Balance of payments

Tuesday’s morning business round up of Bangladesh

Last updated: August 11, 2015

Dhaka, Bangladesh (BBN) - The BBN has prepared the morning business round up compiling reports, published by different newspapers and news portals in Bangladesh.

Current-account balance negative after two years
Higher trade deficit sent the country's current-account balance into a negative territory again in the just-concluded fiscal year (FY) after boasting surplus in the preceding two years. The current-account deficit stood at US$1.65 billion in the FY2014-15 in a slide from a surplus amount of $1.40 billion a year before. In FY13 the surplus was as high as $2.39 billion, according to the central bank's latest statistics, released Monday.

Bangladesh’s current-account deficit may cross $3.50bn in FY16
Bangladesh’s current account balance deficit is likely to cross US$3.50 billion by the end of this fiscal year (FY) 2015-16, according to the central bank latest projection. The current account balance deficit may reach at $3.551 billion in FY 16 from $1.65 billion in the just concluded FY 15. Talking to BBN, Biru Paksha Paul, chief economist at the Bangladesh Bank (BB), said such current-account deficit does not signify that the external sector is gradually running into a difficult stage. “It does not pose any immediate threat or weakness of the economy.”

FIRST INSTALLMENT TO CHINA-LED AIIB: Govt to allocate Tk 212 crore
The ministry of finance is set to make an allocation of nearly Tk 212 crore against capital expenditure, to own one fifth of the 0.67 per cent share for Bangladesh in China-led Asian Infrastructure Investment Bank. The allocation will be made from the head of ‘capital block allocation and misc capital expenditure’ of the current budget, a top finance official said. As the agreement of the Bank was signed at the end of June, no specific allocation in the budget to subscribe the share of the multi-lateral bank was made, he added.

New export policy looks to boost trade with neighbours
The export policy for 2015-18 has put thrust on trade with Nepal, Bhutan and the seven sister states of India under the sub-regional cooperation. The commerce ministry has already finalised the draft of the policy and it will soon be sent for the prime minister's approval. “We have emphasised the increase in trade with India, Nepal and Bhutan in our new policy,” said Hedayetullah Al Mamoon, senior secretary of the commerce ministry.

Bangladesh Bank buys $40m more from 3 banks
The central bank of Bangladesh purchased US$40 million more from three commercial banks on Monday to help keep the inter-bank foreign exchange (forex) market stable, officials said. “We’ve bought the US currency from the bank directly at market rate to protect the interests of exporters and migrant workers by keeping the exchange rate of the local currency against the US dollar stable,” a senior official of the Bangladesh Bank (BB) told BBN in Dhaka.

Bangladesh left out as US renews GSP facility
Leaving out Bangladesh despite Dhaka's arduous efforts for the trade concession, the United States has extended until 2017 its generalized system of preferences (GSP) facility for 122 countries that include all other SAARC members. According to the official website of the USTR (United States Trade Representative) the US President signed on July 29 the Trade Preferences Extension Act of 2015 that reauthorizes the GSP Programme until December 31, 2017.

Bangladesh’s stock down for third day
Bangladesh’s stocks extended their losing streak for the third running sessions on Monday with volatile trading as investors remained cautious amid profit taking mood. The market started with a mixed trend and landed into the red as the session progressed. DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down further by 28.72 points or 0.59 per cent to settle at 4,815.64. The two other indices also closed in the red. The DS30 index, comprising blue chips, dropped 12.26 points or 0.65 per cent to finish at 1,869.31.

Software exports go up 6.27%
Software exports in the last fiscal 2014-15 witnessed a 6.27% rise to over US$132, compared to the previous fiscal, according to Export Promotion Bureau (EPB). During the FY2014-15, Bangladesh has fetched over $132m, which was 6.27% higher compared to more than $124 of previous fiscal. The export figure is 1.95% higher than that of the target of $130m for the FY2014-15. The software exports include computer data processing and hosting services, computer consultancy service, export of customised and non-customised computer software.

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