring countries to import electricity to meet its growing demand, reports UNB. Discussions are on with India, Myanmar, Bhutan and Nepal to import hydropower to meet our demands, we’ve taken that initiative. The Prime Minister said this while inaugurating four power plants, eight 33/11 KV GIS sub-stations and hundred percent electrification at 10 upazilas in seven districts across the country through a videoconference from her official residence Ganobhaban. She said Bangladesh has already started importing 600 MW electricity from India. “We’re thinking of investing in Bhutan, negotiations are on for that, we’re also planning to invest in Nepal.” The Prime Minister, also the Power, Energy and Mineral Resources Minister, said the government want to illuminate the whole country with electricity. “No village will remain in the dark.” The inaugurated power stations are Baghabari 200MW power station, Jamalpur 115MW power station, Bogra 113MW power plant and Kaptai 7.4MW solar power plant. Power, Energy and Mineral Resources Affairs Adviser Dr Tawfiq-e-Elahi Chowdhury, State Minister for Power, Energy and Mineral Resources Nasrul Hamid and Asian Development Bank [ADB] Country Director Manmohan Parkash were, among others, present at the programme.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
| ↑227.61 ||↑0.85%|
|FTSE100||7,338.03|| ↑70.08 || ↑0.96%|
|Nikkei 225|| 21,798.57|| ↑200.81 ||↑0.93%|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 56.20 || ↑ 0.45 ||↑0.81%|
|Crude Oil (Brent)|| $ 61.20||↑0.39||↑ 0.64%|
|Gold Spot||$ 1,493.66 ||↓ 3.81|| ↓ 0.25%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 82.9157|
|GBP 1||BDT 102.328|
|EUR 1||BDT 91.3818|
|INR 1||BDT 1.15617|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<