Live Tv
Rtv Plus
Forex Reserves Rise as Governor Assures Economic Stability
Rtv News
20 Oct 2024, 19:10
Photo: Collected
Bangladesh Bank Governor Ahsan H. Mansur has reported an increase in foreign currency reserves since the interim government took office, following the fall of the Sheikh Hasina administration amid a student-led uprising against inequality. He assured that if things go smoothly, economic stability could return within the next year.
Key Stats:
Foreign Reserves (as of October 8, 2024): Net Reserves $19.82 billion, Gross Reserves $24.97 billion
Debt Repayments: Government Debt Initially $2.5 billion for power, fuel, and essential services; Repaid in Last 2 Months $1.8 billion; Remaining Debt $700 million
Foreign Debt Burden: $103 billion
Loan Plans: Central bank preparing to secure $10 billion in new international loans
Outlook: Target to clear remaining debt in 2 months; Economic stability expected to return within 1 year
In an interview with UNB on Sunday (October 20), the governor said that while reserves were previously depleting by $1.3 billion per month under the previous government, they are now on a positive trend. He added that significant payments have been made to settle debts related to fertilizer, electricity, and some loans owed to Adani and Chevron, reducing the overall debt burden.
The governor further disclosed that the government owes around $2.5 billion to various service providers for electricity, fuel, and other essential services. However, in the past two months, the central bank has repaid $1.8 billion, bringing the outstanding debt down to $700 million.
He expressed optimism that reducing these debts would ease pressure on the economy. "Our target is to clear the remaining debt within the next two months. If we succeed, market liquidity will improve, leading to a boost in economic activities," he added.
Read More
As of October 8, according to the IMF's BPM6 reserve calculation method, Bangladesh’s net foreign reserves stood at $19.82 billion, with the gross reserves at $24.97 billion.
The central bank is also preparing to secure an additional $10 billion in loans from international organizations. However, Governor Mansur expressed concerns over the growing burden of foreign debt, which currently stands at $103 billion. He cautioned that patience will be required over the next year to manage the situation effectively.
Comments
New Guidelines from the Central Bank on Savings Certificates
After the maturity of savings certificates, customers often have to go from bank to bank to withdraw their principal amount, facing various forms of harassment. To free customers from this inconvenience and harassment, the central bank has issued new guidelines. According to these guidelines, from now on, the full principal along with the accrued profit must be deposited into the customer's bank account on the day of the savings certificate's maturity.
On Tuesday, September 24, Bangladesh Bank’s Debt Management Department issued this directive.
The guidelines state that profits or interest from savings certificates sold through the National Savings Scheme Online Management System must be ensured to reach customers on time via checks. Additionally, on the maturity date of the savings certificates, the full amount, including the profit, must be deposited into the customer's designated account through the central bank’s EFT (Electronic Funds Transfer) system, based on the intimation.
Furthermore, it is instructed that the sales and post-sale services of instruments (savings certificates and savings bonds) under the National Savings Scheme, as per the circular issued on June 20, 2022, must be strictly followed.
Garment Industry Rebounds: / Factories Resume as Workers’ Demands Are Met
Most factories have resumed production, bringing an end to the ongoing unrest in the garment industry. The unrest subsided in the industrial area of Ashulia after the workers' 18-point demands were accepted, leading the majority of workers to return to work. However, due to unresolved issues related to wages and other problems, 19 factories remain closed.
On Wednesday, September 25, workers were seen returning to factories in areas such as Palli Bidyut, Baipail, Jamgara, Narsinghpur, Nishchintpur, Zirabo, and Ghoshbagh in Ashulia.
Confirming the workers’ return to work, Mohammad Sarwar Alam, Superintendent of Industrial Police-1 in Ashulia, spoke to the media.
He said that most garment workers have returned to work, though 14 factories in Savar and Ashulia remain closed under Section 13(1) of the Labor Law 2006. Additionally, five factories are observing a general holiday.
