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.
Govt bank borrowing exceeds Tk 85,000cr in FY20
The government’s borrowing from the country ‘s banking system through treasure bills and bonds for the first time exceeded Tk 85,000 crore in the just concluded fiscal year 2019-2020 due mainly to gloomy revenue collection and plunge in sales of national savings certificates. According to Bangladesh Bank data, the government’s borrowing against treasury bills and bonds increased to Tk 78,731 crore in the fiscal year.
BB eases FC rules to lure more FDI
The Bangladesh Bank (BB) has relaxed relevant rules to attract more foreign direct investment (FDI). Following the relaxations, foreign investors will be eligible to receive their dividend income in foreign currency (FC) accounts maintained in Bangladesh, according to a notification, issued by the BB on Tuesday
Experts: Using forex reserves to fund development is not feasible
Top economists are of the view that borrowing from foreign currency reserves to bankroll large projects or implement the budget is not feasible, as the practice will discourage foreign lenders and foreign direct investment (FDI) regarding involvement in Bangladesh. They have said the current $36 billion forex reserves are essential during the pandemic situation as the remittance outlook remains bleak.
Wage growth pitches to five-year low
Wage growth slowed to a five-year low in the just-concluded fiscal year driven by the income loss in the manufacturing and services sectors as the coronavirus pandemic-induced shutdown wiped out livelihoods of a major portion of the population in the last quarter. General wage grew 6.35 per cent in fiscal 2019-20, which was 6.4 per cent a year earlier, according to the Wage Rate Index (WRI) prepared by the Bangladesh Bureau of Statistics (BBS). This is the lowest wage growth since fiscal 2015-16.
DSEX exceeds 4,000-mark after five weeks
The core index of the prime bourse crossed the ‘psychological’ threshold of 4,000-mark after five weeks Tuesday as buoyant investors showed their appetite following the ultimatum by the regulator on complying with minimum shareholding by directors of the listed companies. DSEX, the key index of the Dhaka Stock Exchange, went up by 7.15 points or 0.17 per cent to settle at more than one month high at 4,001, since May 31.
Bangladesh Bank finally sees scope for taka depreciation
Exporters have been demanding depreciation of the taka against the US dollar to stay competitive in the export market for a very long time. Now, the Bangladesh Bank, which has been managing the depreciation pressure through artificial interference, is finally feeling the need for depreciation as well.
Shift focus to Asia to boost exports
Apart from the traditional markets like Europe and the US, Bangladesh should focus more on the Asian markets to revive export earnings during the time of the pandemic, said Mustafizur Rahman, a distinguished fellow of the Centre for Policy Dialogue (CPD). About 80 per cent of the country’s exports are destined for the European and American markets, while Asian nations don’t get due importance though they hold huge potential, he told The Daily Star in an interview recently.
Govt mulls rice import duty cut
The government is thinking of slashing the duty on rice import to keep the market price of the item stable as the price continued to rise in the country despite the bumper production of Boro paddy.
The food ministry in release on Tuesday said that despite the bumper production, if any quarter tries to make the rice market unstable and rice mill owners show reluctance in delivering rice to the government warehouse on time as per the contract, the government would reduce the duty on rice import.