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6 MDs of Banks Sent on Forced Leave
Rtv News
05 Jan 2025, 16:46
Photo: File Picture
A total of six bank Managing Directors (MDs), including those from four banks under the control of the controversial S Alam Group, have been sent on forced leave.
According to a notification issued by the Bangladesh Bank on Sunday (January 5), the MDs were instructed to take leave.
The banks involved in the loan scam are: First Security Islami Bank, SIIBL, Union Bank, Global Islami Bank, EXIM Bank, and ICB Islami Bank.
Among them, the MD of First Security Islami Bank was sent on forced leave on Saturday.
It is understood that the decision to conduct a "forensic audit" on these private banks, which have fallen into liquidity crises due to loan fraud and various irregularities, was made by the task force formed for banking sector reforms. The audits will take place while the MDs are on leave. Since they were part of the previous management during these issues, their continued presence could potentially compromise the audit's impartiality.
Therefore, to avoid any controversy and ensure impartiality, they have been sent on leave.
It has also been reported that the forensic audit will review all transactions that took place within a specific period and investigate whether any data was deleted. Bangladesh Bank has agreed with this decision.
An official from the central bank stated that if the previous officials remain in place, there could be a possibility of manipulation during the audit, which is why both the Bangladesh Bank and the banks decided on this course of action.
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Bottled Soybean Oil Back to Market After Price Hike
"For the past few days, shopkeepers kept saying the same thing—bottled soybean oil has been unavailable. However, if it was found in rare places, it was claimed a high price. However, today (December 10), I see a completely different scenario in the market. Every shop has plenty of oil. That means whatever happened till now was nothing but a scheme by the syndicate to hold people hostage," said Mansura Hossain, a private-sector employee while shopping for daily essentials in Karwan Bazar.
Expressing her frustration, Mansura said, "Prices of essential commodities are often raised under the pretext of shortages, causing hardships for ordinary people like us. We are forced to buy at higher prices."
Al-Amin, a CNG driver, said, "Yesterday morning I returned empty-handed because there was no 1-liter bottled soybean oil. But today, bottled soybean oil is available everywhere. Does this make any sense? Are they free to do whatever they want without any accountability?"
The CNG driver further alleged, "If there was a shortage, then where did all this oil suddenly come from? Or are the traders orchestrating this to hike the prices? The government should investigate the real reason behind this."
On Tuesday morning (December 10), a visit to the capital's Karwan Bazar area revealed shelves overflowing with bottled soybean oil. However, as the new price-adjusted oil had not yet arrived, consumers were still able to buy at the previous rates.
Speaking to several retailers, the reporter stated that after the announcement of the price hike, dealers increased the supply of oil in the market. However, oil at the new price has not yet been supplied in the market. As a result, consumers are buying 1-liter bottled soybean oil for 167 BDT and a 5-liter bottle for 818 BDT.
Retailers also mentioned that from Wednesday (December 11), the new oil will arrive in the market and will be sold at 175 BDT per liter.
Earlier, on Monday (December 9), Trade Advisor Sheikh Bashir Uddin announced an increase in the price of both bottled and loose soybean oil per liter an 8 BDT.
He said the price of bottled soybean oil has been set at 175 BDT per liter, while loose soybean oil is priced at 157 BDT per liter.
Citing the increase in prices on the international market, the advisor added, "The primary reason for the price hike is the supply shortage of edible oil globally."
Indian Rupee Hits Record Low
The Indian rupee has fallen to its lowest value ever against the US dollar. On Tuesday (December 10), the rupee reached an all-time low of 84.85 against the dollar.
According to a report by Reuters, the decline of the rupee against the US dollar continues. On Tuesday, the rupee hit its historic low, with the exchange rate dropping to 84.85 rupees per dollar.
Simultaneously, the yield on the 10-year government bond fell by 2 basis points to 6.6954%.
Earlier, on December 4, the rupee had dropped to 84.75 against the dollar. This new dip surpassed that level, setting the exchange rate at 84.85 rupees per dollar.
The situation has been attributed to heightened expectations of an interest rate cut following the announcement of Sanjay Malhotra as the new governor of the Reserve Bank of India (RBI). Malhotra will assume office on Wednesday (December 11), succeeding outgoing governor Shaktikanta Das, whose six-year term ended on Tuesday.
