Good morning. Here's what happened overnight and what you need to know today.
1.
Gross Forex Reserves Cross $25b: A steady rebound on the back of changed milieus helps Bangladesh see its gross foreign-exchange reserves climb over US$25 billion again amid tightfisted import payments and higher remittances, officials said. The forex reserves rose to $25.14 billion on October 15 from $24.97 billion on October 08 as per traditional calculation method of the Bangladesh Bank (BB). It was $24.86 billion on September 30. (The Financial Express)
2.
Cash Outside Banks Keeps Rising: The volume of cash outside the banking sector of Bangladesh has been increasing since the start of the year due to persistent inflation, the loss of consumer confidence in the sector due to the presence of ailing lenders, and the prevailing situation following the recent political changeover. During the July-August period of this year, cash outside banks rose by nearly 1 percent, or Tk 2,000 crore, to Tk 292,000 crore compared to the end of June, data from the Bangladesh Bank (BB) showed. (The Daily Star)
3.
Tk 550cr Liquidity Support from Sonali Bank: Guaranteed by the central bank, state-owned Sonali Bank is extending Tk550 crore in fresh loans to two struggling private banks — Union Bank and Exim Bank — both hit by loan scams and various irregularities. According to central bank data, Exim Bank is getting Tk400 crore, while Union Bank Tk150 crore. However, Union Bank requested for Tk350 crore support. Of this amount, Tk150 crore has been approved, with the possibility of additional support in the future, according to a senior official from the bank. (The Business Standard)
4.
Call-Money Mkt Moribund as Funds Switch into SDF: Even a moratorium on injection of high-powered money by the central bank fails to resuscitate the call-money market as the affluent banks' trust deficit prompts switch of their surplus credits into state-secured SDF or standing deposit facility despite lower gains. Because of the latest switch of the surplus funds of the well-off commercial banks, the volume of cash deposits in the SDF continues ballooning while the transactions on the interbank market keeps squeezing in recent days, causing serious concern for the banks that need short-term credits to maintain their day-to-day banking affairs, officials and bankers said. (The Financial Express)
5.
Govt Takes First Step to Join China-Led Trade Bloc: The commerce ministry on Monday sent a letter of consent to the foreign ministry, requesting Bangladesh's entry into the China-led Regional Comprehensive Economic Partnership (RCEP), the world's largest trade pact. It is the first formal step taken by Bangladesh to join the RCEP, which is a major trade agreement that includes trade in services, investment, economic and technical cooperation, and dispute settlement. (The Daily Star)
6.
Power Sector: Interim Govt on AL’s Track for Subsidy: The interim government is considering issuing additional special treasury bonds to help the Bangladesh Power Development Board (BPDB) settle its outstanding payments to independent power producers (IPPs). The move is intended to ease the financial burden on independent power producers and maintain stability in the country’s power sector, in line with policies pursued by the previous government. (The Business Post)
----Saju Sarker
BBN/SSR/AD