Business
BB depreciates taka by Tk 0.40 against US dollars
Bangladesh Bank (BB) on Monday depreciated taka by Tk0.40 re-fixing Bangladesh currency’s exchange rate against US dollar at Tk 87.90 to stabilize the volatile forex market.
This has been the fourth depreciation of taka against the greenback in past 27 days. Now a US dollar is selling at Tk 87.90 in the inter-bank money exchange.
Different commercial banks are selling cash dollars at five to six taka more. Dollars are being traded at Tk 97 to Tk 98 in the open market or Kerb market outside banks.
Also read: Dollar price decreases in kerb market, after a hefty raise
The BB has sold a total of $5.60 billion to different banks till May 12 of current fiscal year.
In the last FY 2020-21, the BB purchased over $8 billion from different commercial banks to keep the exchange rate of taka with the US dollar stable.
Banks received huge remittances last year, but they (banks) could not spend those due to Covid-induced fall of import demand.
Md. Serajul Islam, executive director and spokesperson of BB told UNB that the dollar price has been re-fixed at Tk 8.90.
Also read: Despite taka depreciating, banks selling dollars at Tk3-4 extra
Rising prices of other commodities, including fuel, in the global market and increased import pressure in the country have put pressure on the forex.
He said Bangladesh Bank is supplying dollars according to the demand of banks considering the market situation.
FBCCI: Tourism must grow enabling Bangladesh to achieve SDGs
The achievement of sustainable development goals by 2030 will be jolted unless a vigorous growth of tourism in the country, said the Federation of Bangladesh Chambers of Commerce and Industry on Monday.
The FBCCI Standing Committee on Tourism Development (Inbound, Outbound, Domestic & Civil Aviation) stated this at its first meeting at its office here.
“At least 6 goals of the SDGs are directly and the rest are indirectly related to tourism. Therefore, if tourism is not flourished, the achievement of sustainable development goals by 2030 will be hampered,” the apex business association said.
Also read: Any rise in power, gas tariff to be suicidal: FBCCISpeakers at the meeting, meanwhile, said some 109 sectors are directly and 1100 sub-sectors indirectly linked with the tourism industry. Every single tourist creates 10 direct and 35 indirect employment opportunities.“Therefore, tourism should be treated as a priority sector” they demanded.Tour operators urged the government to officially announce the country open for foreign tourists as the government declared for overseas businesspeople.
Read Self-reliance in seed production essential for food security: FBCCIThey also demanded the resumption of the “on-arrival visa” facilities to encourage foreign tourists to come to Bangladesh.During the meeting, businesspeople called for issuing licenses to tour operators, recognizing them as exporters, easing the process of remitting money overseas, bringing tourist destinations under the tourism ministry, and ensuring security.
Speaking at the meeting FBCCI Senior Vice President Mostofa Azad Chowdhury Babu said the tourism Industry lacks skilled manpower. The industry may hire experienced managers and other staff from Sri Lanka to deal with the problem.
Also read: FBCCI President urges Canadian companies to invest in Bangladesh’s waste managementRecognizing the government's interest in the tourism sector Vice President MA Momen emphasized securing tourist spots.The coordination between public and private efforts has to be further enhanced, he added.Vice President Md. Amin Helaly called for developing the standard of hospitality services by undertaking skill development programs.
Read FBCCI to boost business with MexicoFBCCI director Syed Moazzem Hossain said the sector must work on compliance, identifying tourism products and country branding as well as rationalizing hotel, motel, and resort fares.FBCCI Director Amzad Hussain informed the meeting that currently, the Tourism sector contributes 3.5 to 4 percent to the GDP. This contribution has to be raised to 10 percent. Therefore, a coordinated course of action has to be formulated and implemented accordingly.The former CEO of Bangladesh Tourism Board Akhtaruz Zaman Khan said that the BTB should incorporate FBCCI representation to bring the private sector demand into consideration.
Read Brand Bangladesh in a new way, FBCCI president urges entrepreneursThe Director in Charge of the standing committee M.G.R. Nasir Majumder assured that the FBCCI would continue to provide maximum assistance for the development of the tourism industry.The meeting was presided over by the chairman of the standing committee Taufiq Uddin Ahmed.Co-Chairman and the members of the committee, FBCCI Director Harun Or Rashid, and Secretary-General Mohammad Mahfuzul Hoque were also present at the meeting.