Vegetable Prices Begin to Drop
Vegetable prices in the capital markets have started to drop. Traders say the markets are now filled with winter vegetables, bringing some relief in prices. While some vegetables are still being sold at Tk80 to 150 per kg, most are now priced between Tk50 and 60. Although winter vegetables are expected to be more cheaper during this season, the low market prices of vegetables are offering some respite.
A visit to several markets in Kawran Bazar, Agargaon, Shyamoli, and Kallyanpur on Friday (December 13) revealed this scenario.
Traders noted that within a few days, more winter vegetables would arrive in the markets, likely reducing prices further.
In Kawran Bazar, new potatoes are selling at Tk100 per kg, tomatoes at Tk120, green chilies at Tk100, hyacinth beans with seeds at Tk100, bitter gourds at Tk100, cucumbers at Tk80, carrots at Tk80, radishes at Tk30, and spring onions at Tk80 per kg.
Other vegetables include string beans at Tk100 per kg, round eggplants at Tk80, long eggplants at Tk60, medium-sized cauliflowers at Tk50 per piece, cabbages at Tk50 per piece, papayas at Tk50 per kg, lady's finger at Tk80, pumpkins at Tk40 per kg, regular hyacinth beans at Tk50, turnips at Tk50, and onion flowers at Tk30 per bundle.
According to vegetable vendor Zakir, prices have not decreased as much as expected. "In previous years, vegetable prices used to drop to Tk30 to 40 per kg, but this year they haven't. However, prices are lower than before," he said.
Shahin, a shopper from Farmgate, remarked "Tomatoes are still around Tk150 per kg. Cucumbers and carrots are also expensive. Where is the price reduction?"
Homemaker Fatema Akter commented, "While some vegetables are cheaper, many are still overpriced. Only if vegetables were priced at Tk30 to 40 per kg could we truly say prices have dropped."
Meanwhile, in Kawran Bazar's wholesale market, local onions are selling for Tk70 to 120 per kg, and Indian onions for Tk70 to 80. Pabna's local onions are being sold for Tk120 per kg. Additionally, Chinese ginger is priced at Tk160, Chinese garlic at Tk210 to 220, fresh ginger at Tk100 to 110, and garlic from Natore at Tk230 to 240 per kg. An analysis of the market over the past few months shows a slight decrease in wholesale ginger prices, while garlic prices remain mostly unchanged.
In terms of meat, beef is selling at Tk750 per kg, and goat meat at Tk1,100 per kg. Farm chickens are being sold at Tk180, Pakistani chickens at Tk310 taka, and local chickens at Tk520 per kg.
Chicken vendor Kalam noted that poultry prices have risen slightly, selling for Tk190 per kg, an increase of Tk10 in just two days. Meat prices in other markets are almost the same. Eggs are being sold at Tk145 to 150 per dozen.
468 Tons of Potatoes Imported from India through Benapole
A shipment of 468 metric tons of potatoes has been imported from India.
The consignment arrived at the Benapole Landport Railway Station in Jessore on a freight train on Thursday evening (December 12).
The shipment is scheduled to be unloaded on Saturday (December 14).
Nazmul Arefin Jony, a representative of C&F agent Alam & Sons at the land port, said necessary documents will be submitted to Benapole Customs House on Saturday for customs clearance.
After completing customs and railway station procedures, the shipment will be unloaded either at the Benapole port or Noapara. From Noapara, the potatoes will be distributed to various parts of the country, including Dhaka and Chattogram.
Benapole station master Saiduzzaman informed the media that the potatoes were imported by Tata Traders, an importing firm based in Chapainawabganj, Rajshahi. The consignment was exported by Atif Export, an exporter from Malda, India. A total of 9,460 bags of potatoes, weighing 468,000 kilograms were imported on a single train. The import value of the shipment is USD 1,007,640.
IMF Lowers Bangladesh's Growth Forecast to 3.8%, Inflation to Hit 11%
The International Monetary Fund (IMF) has revised its economic growth forecast for Bangladesh to 3.8% for the fiscal year 2024-25, while projecting an average inflation rate of approximately 11%.
The donor organization made this announcement in a statement on Wednesday. Previously, in October, the IMF had predicted a 4.5% growth rate for the same period.
The statement attributed the reduced growth projection to public unrest, floods, and strict policy measures, estimating that real GDP growth for 2024-25 will decline to 3.8%. However, the IMF expects growth to rebound to 6.7% in the following fiscal year.
