business
Gold price goes up by Tk 3,499 per bhori over just two days
Bangladesh Jewellers Association (BAJUS) has hiked the price of gold today to a historic peak, increasing it by Tk 1,750 per bhori (11.664 grams), thereby setting the price of 22-carat gold at Tk 117,573 per bhori.
This adjustment reflects the fastest pace of growth in the global gold market and marks the highest pricing for gold in the nation's history.
Following the global trend, BAJUS announced the price increment on Monday, effective from 4 pm the same day, as detailed in a press release. This announcement came closely after a similar increase was instituted on Saturday, cumulatively elevating the gold price by Tk 3,499 per bhori over just two days.
Under the new pricing regime, gold of various purities will see revised rates: 22-carat gold is now priced at Tk 117,573 per bhori, or Tk 10,080 per gram; 21-carat at Tk 112,208; 18-carat at Tk 96,228; and traditional gold is set at Tk 80,190 per bhori.
While the cost of gold has seen significant adjustments, the price of silver remains constant, with 22-carat silver priced at Tk 2,100, 21-carat at Tk 2,006, 18-carat at Tk 1,715, and traditional silver at Tk 1,283 per category.
This upward trajectory in gold prices aligns with the global market trends, where the price per ounce (31.103 grams) has escalated to US $2,329, a stark rise from prices below $2,000 observed on February 14.
The surge in gold prices on the international stage is largely attributed to anticipations of a policy interest rate cut by the Federal Reserve of the USA, sparking a rapid increase in gold investments. This phenomenon has significantly influenced the pricing strategy of gold in Bangladesh, reflecting the interconnected nature of global financial markets and commodities.
BASIC Bank to merge with City Bank in strategic consolidation move
In a significant development within Bangladesh's banking sector, BASIC Bank is set to merge with City Bank, following a decision made during a Monday meeting between Bangladesh Bank Governor Abdur Rouf Talukder and top officials from City Bank.
The meeting saw the presence of Aziz Al Kaiser, Chairman of City Bank, and Mashrur Arefin, the bank's Managing Director and CEO, discussing the future of this strategic consolidation with the central bank's governor.
A source from the central bank revealed that the merger between BASIC Bank and City Bank will be carried out on a voluntary basis. This decision comes after City Bank's board recommended the merger on March 19, which was subsequently discussed with BASIC Bank's board and officials from both banking institutions.
Despite the merger, it has been decided that for the next three years, the two banks will continue to report their financials separately, according to sources close to the matter.
Mezbaul Haque, Executive Director and spokesperson for Bangladesh Bank, commented on the broader context of bank mergers in the country. He noted that several banks are currently engaging in discussions with the central bank on various issues, including potential mergers. Haque assured that the public would be informed once a final decision is reached on these matters.
This move comes amidst a trend of bank consolidations within Bangladesh, highlighted by the recent agreement for Padma Bank to merge with EXIM Bank in March, signaling a wave of strategic mergers aimed at strengthening the country's banking sector.
IFC invests $30 million in Pran Dairy Ltd, Habiganj Agro Ltd
To support severely impacted businesses—especially those relying on imports for raw materials—amid a shortage of US dollars in Bangladesh, IFC is investing $30 million in Pran Dairy Limited (PDL) and Habiganj Agro Limited (HAL), both part of the PRAN Group.
It aims to improve the resilience of the food processing market while creating jobs, fostering gender diversity, and strengthening the economy.
Top execs of merging bank cannot hold posts at acquiring entity: Bangladesh Bank
This is the first of IFC’s USD term loans to be used for working capital purposes in Bangladesh, which will enable PDL and HAL to sustain operations, increasing exports and preserving over 30,000 jobs, said a media release on Sunday.
The IFC will further support PRAN Group to improve participation of women as well as inclusion in their workplace through relevant policies and practices.
The F&B accounts for approximately 13 percent of the manufacturing production value and employs 19 percent of the industrial manufacturing workforce with a projected compound annual growth rate of 12 percent.