Read Abolish supplementary duty on locally-produced goods: FBCCI president
BB moves to encourage greater flow of remittance to boost forex
Bangladesh Bank has withdrawn the provision of mandatory submission of documents for getting incentive against inward remittance of USD $ 5000 or Tk50, 0000 and upward, in a move to encourage greater inflow of remittance.
Kazi Rafiqul Hassan, general manager, foreign exchange department issued a circular on Monday withdrawing the document submission obligation for an indefinite period.
As a result, the remitters will get a 2.5 per cent instant incentive for any amount of remittance sent in the formal channel, without submitting documents to the foreign exchange houses abroad.
Also read: BB halts foreign trips of its officials, employees
The BB asked all the scheduled banks to execute the decision from May 23 (Monday).
In the current fiscal year Bangladesh so far received $18.62 billion in remittance.
In the last FY 21, Bangladesh received $24.77 billion remittance, so far the record high in a fiscal year.
The sector insiders said the inward remittance flow has decreased as the hundi and other illegal channels became active after withdrawing pandemic-induced travel ban.
The government encourages increased flow of remittance in the legal format as demand for foreign currency has grown due to meet import payments.
Bangladesh is witnessing an increasing import of capital machinery, industrial raw-materials, LPG-fuel oil and commodities swelling the import payments.
Also read: Bangladesh’s forex reserves cross $44 bn thanks to better inflow
Besides, the deferred payment of LCs done during the severe pandemic is scheduled for payment now.
According to the BB over $68 billion worth of LCs opened in the first 9 months of current FY 2021-22.
BYLC Ventures opens applications for 5th cohort
Bangladesh Youth Leadership Center (BYLC) Ventures has launched a new cohort for young entrepreneurs to help them make their mark in the business world.
After completing four cohorts, BYLC Ventures started taking applications for its fifth cohort on May 19.
BYLC Ventures was launched in 2019 to help young founders give shape to their entrepreneurial initiatives.
Also read: BYLC Ventures: Cohort 4 winners announced
The accelerator programme's goals include funding the most promising founders in Bangladesh and supporting their leadership capabilities, business acumen, and business ideas.
The winning teams of BYLC Ventures Cohort 5 will receive seed funding of Tk8 lakh with the option of a further Tk20 lakh in additional investment.
They will also have access to a co-working space, mentoring, and a rigorous accelerator curriculum for six months.
Read: BYLC Career Expo 2022: Learn Leadership Skills, Use Them, and Move Up in Your Career
Twenty startups have received seed funding and training from BYLC Ventures since its inception. They created employment opportunities for over 300 people and generated combined revenue of more than Tk3 crore.
"Young entrepreneurs continue to struggle to find a strong footing and get the right support to take their business forward," says Barisha Rabbe, senior manager at BYLC Ventures.
"We provide the ideal platform for young entrepreneurs. Apart from mentorship and networking support, we help them grow and scale up their ideas into sustainable businesses," he added.
Read BYLC launches Volunteer Awards 2021
Applications for the fifth cohort are open until June 24.
Finance minister directs regulators to boost investment in stock market
Finance Minister AHM Mustafa Kamal at a meeting with Bangladesh Bank (BB) governor Fazle Kabir and other senior officials of the ministry asked them to work for boosting stock market investment.
He said the economy of Bangladesh stands on a strong base and growth position is very positive, but the unstable situation of the stock market is not acceptable.
Also read: Finance minister directs regulators to boost investment in stock market
Despite the Russia-Ukraine war and Covid-19 pandemic the economic growth of Bangladesh will continue, he said.
Kamal on Sunday gave several directives to the BB and Bangladesh Security and Exchange Commission (BSEC) for immediate implementation to boost the stock market
In order to attract capital in the market, state-owned investment institution ICB has been instructed to keep the bank's investment outside the investment limit or exposure limit of this institution in the capital market.
It has also been decided to double the size of the Tk150-crore funds given to the ICB for small investors, which had expired.
Also read:Finance minister hints at hard decisions due to Russia-Ukraine war
The finance minister asked for increased tenure of the funds along with doubling the funds’ size. The investments will be made from this fund from Monday, the finance ministry sources said.
Finance Secretary Abdur Rauf Talukder and Secretary of Financial Institutions Division Sheikh Mohammad Salim Ullah were also present at the meeting.