Regarding inflation, the IMF stated that the average rate is likely to remain around 11% during 2024-25. However, it anticipates inflation will drop to 5% in 2025-26, driven by stricter policies and easing supply pressures.
The World Bank's forecast for Bangladesh's GDP growth remains higher than the IMF’s latest projection.
In October, the World Bank projected 4% growth for 2024-25, though this was a reduction from its earlier forecast of 5.7% in April, citing recent political instability in Bangladesh.
Both forecasts suggest that economic growth for Bangladesh in 2024-25 will be the lowest since the 2019-20 fiscal year, which was impacted by the COVID-19 pandemic.
Garment Export Trends in Europe: A Resilient Performance
Europe remains the largest destination for Bangladesh’s ready-made garments. Under the Generalized System of Preferences (GSP) scheme, Bangladesh benefits from duty-free access throughout Europe.
However, indirect and direct wars in Europe have led to persistent inflation in recent years, increasing living costs and reducing consumer spending. Despite these challenges, Bangladeshi garment exports to Europe have maintained a positive trajectory.
Positive Winds for Garment Exports in Europe
From January to October 2024, Bangladeshi garments worth $16.52 billion were exported to Europe, reflecting a modest growth of 1.43% compared to $16.28 billion in the same period last year. In contrast, China, the largest garment exporter to Europe, recorded a 1.14% growth, while Turkey, the third-largest exporter, experienced a 5.56% contraction in exports.
China: $21.82 billion (up from $21.58 billion in 2023)
Bangladesh: $16.52 billion (up from $16.28 billion in 2023)
Turkey: $8.59 billion (down from $9.10 billion in 2023)
Post-Pandemic Recovery and War-Induced Challenges
Bangladeshi garment exports surged after the pandemic, but the Russia-Ukraine war disrupted this trend. High inflation in Europe caused living costs to rise, leading to reduced spending on clothing. However, inflation is stabilizing, and the market is showing signs of recovery. Despite this, domestic challenges such as high fuel prices and political instability have tested Bangladesh's resilience.
Missed Opportunities in European Markets
Industry leaders believe Bangladesh could have achieved greater success in Europe, given its garment industry's strengths and duty-free advantages. Mohiuddin Rubel, a former director of BGMEA, noted that Bangladesh's growth in Europe is modest compared to the typical 10-12% growth rate.
“Despite duty-free access, we’re not performing as expected. Europe should naturally remain our top market, but other countries are taking larger shares,” Rubel remarked.
Low-Priced Orders: A Competitive Necessity
Bangladesh is accepting lower-priced orders to stay competitive and fully utilize its production capacity. Rubel explained, “Global demand has dropped, and competition has increased. Our capacity remains unchanged, but buyers are importing less. In a free market, they aim to buy at the lowest price, and we’ve had to comply.”
This strategy has slightly constrained export income growth. However, industry stakeholders see this as a necessary measure to adapt to market realities.
Preparing for Future Challenges
Rubel stressed the importance of enhancing efficiency, reducing costs, and boosting productivity to sustain profitability. He emphasized that merely pressuring buyers for higher prices isn’t a long-term solution. Instead, maintaining an ethical pricing standard and improving operational efficiency are critical.
Vietnam: A Growing Competitor
Vietnam, a significant rival, ranks sixth in Europe for garment exports. From January to October 2024, Vietnam achieved a growth rate of 3.31%, nearly double Bangladesh’s growth. However, Bangladesh’s total export volume of $16.52 billion far exceeds Vietnam’s $3.5 billion.
This disparity highlights the need for Bangladesh to remain vigilant, optimize efficiency, and sustain its position as a leading garment exporter to Europe.
Vegetable Prices Down While Rice, Chicken Prices Soar; Soybean Oil Crisis Persists
The vegetable market has shown some relief for the past two weeks as increased supply has brought prices down. However, rising rice, fish, chicken, and oil prices have disappointed consumers.
Vegetable Prices Down
This information was revealed during a visit to several markets in Dhaka, including Karwan Bazar and Mohammadpur Agricultural Market, on Friday (December 27).
Traders attribute the price drop to a reduction in political group extortion during transportation and less disruption in the markets. If this trend continues, prices may decrease further.