However, the current paucity of foreign exchange, higher energy prices, and power shortages in the country has disrupted the import of raw materials while constraining local commercial banks’ lending ability. Against this backdrop, IFC’s longer-term US dollar financing will help improve access to foreign exchange, supporting Bangladeshi companies to navigate the crisis, it reads.
Uzma Chowdhury, Director (Finance) of PRAN-RFL Group said, “As a net importer, regular access to US dollars is critical. But given the prevailing shortage, it has been difficult for us to access USD funds for working capital in a timely manner. By providing scarcely available US dollar working capital, IFC will help ensure the long-term stability of the company’s operations and allow us to contribute to the country’s economic stability.”
Bangladesh's example of how fast a good economy becomes weak to be taught in textbooks: Prof Mustafiz
Martin Holtmann, IFC Country Manager for Bangladesh, Bhutan and Nepal said, “Reiterating our commitment to supporting clients during a crisis, IFC’s financing aims to ease the current lack of access to foreign exchange while enabling private sector growth in Bangladesh. We are optimistic it will help improve food security while prioritizing support for strategically important industries through innovative solutions. By backing PRAN Group, IFC will also contribute to diversifying Bangladesh's export base, key to creating jobs, expanding market opportunities, and enhancing economic resilience.”
Since 2010, the IFC has invested over $3.8 billion to help the private sector grow in Bangladesh.
Bangladesh's example of how fast a good economy becomes weak to be taught in textbooks: Prof Mustafiz
Distinguished fellow of Centre for Policy Dialogue (CPD) Professor Mustafizur Rahman said Bangladesh’s example of how fast a strong economy can become a weak one will be placed in the textbooks.
He said Bangladesh’s economy was in a good position even 18 months ago, but now the situation is very uncertain.
Prof Mustafiz said this while spraking as the key speaker in a seminar titled ‘Macro Economy Stability and Next Budget’ organised by Economic Reporters’ Forum (ERF) in its auditorium on Sunday.
34% of Bangladesh's revenue spent on debt repayment: CPD
Waseqa Ayesha Khan MP, State Minister for Finance was present in the seminar as the chief guest. ERF President Mohammad Refayet Ullah Mirdha in the chair, Former BGMEA President Anwar-Ul-Alam Chowdhury (Parvez), business leader Shams Mahmud also spoke in the event.
The State Minister Waseqa Ayesh said that initiatives have been taken to reduce tax deductions in the next budget.
“The National Board of Revenue (NBR) is scrutinizing sectors in this issue. Now there is no need for tax breaks in so many sectors. Priority projects will be given importance in the next budget as well,” she said.
Apart from this, discussions are going on to increase private sector investment, said Waseqa.
She further said that universal pension system will be taken to all people in the next budget.
CPD’s Fellow Mustafiz also said, “If there is a problem in the economy, it will be the first to suffer. Then it’s bleeding. Later gangrene occurs. In the end, surgery is required. So it is better to solve the problem of the economy in the beginning.”
CPD wants adjustment in capacity charges instead of raising power tariff to reduce subsidy
He said, “A businessman travels abroad in business class 10 times a year. Drives a Mercedes Benz all year round. But looking at the income on his tax records, it looks like he needs a charity. Sometimes he is a bank loan defaulter.”
The challenges of the 21st century cannot be met with 20th century institutions. So the institutions and regulators should be reformed and allowed to work independently, said prof Mustafiz.
Broiler chicken price up by Tk100 per kg in Chattogram
People are suffering because of the sudden increase of chicken prices just before Eid in the port city.
The chicken that was sold at the price of Tk 170 per kg during the month of Ramadan is now being sold at Tk 270 per kg.
Prices of meat, chicken and egg rise on Friday
Abdul Jabbar, a buyer of the Chawkbazar area of Chittagong city, said that the price of broiler chicken was high throughout the year. “Now it’s gone out of reach ahead of Eid,” he added.
