Dhaka, Bangladesh (BBN) – The BBN (Bangladesh Business News) has prepared the morning business round up compiling reports, published by different newspapers and news portals in Bangladesh.
ADP spending rises 35pc
The government’s development spending rose 35 percent year-on-year to Tk 62,372 crore in the first eight months of 2017-18 thanks to increased use of foreign aid. Project aid utilisation increased 108 percent year-on-year to Tk 25,341 crore during the period, according to the Implementation Monitoring and Evaluation Division. In comparison, the use of the government’s own funds rose 14.36 percent to Tk 33,654 crore.
Economists fret as money supply to economy falls
Growth of “broad money” continues to decelerate in the country that implies that the money supply to the economy is gradually contracting as the government tightens the purse strings, sources said. Economists view that such belt-tightening is necessitated mainly by some deterioration in the country’s balance of payments, on the one hand, and, on the other, under an impact of slow growth in net foreign asset of the banking system.
PMO consent sought for Citizen Bank
The Financial Institutions Division has sought the consent of the Prime Minister’s Office for banking licence for proposed Citizen Bank while the Bangladesh Bank is reportedly under pressure for three more banking licences before the next general elections although the sector is already overcrowded with 57 banks and mired by scams.
Bangladesh’s forex reserve slips below $32b again
Bangladesh has made an ever highest payment of US$1.56 billion to the Asian Clearing Union (ACU) against imports during the January-February period of this calendar year, officials said. After the payment, the country’s foreign exchange (forex) reserve came down to $31.93 billion on Thursday from $33.49 billion of the previous working day, according to the central bank’s latest statistics.
Bangladesh’s stocks end lower for third week
Bangladesh’s stocks extended the losses for the third straight week that ended on Thursday as investors were mostly on selling spree. Analysts said the persistent liquidity crisis pushed banks’ deposit interest rate high and lured many investors to put money in banks instead of investing in capital market which was taking a toll on the market turnover.
Quality governance, democracy crucial for LDC graduation
Continuation of the democratic process and political stability must be ensured before graduation from the least-developed country bracket, said a noted economist yesterday. The graduation from the LDC would be smooth if there is quality governance, no threat of violence, no threat of political instability, said Rehman Sobhan, chairman of the private think tank Centre for Policy Dialogue.
Savings certificate sales rise even after high interest rate in bank deposits
The depositors had turned away from the banks following the Farmers Bank Limited incident but now they are leaning towards savings certificate. A total of around Tk8,060 crore was invested on savings certificate in January, 2018, said Bangladesh Bank’s updated report.
Bangladesh Bank sells $27m to four banks
The central bank of Bangladesh has sold US$27 million more to four commercial banks to meet the growing demand for the greenback in the market. “We’ve sold the foreign currency to the banks on Thursday at market rate to settle import payment bills for different essential items,” a senior official of the Bangladesh Bank (BB) told the BBN in Dhaka.