Rokon, a vegetable vendor at Karwan Bazar, said, "Supply has increased compared to before. Over the past week, prices of some vegetables have dropped by up to Tk10 per kg. If supply remains steady, prices will drop further."
Current market prices:
Eggplant: 50–60 BDT/kg
Bitter Gourd: 70 BDT/kg
Okra: 50 BDT/kg
String Beans: 60 BDT/kg
Radish: 20–30 BDT/kg
Stem Amaranth (Loti): 60 BDT/kg
Snake Gourd (Chichinga): 50 BDT/kg
Pointed Gourd (Potol): 35–40 BDT/kg
Other vegetable prices include:
Papaya: 30–40 BDT/kg
Carrots: 40–50 BDT/kg
Cucumbers: 50 BDT/kg
Tomatoes: 120–130 BDT/kg
Flat Beans (Shim): 40–50 BDT/kg
Turnips: 25–30 BDT/kg
Cabbage: 40–50 BDT per piece
Bottle Gourd: 50–60 BDT each
Besides this, coriander leaves are being sold at 30 BDT per kg, onion flowers at 30-40 BDT, new potatoes at 50 BDT, and old potatoes at 60 BDT per kilogram. Depending on the quality, each cauliflower is priced at 40 BDT, cabbage at 40-50 BDT, and gourds are sold for 50-60 BDT each.
The price of green chillies has also decreased. They are being sold at 50-80 BDT per kilogram, while the wholesale price is 40-60 BDT. Additionally, red spinach bundles are being sold for 10 BDT, jute leaves for 10-15 BDT, Malabar spinach for 30 BDT, bottle gourd leaves for 40 BDT, radish leaves for 10 BDT, stem amaranth for 10-15 BDT, water spinach for 10 BDT, and spinach for 15-20 BDT.
Onion Prices Fall
Prices of onions, especially the Murikata variety, have decreased due to increased supply. Last week, Murikata onions were 70–80 BDT/kg, but now they sell for 50–60 BDT/kg. Imported onions and older domestic varieties have also dropped by 30 BDT/kg.
Chicken Prices Rise Again
Despite government-imposed price controls in September, chicken prices have surged since mid-December. Over the past two weeks, prices have increased by 30–40 BDT/kg.
Current chicken prices:
Broiler Chicken: 200–220 BDT/kg
Sonali Chicken: 320–350 BDT/kg
Desi Chicken: 550–600 BDT/kg
White Layer Chicken: 230-240 BDT/kg
Red Layer Chicken: 280-300 BDT/kg
Ducks, depending on the breed: 550-650 BDT/per piece
Soybean Oil Crisis
Soybean oil prices rose by 8 BDT/litre on December 9, but even two weeks later, supply has not normalized. Retailers report that oil companies are providing limited quantities, insufficient to meet consumer demand.
Unstable Rice Market
Despite the ongoing Aman harvest season, rice prices remain high. Over the past two weeks, prices for fine rice have increased by 4–8 BDT/kg, while medium and coarse rice have risen by 2–3 BDT/kg.
Current rice prices:
Miniket: 74–78 BDT/kg
Atash: 60–62 BDT/kg
Coarse Swarna: 52–56 BDT/kg
Nazirshail: 76–85 BDT/kg
There is no relief in the fish market either, as fish continues to be sold at previously increased prices. Currently, per-kg prices are as follows:
Rui: 380 to 450 BDT
Katla: 400 to 480 BDT
Farmed Shing: 550 BDT
Farmed Magur: 500 BDT
Farmed Koi: 240 to 280 BDT
Coral: 750 to 800 BDT
Tengra: 550 to 700 BDT
Farmed Pangas: 180 to 230 BDT
Tilapia: 180 to 220 BDT
Additionally, per kilogram prices for other fish are:
Boal: 750 to 800 BDT
Poa: 450 BDT
Pabda: 350 to 450 BDT
Aair: 850 to 900 BDT
Local Koi: 1,300 to 1,700 BDT
Shing: 1,400 to 1,500 BDT
Shol: 900 to 1,000 BDT
River Pangas: 900 to 1,200 BDT
Some fish varieties, like local Catfish (Shing) (1,400–1,500 BDT/kg) and Boal (750–800 BDT/kg), are priced beyond the reach of average consumers.
Traders blame insufficient supply and profiteering by unscrupulous businesses. Regular monitoring and action are needed to curb such practices.
