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Economy
Net forex reserves can clear four months’ import bill: CPD
December 17, 2022
· Bangladesh now has the ability to clear import payments of four months if the country's net forex reserves are taken into consideration, the Centre for Policy Dialogue (CPD) said today.
· The nation's gross forex reserves hit USD 35.8 billion in October this year, down from USD 46.5 billion in the same period last year, it said.
· The overall balance came down to (-) USD 4.87 billion in the July-October period this year, which was (-) USD 1.34 billion in the same period previous year.
Default loan triples in 10 years: CPD
December 18, 2022
· The volume of non-performing loans (NPLs) has increased by more than three times in the last 10 years, according to a report of the Centre for Policy Dialogue (CPD) yesterday.
· NPLs surged to BDT 134,396 crore in the first quarter of the ongoing fiscal year of 2022-2023 from BDT 42,725 crore in the fourth quarter of FY2012, as per the report.
· CPD Executive Director Fahmida Khatun made a presentation on the report titled "Managing the Economic Crisis: CPD's policy recommendation".
· "However, actual NPL will be much higher if loans in special mention accounts, loans with court injunctions, and rescheduled loans are included," she said.
From: https://www.thedailystar.net/business/economy/news/default-loan-triples-10-years-cpd-3198761
MFS transactions rebound in Oct
December 16, 2022
· Transactions through mobile financial services (MFS) rebounded in October following a few months of decline thanks to a rise in government disbursements, cash-out and utility bill payments.
· The volume of transactions increased by BDT 5,567 crore, or 6.35 per cent, to hit BDT 93,013 in October compared to BDT 87,635 crore a month earlier.
· "The main reason of the growth in October is the increased amount of government disbursements through MFS," said Muhammad Zahidul Islam, head of communication at Nagad.
· MFS transactions had reached BDT 94,293 crore in June, when Eid-ul-Adha was celebrated, according to the latest data from Bangladesh Bank.
· However, the all-time high was BDT 107,460 crore in April, which was bolstered by the country's top shopping season of Eid-ul-Fitr.
· Industry people mainly attributed the decline in July and August to the usual drop in transactions during the months following a big festival.
· On a year-on-year basis, the amount of MFS transactions increased by 21 per cent in October.
From: https://www.thedailystar.net/business/economy/news/mfs-transactions-rebound-oct-3197446
Net foreign loans, grants fall by 31.7pc in July-Oct
December 17, 2022
· The country’s net receipts of foreign aids in the form of loans and grants dropped by 31.7 per cent in the July-October period compared with that in the same period in the previous year.
· According to Bangladesh Bank data, the net foreign aid, after principal repayment, decreased to USD 1,419 million in July-October from USD 2,077.45 million in the same period of the past year.
· Experts said that the country took foreign assistance to finance budget deficit, to address huge balance of payment deficit in international trade and to fund the annual development programme.
· The foreign aid could be receipt as loans and grants, bilateral aid and multilateral aid, food aid, commodity aid and project aid.
· In July-October, the total foreign aid declined by 25 per cent to USD 1,970 million from USD 2,628 million in the same period in the past year.
From: https://www.newagebd.net/article/189287/net-foreign-loans-grants-fall-by-317pc-in-july-oct
'China now largest FDI source of BD'
December 18, 2022
· China has become the largest FDI (foreign direct investment) source country of Bangladesh in terms of the gross flow of USD 940 million for fiscal year 2022.
· It has also ranked top in foreign investors with 104 investors at eight export-processing zones (EPZs), said Song Yang, economic and commercial counsellor of Chinese Embassy, on Saturday.
· He was addressing the 'Forum on China-Bangladesh Human Resources Development Cooperation and Reunion of Participants of Chinese Government Training Programmes' hosted by the embassy at a city hotel.
· "China has been the largest trading partner of Bangladesh for the past 12 consecutive years," he said.
· The trade volume between the two countries increased by 58 per cent last year showing strong resilience of bilateral trade during the Covid-19 pandemic.
From: https://today.thefinancialexpress.com.bd/first-page/china-now-largest-fdi-source-of-bd-1671297967
Export of services earning substantial forex
December 18, 2022
· Bangladesh's services sector sustains increased export earnings even during this global economic crisis as it posted 6.12-percent growth in the first quarter of the current fiscal, official data show, driven by technology.
· The country received USD 2.01 billion from services export during the July-September period (Q1) of the current fiscal year (FY2023), Export Promotion Bureau (EPB) data showed.
· In the same period (Jul-Sep) last FY2022, the earnings from the sector was USD 1.89 billion, according to the EPB data.
· Exports from education and tourism services dominated the Bangladesh export-earning growth from the overseas market as it posted 62-percent expansion during the Q1 of FY2023 compared to the same period of FY2022.
· The ICT and telecommunications sector posted an impressive foreign-exchange earning in the FY2023Q1 with 28.58-percent growth in the export.
Commodity
Soybean oil price cut by BDT 5 a litre
December 15, 2022
· The commerce ministry has reduced the price of bottled soybean oil by BDT 5 to BDT 187 per litre.
· The new price will be effective from 18 December, said a directive signed by Mst Shamima Akter, joint controller (IIT-5) of the commerce ministry.
· According to the directive, the prices of a one-litre bottle of soybean oil has been reduced from BDT 192 to BDT 187, a five-litre bottle from BDT 925 to BDT 906 and loose soybean oil from BDT 172 to BDT 167 per litre.
· Besides, the price of loose palm super oil has been reduced from BDT 121 to BDT 117 per litre.
· Sources at the commerce ministry said every time the price is reduced, the traders wait at least a week for the oil of that price to come to the market. When the price increases, oil at a higher price enters the market within a day or two. To avoid this situation this time, five days have been given after the decision, so that soybean oil at reduced price is available in the market from the date the order becomes effective.
· The price was reduced due to the decrease in the price in the international market, said the commerce ministry.
From: https://www.tbsnews.net/markets/soybean-oil-price-dropped-tk5litre-552130
note: this post is for research and analysis only.