Govt working to strengthen BSTI global standard: Minister
Industries Minister Nurul Majid Mahmud Humayun on Sunday said the government is implementing a massive plan to establish a modern wel-equipped laboratory to enhance the capacity of Bangladesh Standards and Testing Institution (BSTI).
Humayun said there is no alternative to boost the capacity of BSTI like in developed countries to certify Bangladesh goods and products in the global markets.
Also read:ACC to submit report after drive at BSTI
The minister said this while addressing a seminar at BSTI auditorium held on the occasion of World Metrology day.
This year the day is being observed on the theme of ‘Metrology in the digital era’. The BSTI has organized different programmess in Dhaka and its regional offices to mark the day.
Zakia Sultana, secretary of the industries ministry, said that BSTI conducted 1666 ‘mobile court’ operations from May 2021 to April 2022.
Around 2985 cases were filed, resulting in a fine of Tk14.96 crore while the 2019 surveillance team of the entity conducted the drive.
Also read:BSTI for allowing import of downgraded Petrol
The BSTI sealed 27 business establishments, punished 25 people for different tenure for violating rules of BSTI. Besides, the BSTI seized and destroyed different companies’ products worth Tk 10 crore as it was harmful for human bodies.
State minister of the ministry Kamal Ahmed Majumder, senior vice-president Mustafa Azad Chowdhury, Director General of BSTI Dr Md Nazrul Anowar also spoke at the function.
Nissan has launched all-new Nissan Magnite in Bangladesh.
Ambassador of Japan to Bangladesh Ito Naoki was the chief guest at the launching event held on Saturday, who unveiled the new Nissan Magnite model.
Managing Director of Pacific Motors Ltd.- Intekhab Mahmud, Deputy Director-Farzana Khan, Assistant Director-Md. Najimul Haque and other Directors, Department heads and senior officials of the company were also present at the launching ceremony.
The all-new Nissan Magnite stands as testimony to Nissan’s DNA of relentless innovation, Japanese engineering, and advanced Nissan Intelligent Mobility (NIM) technologies, featuring numerous first-in-class elements to provide customers with a differentiated, innovative, and accessible ownership experience.
Also read: Bhasan Char needs more resources to fulfill Rohingyas’ expectations: Ambassador Naoki
With a compelling combination of ‘Carismatic’ design and solid performance, the all-new Nissan Magnite further strengthens Nissan’s footprint in Bangladesh, catering to the market’s growing demand for SUVs with an expanded offering, said a media release.
Bangladesh is also the latest addition to the Magnite’s 15 export markets – a list that includes Nepal, Bhutan, Sri Lanka, Brunei, Uganda, Kenya, Seychelles, Mozambique, Zambia, Mauritius, Tanzania and Malawi.
Designed in Japan and manufactured in India, Nissan Magnite has come to represent the best of Nissan’s global SUV heritage.
Also read: MRT symbolizes changing Dhaka’s face: Ambassador Ito Naoki
Its versatile build, advanced technology and exceptional range of safety features has seen it emerge as one of our most-coveted offerings in recent years.
This is evidenced by the significant increase in production, as well as the expansion of its export markets over the past months – and we are excited to now bring this eagerly-awaited SUV to our consumers in Bangladesh.
As the first global product to launch under the Nissan NEXT transformation plan, the Nissan Magnite recently celebrated the production of 50,000 units, achieving this milestone within 15 months despite the impact of COVID-19 and the semiconductor shortage.
Read The most popular car models in Bangladesh
It has also has won numerous awards including BBC TopGear’s "Best Turnaround Vehicle in the Indian Market" and "Compact SUV of the Year 2021"; MotorOctane’s "Game-Changer of the Year" Autocar India's "Value for Money Car of the Year"; carandbike India's "Compact SUV of the Year"; carandbike India's "Gadget of the Year" and "Best Social Media Campaign"; and FlyWheel Auto Awards' "Special Jury".
EPB assures Walton of support to boost electronics, electrical products exports
The Export Promotion Bureau (EPB) has assured Walton of its support to boost the exports of domestically made electronics and electrical products.
"We need to promote the 'brand Bangladesh' and 'Made in Bangladesh' products in the global arena," AHM Ahsan, vice-chairman of EPB, said during a visit to Walton Hi-Tech Industries headquarters in Gazipur Saturday.
