Good morning. Here's what happened overnight and what you need to know today.
1.
Govt to Support Ailing Factories Hit Hard by Labour Unrest: The government has formed a special committee to aid the struggling ready-made garment (RMG) and non-RMG factories, particularly those affected by recent labour unrest. The 10-member inter-ministerial committee has been tasked with profiling factories which are at risk of closure by examining their financial status, debts, and unpaid wages to workers, according to a 27 October office order from the Ministry of Labour and Employment. (The Business Standard)
2.
Stocks Rise 2.94% amid Talks of Policy Support: The stock market yesterday saw its highest single day rise in the past three months after an announcement by the Bangladesh Securities and Exchange Commission (BSEC) that the stock regulator would seek policy support from the government. The DSEX, the key index of the country's premier bourse Dhaka Stock Exchange, went up by 147.51 points, or 2.94 percent from the previous day, to close at 5,164 yesterday. (The Daily Star)
3.
Generous Fund Feeding to Banks thru Special Bonds Crosses Tk 400b: Inflation-fuelling high-powered money makes a comeback as a special liquidity-feeding instrument called AR or assured repo is now in operation, sources said. In the third phase that started on October 29, 2024, Bangladesh Bank, the country's central bank, is disbursing Tk 55.62 billion to the special bondholders. With the amount, the cash supports to banks under special bonds cross Tk 400-billion mark. But money-market analysts think such fresh cash feeding might run counter to the central bank's contractionary monetary stance for controlling inflation as it would cause injection of high-powered money into the market that could deliver disservice to government's inflation-combat move. (The Financial Express)
4.
Cenbank Trims EDF to $2.51b amid Allegations of Smuggling: Bangladesh Bank has reduced the size of its Export Development Fund (EDF) to $2.51 billion following evidence that some businesses used the fund to smuggle money abroad, the central bank confirmed. In alignment with conditions attached to a $4.7 billion loan from the International Monetary Fund (IMF), the central bank conducted a special inspection that uncovered instances of illicit fund transfers by certain businesses. The discovery prompted Bangladesh Bank to scale down the EDF, taking into account the escalating risks of misuse. (The Business Standard)
5.
Onion Production Costs almost Double This Year: Onion production costs have practically doubled this year thanks to the higher price of Kondo onion bulbs, which are planted in October and harvested in mid-November, according to farmers in major producing districts of Bangladesh. Kondo onions are an early season variety of the vegetable that are grown from October to mid-November to ensure that local markets have a sufficient supply before the main crop is harvested later in March. (The Daily Star)
6.
Banks Need No Prior Approval for Internet Import Payments: BB: Banks will now be able to process payments for imported internet bandwidth and related services without prior approval from the Bangladesh Bank. The Foreign Exchange Policy Department (FEPD) of the central bank issued a circular today, detailing the new rules, saying "banks can now independently assess and process these payments." (The Business Standard)
----Saju Sarker
BBN/SSR/AD