Key Highlights:
Production Resumes: Most garment factories in Ashulia have resumed operations after resolving worker unrest
18-Point Demand Accepted: The BGMEA accepted an 18-point demand from workers, leading to the return of a majority of the workforce
Remaining Closures: 19 factories, including 14 under labor law restrictions and 5 observing holidays, remain closed due to wage disputes and financial issues
Worker Return Confirmed: Industrial Police confirmed that workers have rejoined most factories, with production restarting in key units like Ha-Meem, Sharmin, and Nasa
Unresolved Factories: Some factories are still closed due to lack of notice and failure to engage in discussions with workers
Uplifting Sentiment: The resolution brings relief to the industry, with hopes of full recovery as ongoing concerns are addressed
Factory authorities have kept these factories, mostly garment manufacturing units, closed due to financial constraints and unresolved wage-related issues. Among the closed factories are also three to four non-garment units producing leather goods and food products.
He further mentioned that on Tuesday, the BGMEA (Bangladesh Garment Manufacturers and Exporters Association) accepted the workers' 18-point demands, leading to the return of workers from Wednesday morning. Production has resumed in several factories, including Ha-Meem, Sharmin, and Nasa in Narsinghpur, Ashulia. However, some factories remain closed for monitoring the working conditions. Workers at a knitwear factory named Knit Wear resumed work but later held a strike over their demands.
Khairul Mamun Mintu, Legal Secretary of the Bangladesh Garments and Sweaters Workers' Trade Union Center, said that the workers' 18-point demands were accepted during a meeting with authorities yesterday. However, the factory authorities were supposed to post notices at the gates to inform workers of the acceptance of demands and their return to work. The factory owners were also asked to meet with workers to discuss the situation. Workers in factories where the owners were cooperative have already returned to work.
Mintu added that production has not yet resumed in several factories because no notice was given, and the owners have not engaged in discussions with the workers.
10 Banks Agree to Lend to Weak Banks
Ten banks have agreed to provide loans to banks weakened by financial irregularities. Bangladesh Bank will guarantee or provide security for these loans.
This decision was made in a meeting on Wednesday (September 25) with the Governor of the central bank, Dr. Ahsan H. Mansur.
Among the 10 banks agreeing to provide loans are the state-owned Sonali Bank and private banks such as BRAC, Eastern, The City, Shahjalal Islami, Mutual Trust, Pubali, Dhaka, Dutch-Bangla, and Bank Asia.
Regarding the matter, Bangladesh Bank’s spokesperson and Executive Director Husne Ara Shikha informed reporters that if the lending banks request their loaned money back, Bangladesh Bank will repay them within three days. No bank will be allowed to take any extra funds for providing these loans.
She added that Bangladesh Bank will determine how much liquidity support each weak bank will receive, while the interest rates will be agreed upon between the two banks.
The managing directors (MDs) or representatives of these banks attended the meeting with the Governor.
Additionally, five banks have already signed agreements with Bangladesh Bank to receive liquidity support. These are National, Social Islami, First Security Islami, Union, and Global Islami banks from the private sector.
India Lifts Rice Export Ban After 14 Months
India has lifted the ban on rice exports after 14 months. In a statement issued by the country's central government on Friday, it was announced that exporters are now allowed to export all types of rice, except Basmati.
The export duty on rice has also been reduced. Previously set at 20%, the rate has now been lowered to 10%.
India's rice exporters are naturally elated by this decision. Suraj Agarwal, the CEO of one of India’s leading rice export companies, Rice Villa, told Indian media outlet NDTV, "This decision by the government will be a game-changer for India's domestic agriculture sector as well as the international rice market. On one hand, rice prices in the global market will decrease, while on the other, farmers will also benefit."
Key Stats:
Duration of Rice Export Ban: 14 months.
Export Duty Reduction: Previously 20%, now reduced to 10%.
Global Impact of India’s Rice Export Ban:
Rice prices in the international market increased by 11.7%.
This was the highest price surge in 11 years.
India’s Share in Global Rice Trade:
40% of the rice traded globally comes from India.
Top Rice-Producing Countries:
Bangladesh, China, India, Indonesia, Thailand, and Vietnam.
Rice is primarily produced in India’s eastern, northeastern, and southern states. Last year, production in these regions was affected due to insufficient rainfall. In response, on July 20, 2023, the central government of India imposed a ban on rice exports to stabilize the domestic market.
Rice is the staple food for more than 3 billion people worldwide. According to the U.S. Department of Agriculture, six countries—Bangladesh, China, India, Indonesia, Thailand, and Vietnam—are currently the top rice producers in the world.
However, India remains the leading exporter of rice. About 40% of the rice traded in the global market comes from India.
Following India's ban on rice exports, the international market saw a rise in rice prices. According to Reuters, the price of all types of rice increased by 11.7%, marking the highest price surge in 11 years.