Read Eid: Walton Digital Campaign Season 15 starts
EPB Director-General Mahbubur Rahman said, "Bangladesh's exports in the electronics sector started with Walton. Others are now trying to follow it. We have a lot of potential here."
"Walton's market share in Bangladesh is more than 60 percent. The company is also increasing its exports. We are ready to provide all necessary assistance to everyone, including Walton, to increase the exports of electronics and electrical products made in Bangladesh."
Also read: 'Electronics exports to overtake apparel'
Budget 2022-23: Govt to increase fertilizer subsidy to ensure food security
The government has decided to increase fertilizer subsidy to Tk 15,000 crore in the upcoming budget for fiscal year (FY) 2022-23, aiming to boost domestic food production.
Despite a 58 per cent hike in fertilizer price in the global market, the government wants to avoid price hike as a stimulus to the farmer to ensure more crops production and control the price of food items in the local market.
In the last 13 years from 2008-09 to 2020-21, the government subsidised around Tk 82,000 crore for the single sector. In FY 2020-21, Tk 7,717 crore was spent for fertilizer subsidy.
The Ministry of Agriculture is encouraging farmers to use agricultural inputs including incentives in fertilizers and seeds to ensure food security.
Also read: Any rise in power, gas tariff to be a suicidal: FBCCI
A senior official of the National Board of Revenue (NBR) said a decision has been taken in this regard at a meeting at the Prime Minister's Office after the recommendation of the Finance Division recently.
The government wants to create more employment in the farm sector and avoid any kind of instability in food production ahead of the national election, said the official.
According to the Bangladesh Bureau of Statistics, the agriculture sector’s contribution to GDP is about 13 percent.
In FY 2021-22, the government allocated a total of Tk 9,500 crore as subsidy for the sector. But due to rise in the price of fertilizer in the international market, the actual subsidy of the government till April, 2022 stood at around Tk 13,332 crore. However, it is estimated that the subsidy could exceed Tk 25,000 crore in the current fiscal year.
Talking to reporters recently, Agriculture Minister Md. Abdur Razzaque claimed that this year the government will spend Tk 30,000 crore for fertilizer subsidy as agriculture is being given utmost importance in the budget of 2022-23.
In the last FY, the import cost of urea fertilizer was Tk 32 per kg, TSP Tk 33, MOP Tk 23, DAP Tk 37, which has increased in the current FY to Tk 96, Tk 70, Tk 54 and Tk 93 per kg respectively.
However, urea is being distributed among the farmers at Tk 18 per kg, TSP at Tk 22, MOP at Tk 15 and DAP at Tk 16 per kg respectively.
Also read: Dollar price decreases in kerb market, after a hefty raise
In the FY 2021-22, the demand for chemical fertilizers is 57.50 lakh tonnes. Of this, 26 lakh tonnes urea, 7.5 lakh tonnes of TSP, 7.5 lakh of MOP and 16.5 lakh of DAP.
Any rise in power, gas tariff to be suicidal: FBCCI
Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) has demanded the government does not raise the tariff of power and gas saying that any rise such utilities would be a suicidal one.
The leaders of the highest business body made the demand while addressing a press conference at its Motijheel office in the city on Saturday.
They said any move to raise power and gas tariff would be detrimental to the country’s trade and industries while they are trying to recover from the shock of the global pandemic Covid-19.
FBCCI president Jashim Uddin read out at written statement while the president of the Bangladesh Textile Mills Association (BTMA) Mohammad Ali Khokon, vice president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Shahidillah Azim and other leaders of different business organizations were present on the occasion.
Read: Halt road construction works for 14 days to ease Eid travel: FBCCI
The leaders said that this is not the right time to increase the power and gas tariff. “The move has been initiated by the bureaucrats to put the government in an embarrassing situation,” said the FBBCI president.
The call from the top business bodies came against the backdrop of the recent public hearings in response to the two separate proposals, one moved by state-owned Petrobangla to raise gas price at retail level by 117 percent and another by state-owned Bangladesh Power Development Board (BPDB) to raise power tariff at bulk level by 65.57 percent.
Bangladesh Energy Regulatory Commission held the public hearing, but has yet not given any verdict on the proposals.
The FBCCI leaders said the decision on any hike in power and gas tariff should come from the government’s political level, not from the bureaucratic level.
FBCCI president Jashim Uddin said still the government has been purchasing electricity from the very costly and quick rental power plants while there is no utility of such costly plants.