Good morning. Here's what happened overnight and what you need to know today.
1.
Govt to Devise Plan to Retrieve Tk 873cr Climate Fund from Padma Bank: The interim government is going to formulate a specific roadmap to recover funds of the Bangladesh Climate Change Trust (BCCT), amounting to Tk 873.82 crore, that have been held up in Padma Bank since 2016. To formulate the roadmap, high-level representatives of different ministries and departments, including the Finance Division, Financial Institutions Division, and Ministry of Environment, Forest and Climate Change, are scheduled to hold a meeting with Padma Bank officials at the Bangladesh Bank today. (The Daily Star)
2.
Current-account Deficit Shrinks amid Signs of Economic Pickup: Current balance-of-payments (BoP) data show signs of Bangladesh's economy picking up with export receipts rising, imports returning to positive growth and a strong rebound in remittances. This has led to a narrower current-account deficit, while both the financial and capital accounts have gained posted surpluses. The latest BoP data, covering the first quarter (July-September 2024) of the current fiscal, reveal a current-account deficit of US$127 million, significantly lower than the $1.829-billion deficit in the same period last year, according to Bangladesh Bank's data released Wednesday. (The Financial Express)
3.
Tk9,000cr Returns to Banks in September: With the political instability following the fall of the Awami government somewhat easing in September, nearly Tk9,000 crore was deposited back into banks, signalling a partial return to stability and trust in the banking sector. By the end of September, cash outside the banking system had decreased from Tk2.92 lakh crore to Tk2.83 lakh crore, according to data from the Bangladesh Bank released yesterday. In August, the amount of cash in people's hands increased by Tk804 crore compared to the previous month of July. The figure stood at Tk2.58 lakh crore at the end of August last year. (The Business Standard)
4.
New Regulatory Rules to Augment Liquidity Feeding: Liquidity support to some crisis-stricken banks may be ramped up through a new mechanism, the central bank says and assures depositors of their money's security. The cash-hungry commercial lenders have already availed nearly Tk 56 billion from well-off banks under regulatory guarantees. Spokesperson for the Bangladesh Bank (BB) Husne Ara Shikha disclosed the present plans at a press conference held at the central bank headquarters in Dhaka on Wednesday. (The Financial Express)
5.
Trump’s New Era: Dhaka Needs to Be More Proactive: The victory of Donald Trump, who focuses more on America's domestic interests than on anything else, means the recent trend of progress in Dhaka-Washington ties might slow down, foreign policy analysts said. Trump has secured 295 votes in the Electoral College so far, beating Democratic candidate Kamala Harris. The analysts, however, said Dhaka does not need to worry; instead, it should work more proactively than before in getting what it needs from Washington. (The Daily Star)
6.
Govt Raises Asking Rates by 7-10pc: The government on Wednesday announced its decision to procure 1 million tonnes of rice and paddy during the upcoming Aman-harvest season. Under the plan, parboiled rice will be procured at Tk 47 a kg, white rice (atap) at Tk 46 a kg, and paddy at Tk 33 a kg. The procurement period will span from November 17 this year to March 15, 2025. The decision was finalised at a meeting of the Food Planning and Monitoring Committee (FPMC) held in the Cabinet conference room. The meeting was chaired by the committee's head and Finance Adviser Dr Salehuddin Ahmed. (The Financial Express)
----Saju Sarker
BBN/SSR/AD