Economy
Time extended for banks to collect funds from offshore units till June
January 04, 2023
· The central bank has extended the deadline for the commercial banks to collect funds from their offshore banking operations to settle import payments for capital machinery, industrial raw materials and other imports by the government till June this year.
· As per the policy, banks can collect an amount equivalent to 25% of their regulatory capital from offshore banking units.
· The policy allows banks to collect dollars from offshore banks, which provides some support to the ongoing greenback crisis.
Bepza Economic Zone gets USD24mn foreign investment
January 04, 2023
· A Chinese company, SSH (BD) Sustainable Fashion Co Ltd, will invest USD 24.1mn in the Bangladesh Export Processing Zones Authority (Bepza) to establish a high-end garment industry.
· The Chinese company will produce 36 million pieces of high-end garment products each year.
· Including SSH (BD), Bepza signed agreements with a total of 16 enterprises to establish industries in the Bepza Economic Zone for an investment of USD 387.7mn.
From: https://www.tbsnews.net/economy/corporates/bepza-economic-zone-gets-24m-foreign-investment-562690
Gold rallies to 6-month high
January 04, 2023
· Gold started the New Year on a solid note after ending a volatile 2022 largely unchanged, with prices rallying to a more than six-month peak on Tuesday as investors positioned for the Federal Reserve's latest policy minutes.
· Spot gold rose 0.8% to USD 1,838.6 per ounce by 1000 GMT, having hit a high since June 17 last year. US gold futures gained 1% to USD 1,844.7.
· Benchmark US 10-year Treasury yields fell to their session lows, reducing the opportunity cost of holding gold, which does not pay any interest.
· Elsewhere, spot silver rose 1.6% to USD 24.37 per ounce, platinum scaled 1.4% to USD 1,084.0, and palladium advanced 0.6% to USD 1,805.0.
From: https://www.thedailystar.net/business/economy/news/gold-rallies-6-month-high-3212066
Savings tool sales fall for new conditions
January 04, 2023
· One must have to submit income tax return for purchases of savings instruments of over BDT 0.5 mn.
· NBR also impose a ceiling of BDT 5mn for the total amount of money a person can invest in savings certificates.
· The overall scenario has been reflected in sales of savings certificates dipping 21 % year-on-year to BDT 349.3bn in the July-November period of fiscal year 2022-23, according to the Department of National Savings.
From: https://www.thedailystar.net/business/economy/news/savings-tool-sales-fall-new-conditions-3213036
Banking
One third of listed banks’ asset quality drops
January 04, 2023
· One-third of the listed banks in Bangladesh, especially the shariah-based lenders, suffered a drop in profits in the last five years due to the deterioration in their asset quality, higher non-performing loans, and the impact of the coronavirus pandemic.
· Of the 34 banks listed on the Dhaka Stock Exchange, 31 published information on the return on asset (ROA). Of them, 10 have almost seen a continuous fall in ROA since 2017.
· As of September, NPLs amounted to a whopping BDT 1344.0bn, representing 9.36% of the total outstanding loans in the banking sector, Bangladesh Bank data showed.
Capital Market
Alternative trading platform launched for non-listed firms
January 04, 2023
· The Dhaka Stock Exchange (DSE) launched the Alternative Trading Board (ATB), a platform for trading non-listed securities in the stock market, on Wednesday.
· To mitigate the risks of share manipulation, profits cannot be taken by selling shares within three months of purchase. The gains must be deposited in the investor protection fund as the profit pull out will require a three-month wait since the purchase.
· On the opening day, 500 shares of LankaBangla Securities were traded, with the company's shares increasing 3.36% from the opening price and trading at BDT 15.40.
· Besides, Pran Agro Limited's green bond of BDT200 crore has been listed on the first day of the alternative trading platform. However, no units of the bond were traded.
From: https://www.tbsnews.net/economy/stocks/alternative-trading-platform-launched-non-listed-firms-562958
Amazon CEO says job cuts to exceed 18,000 roles
Amazon.com layoffs will now increase to more than 18,000 roles as part of a workforce reduction it previously disclosed, Chief Executive Andy Jassy said in a public staff note on Wednesday. The layoff decisions, which Amazon will communicate starting January 18, will largely...
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