“Sellers remained silent regarding the sudden price hike. Some, however, claimed that the farmers have raised the price of chicken due to the increase in demand compared to the supply in the market.”
Alamgir, a chicken trader in the city's Riazuddin Bazar, said, "Due to the increased demand, the suppliers are charging higher prices. If the demand increases, the suppliers increase the price. So, we also increase it.”
Another trader wishing to remain anonymous said, "There is no control in the baby chicken market. The price of chicken feed and medicine is high. All the impact of production costs has fallen on the market. That’s why buyers are suffering."
Broiler and Sonali chicken prices increase by Tk 10-30 per kg in a week
It was seen from the market that broiler chicken weighing more than 2 kg is being sold at Tk 270 per kg which was sold last week for Tk 205-210. Layer and golden breed chickens are being sold at 310 to 330 per kg, and domestic chickens are being sold at Tk 500 to 550 per kg.
Mohammad Sattar, a chicken seller at Kazi Deuri market, said that the price of chicken may increase further ahead of Eid. The demand for chicken will increase around Eid. Even the suppliers will not be able to meet the demand.
The chicken market was crowded on Saturday. The buyers are buying 5 to 10 kg of chicken before Eid due to the fear of price increases.
Haji Abdul Hamid, a buyer of Riazuddin Bazaar, said, "Every year when Shabbat Qadr comes, the sellers increase the price of meat. The price of chicken has not come under Tk 200 for the last month. So I'm buying a little earlier before Eid."
The poor and middle-class people mostly consume chicken during Ramadan. However, due to the increase of chicken prices in the weeks around Sob-E-Qadr and Eid, it is now out of reach for many families.
Prospects of Safe Broiler Chicken Farming
SM Najer Hossain, Vice President of Consumers Association of Bangladesh (CAB), said that baby chicken prices or feed prices have not increased. So, there is no reason for the abnormal increase in chicken prices. “Due to the lack of proper monitoring by the administration, the buyers are suffering and the syndicate traders are cutting the pockets of the people,” he added.
Bangladesh requests Brazil to supply cattle during Eid-ul-Azha: State Minister
State Minister for Commerce Ahasanul Islam Titu on Sunday said he requested Brazil to supply sacrificial animals to Bangladesh before Eid-ul-Azha.
Prices of meat, chicken, and fish soar while vegetables and fruits decrease on Friday
He told reporters after a meeting in Dhaka with visiting foreign minister of Brazil Mauro Vieira.
Titu said animal protein was in focus in the bilateral meeting. Brazil in particular an exporter of meat at very low prices.
Prices of meat, chicken and egg rise on Friday
“They talked about it. We requested them in this regard. If it is cheaper. We will look at the possibilities to import cattle or meat,”said the state minister.
Meat and eggs to be sold in trucks at fair prices in Dhaka during Ramadan
Currently, Bangladesh is not importing animal protein or chicken. If Bangladesh imports these items, then a study will be required in this regard, Titu said.
Newly elected Board of Directors led by S. M. Mannan (Kochi) take charge of BGMEA
The newly elected Board of Directors of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) led by its President S. M. Mannan (Kochi) took charge of the trade body for the term 2024-2026.
Outgoing Board of Directors handed over the responsibility to the new Board at the 41st Annual General Meeting (AGM) held at BGMEA Complex in Uttara on April 6.
The audited accounts of BGMEA for the year 2022-2023 were adopted and the budget for the year 2023-2024 was approved in the AGM.
The new Office Bearers of BGMEA are -- Syed Nazrul Islam, First Vice President; Khandoker Rafiqul Islam, Senior Vice President; Arshad Jamal (Dipu), Vice President; Md. Nasir Uddin, Vice President (Finance); Miran Ali, Vice President; Abdullah Hil Rakib, Vice President; and Rakibul Alam Chowdhury, Vice President.
