Sunday’s morning business round up of Bangladesh

Last updated: May 18, 2015

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

Do more to regain GSP facility, US tells Bangladesh

Bangladesh has made progress to address fire and building safety issues in RMG sector, but it will have to do more in worker rights issues to reinstate Generalised System of Preferences, said the US. US President Barack Obama suspended Bangladesh from Generalised System of Preferences (GSP) in June 2013 following Rana Plaza collapse and Tazreen fire incident that killed over 1,200 apparel workers. The suspension came based on Bangladesh’s failure to meet statutory eligibility requirements related to worker rights, said a USTR-led interagency review.

Retailers hike diesel price as supply falls

Consumers in many parts of the country are forced to pay more than the government-fixed price for diesel, as retailers have hiked its price taking advantage of supply disruptions due to the ongoing blockade.   End users, especially rice and vegetable growers, in at least 25 districts face diesel shortage, as the blockade continues to hamper supplies to retailers. Districts in Rajshahi and Sylhet divisions as well as remote and border areas have been the worst hit since the BNP-led alliance's blockade began nearly two weeks ago.

 

RMG exporters hit hard as shipment halves

The number of covered vans carrying readymade garment products to the Chittagong port for shipment halved in the last 13 days due to a countrywide nonstop blockade being enforced by the BNP-led alliance. A survey conducted by the Bangladesh Garment Manufacturers and Exporters Association showed that 3,480 covered vans transported RMG products to the Chittagong port for shipment under police protection in January 5-17, while 2,810 covered vans carried goods for the apparel sector from the port to Dhaka.

Turmoil hits rice millers hard

The ongoing blockade which started from January 6 last has affected the operation of nearly 80 per cent of rice mills during the peak Aman season. Meanwhile, the city traders said the prices of rice have already recorded some rise and the trend will continue because of their depleting stocks.

 

BDT appreciates by 0.14% against USD

The Bangladesh Taka (BDT) appreciated by 0.14 per cent against the US dollar last week that ended on Thursday due to lower import payment pressure following the ongoing political turmoil, bankers said. The US dollar was quoted at BDT 77.83-BDT 77.85 in the inter-bank foreign exchange (forex) market on the day against BDT 77.95 on January 11 last, according to the central bank statistics. “Political uncertainty has adversely impacted on import payments lowering import payment pressures which led to lower US$/BDT rate,” a senior treasury official of a commercial bank explained.

Stocks slip amid political troubles

Stocks continued to suffer for a second week as investors remained cautious of injecting fresh funds amid ongoing political volatility. DSEX, the benchmark general index of Dhaka Stock Exchange, declined 12.62 points or 0.25 percent, to close the last week at 4,956. Although macro indicators such as inflation, interest rate and private sector credit growth are in favour of the market, investors seem to be shaky because of instability on the political frontier, LankaBangla Securities said.

 

Governor urges foreign banks to help build bond market

Bangladesh Bank Governor Atiur Rahman has urged international banks to help Bangladesh raise longer-term external financing for corporate houses and develop the domestic bond market. Dr. Rahman spoke at a meeting on business and investment opportunities, organised by Habib Bank AG Zurich's Bangladesh representative office, at Sonargaon Hotel in Dhaka on Friday. There are ample opportunities for international banks to help boost international trade, raise external financing, develop domestic bond market and engage with the government in fund raising abroad, he said.

 

BBN/SSR/AD-18Jan15-9:20 am (BST)

 

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