$2.40 Billion Remittance Received in September
In September, expatriates sent $2.40 billion in remittances to Bangladesh. Converted to local currency (at a rate of 120 BDT per USD), this amounts to approximately 28,856.40 crore BDT. On average, the country received $80.2 million per day during the month.
This information was revealed in an updated report from the Bangladesh Bank on Tuesday (October 1).
The report states that $2.40 billion in remittances were received in September, compared to $2.22 billion in August, indicating an increase in remittance inflow.
Key Highlights:
Total Remittance: $2.40 billion (approx. 28,856.40 crore BDT)
Daily Average: $80.2 million
Increase from August: Up from $2.22 billion in August
Previous Highs:
June: $2.53 billion
July: $1.91 billion (lowest in 10 months)
August: $2.22 billion
In September, $638.25 million was received through state-owned banks, $109.98 million through specialized banks, $1.65 billion through private banks, and $6.21 million through foreign commercial banks.
Additionally, between September 29 and 30, expatriates sent $291.68 million in remittances. Between September 22 and 28, the country received $478.89 million, while from September 15 to 21, $467.03 million in remittances were received. During the second week of September (September 8 to 14), the remittance inflow was $582.66 million, and in the first week, expatriates sent $584.54 million.
Earlier, in June, remittance inflows stood at $2.53 billion, while in the first month of the current fiscal year (July), remittances dropped to around $1.91 billion—the lowest in the past 10 months.
In August, remittances increased again, with expatriates sending $2.22 billion.
Bankers note that since the beginning of the new government, expatriates have reduced their use of informal remittance channels (like hundi) and are now sending remittances through official banking channels, even if they have to wait in line. This shift has led to a significant increase in the country's remittance earnings.
Online Income Tax Return Filing Number Exceeded 50,000
From this system, taxpayers can pay taxes through Internet banking, card payment (debit or credit card), and mobile banking and get the facility of downloading and printing copies of submitted returns, receipts, income tax certificates, and TIN certificates. You can also download and print the e-return filed for the previous year.
Spontaneous and motivated taxpayers have already used the e-return option on the National Board of Revenue (NBR) portal till October 2 due to its ease and convenience. As a result, the number of online income tax return filings has crossed 50,000.
NBR Director (Public Relations) Syed A Mu'men told the media that the e-return registration process has already been made more tax-payer-friendly. A biometric SIM registered with a taxpayer's national identity card is required for successful registration. To verify whether the number used by the taxpayer is biometrically registered or not, dial *16001#.
NBR Chairman Abdur Rahman Khan said that all transactions of NBR will be converted into digital form so that taxpayers can get fast and quality services. That is why our activities are ongoing.
He further said that NBR will work towards digital transformation in the coming months, e-return service center is a part of that.
NBR congratulates those taxpayers who have already successfully filed their income tax returns online. Besides, the organization has humbly requested other individual taxpayers to file income tax returns online using the portal on time.
Incidentally, the National Board of Revenue has set up a call center to assist taxpayers with any issues related to e-returns. Last September 12, taxpayers got immediate solutions to e-return-related queries by calling call center number 09643717171. Besides, taxpayers can report any problem related to e-return in writing and get solutions from the e-tax service option of www.etaxnbr.gov.bd.
All Jewellery Shops to be Closed on 11 October: BAJUS
On the occasion of Durga Puja, all jewellery shops in the country will be closed on Friday (October 11).
Bangladesh Jewelers Association (BAJUS) informed this in a circular on Tuesday (October 8).
It is said that as usual on the occasion of Autumn Durga Puja, BAJUS has decided to close all jewellery establishments across the country including the capital Dhaka, on Ashtami Puja on October 11.
According to the announcement of BAJUS, all jewellery associations in the country will be closed on October 11.
Incidentally, the country's market is currently selling 22-carat gold at Tk1,37,449. Tk1,31,197 per 21 carat, Tk1,12,453 per 18 carat, and Tk92,286 per traditional method gold.
Apart from this, the selling price of gold has to be compulsorily added with a government-mandated 5 percent VAT and BAJUS-mandated minimum wage of 6 percent. However, the wages may vary depending on the design and quality of the jewellery.
The price of gold has been adjusted 42 times in the country's market so far this year. Where the price has been increased 25 times, and reduced 17 times. In 2023, the price was adjusted 29 times.