The other Board of Directors from Dhaka are -- Shahidullah Azim, Asif Ashraf, Md. Imranur Rahman, Shovon Islam, Haroon Ar Rashid, Mohammad Sohel Sadat, Ashikur Rahman (Tuhin), Anowar Hossain (Manik), Mesbah Uddin Khan, Shams Mahmud, Rajiv Chowdhury, Abrar Hossain Sayem, Md. Shahadat Hossain, Md. Jakir Hossain, Nusrat Bari Asha, Md. Mohiuddin Rubel, Shehrin Salam Oishee, Md. Nurul Islam, Saifuddin Siddiquie Sagar, and Md. Rezaul Alam (Miru), while Directors from Chattogram are -- Mohammed Musa, Amzad Hossain Chowdhury, M Ahsanul Hoque, Mostafa Sarwar Riyadh, Mohammed Rakib Al Naser, Gazi Md. Shahid Ullah, and Md. Absar Hossain.
The Sammilito Parishad, led by S. M. Mannan (Kochi), achieved a clean sweep by securing all 35 directorship positions – 26 in Dhaka and 9 in Chittagong -- in the BGMEA elections for the 2024-26 term, held on March 9, 2024.
Nurul Hoque congratulates new BGMEA President
S. M. Mannan (Kochi) has formally taken over the charge as the President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) for the term 2024-2026.
Former First Vice President of the BGMEA S. M. Nurul Hoque on Saturday congratulated the newly elected BGMEA committee led by S. M. Mannan (Kochi).
The new committee took over charge at the BGMEA`s annual general meeting held on April 6.
On March 14, the Election Board of the BGMEA declared the names of the new BGMEA Office Bearers, President and seven Vice Presidents.
Among other elected members, Syed Nazrul Islam has been elected First Vice President and Khandoker Rafiqul Islam has become Senior Vice President.
Arshad Jamal (Dipu) has been elected Vice President and Md. Nasir Uddin got the post of Vice President for Finance while Miran Ali, Abdullah Hil Rakib and Rakibul Alam Chowdhury have been elected Vice Presidents.
Trade through Sonamasjid land port to remain closed for seven days for Eid and Pahela Baishakh
Export-import between Bangladesh and India through Chapainawabganj’s Sonamasjid land port will remain suspended for seven days beginning from April 8 on the occasion of the holy Eid-ul-Fitr and Pahela Baishakh, the first day of Bangla calendar.
However, movement of travellers through the land port will remain as usual.
Harun-Or-Rashid, president of Sonamasjid Land Port C&F Agents Association, confirmed the matter saying that all kinds of business activities through the land port between the countries will remain halted for a week.
The trade through the land port will resume from April 15, he said, adding that India’s Mahdipur Land Port Exporters Association was informed about the matter.
He also said that passenger movement through check posts will remain normal despite suspension of trade.
Top execs of merging bank cannot hold posts at acquiring entity: Bangladesh Bank
Bangladesh Bank issued new guidelines on Thursday, dictating that board members and top executives of banks and financial institutions undergoing a merger will not be eligible to occupy positions within the acquiring entity.
These guidelines accommodate both consensual and compulsory mergers, emphasising the protection of depositors by either continuing their accounts in the merged entity or refunding their deposits.
This directive arrives four months after the introduction of the Prompt Corrective Action (PCA) framework, aimed at providing a structured approach for mergers and acquisitions amid the declining financial health of certain banks and financial institutions.
A notable provision in the guidelines is the job security offered to employees of the merged entity, prohibiting their dismissal for three years post-merger by the acquiring company.
Initially, under the PCA, Bangladesh Bank will categorise banks into four groups based on their loan disbursement, profitability, and other key metrics. It will then instruct underperforming banks to enhance their operations within a 12-month period.
Should these banks fail to ameliorate their condition and persist in vulnerability, the central bank will recommend voluntary mergers with other banks or financial institutions to safeguard the financial system's integrity.