Connect with us

Economy

Bangladesh Eyes Record Remittance in May

Published

on

bangladesh remittance

Bangladesh is on track to receive a record-high remittance in May, thanks largely to the depreciation of the local currency against the US dollar, central bankers say, expressing optimism despite concerns over foreign exchange reserves.

The country, grappling with multiple economic challenges and a persistent shortage of foreign currencies, has already received $2.143 billion in the first 29 days of May. This amount marks a 38-percent increase compared to the same period last year when remittance stood at $1.553 billion.

The remittance received in these 29 days is also higher than the totals for the previous two months, with April at $2.044 billion and March at $1.997 billion. The Bangladesh Bank is hopeful that the total inflow for May will set a new record once the earnings from the remaining two days (May 30 and May 31) are added.

“The monthly remittance will set a new record of earning in recent years once the earnings of the remaining two days are added up,” said a source from the Bangladesh Bank.

As of May 29, the total remittance earnings for the fiscal year 2024 have reached $21.261 billion, which is more than 95 percent of the $21.61 billion earned in the entire fiscal year 2023.

A Bangladesh Bank official, speaking anonymously, noted that remitters usually send more money ahead of religious festivals like Eid. However, the recent 5.98-percent devaluation of the Bangladeshi taka against the US dollar likely encouraged more transfers ahead of Eid-ul-Azha.

“I think the May remittance inflow would set a new record in recent years, which would be a great relief under the current macroeconomic context,” the central banker added.

The country’s rapidly depleting foreign exchange reserves have become a serious concern for the $460 billion-plus economy. Bangladesh faces difficulties in meeting the net international reserves (NIR) target set by the International Monetary Fund (IMF) as part of a $4.7-billion lending package aimed at restoring macroeconomic stability.

On May 8, the central bank’s monetary policy committee (MPC) made a significant decision to raise the exchange rate to Tk 117 from Tk 110 to stabilize the forex market. This revision caused the local currency to depreciate by 5.98 percent per dollar, allowing dollar holders to gain more from their foreign currencies.

As of May 29, Bangladesh’s gross foreign exchange reserves stood at $24.22 billion, according to the Bangladesh Bank. However, the IMF, using a different methodology (BPM6), reports the reserves at $18.72 billion for the same date.

Share this

Economy

CA pays tribute at Armed Forces Division

By

Published

on

Armed Forces Division

Chief Adviser Prof Muhammad Yunus on Thursday paid tribute to the Armed Forces Division by placing a floral wreath at its headquarters.

Prof Yunus, who visited the division as part of his official duties, laid the wreath to honor the sacrifices and dedication of the members of the Armed Forces.

Following the wreath-laying ceremony, he signed the visitor’s book.

Share this
Continue Reading

Economy

CEC, Four Election Commissioners Resign Amid Political Tensions

Published

on

cec election

Chief Election Commissioner (CEC) Kazi Habibul Awal, along with four other election commissioners, announced their resignation during a press conference today at the Election Commission (EC) building. The resignation follows growing speculation and pressure.

CEC Awal stated, “In this changed situation, I and other commissioners have decided to step down. We’re handing over our resignation letters to the EC Secretary to send it to the President.” After submitting the letters, the CEC and some commissioners quickly left the premises, with no clear explanation for the absence of two election commissioners.

The resignations come amid increasing unrest tied to the registration of political parties such as Nagarik Oikya and Gono Odhikar Parishad. Sources revealed the CEC felt unsafe due to aggressive behavior from activists, prompting the decision to step down.

Protesters outside the EC building hurled shoes at vehicles carrying Election Commissioners Rashida Sultana, Md Alamgir, and Anisur Rahman as they left. Meanwhile, preparations for their exit had already been underway, with the commissioners reportedly relocating personal belongings from their offices.

The commission, appointed in February 2022 for a five-year term, had previously expressed confusion over demands for their resignation, maintaining they had conducted fair elections. However, internal discussions led to the collective decision to resign earlier than expected.

Share this
Continue Reading

Economy

Govt to purchase LNG from 23 listed companies in int’l spot market through open tender

By

Published

on

russia lng

The government will now purchase LNG from the international spot market through open tender instead of negotiation.

Cabinet Committee on Economic Affairs (CCEA) in a meeting on Wednesday in principle approved a proposal in this regard.

Adviser of the interim government for Finance Dr. Salehuddin Ahmed, who presided over the meeting, said that the government will procure LNG through open tender.

The Energy and Mineral Division of the Ministry of Power, Energy and Mineral Resources placed the proposal where it sought approval to import LNG from 23 listed companies in the international spot market.

The adviser said that though such 23 companies were enlisted by the previous Awami League government and signed Master Sales and Purchase Agreement, they will remain unchanged.

He said that instead of applying the Speedy Increase of Energy and Power Supply (Special) Act 2010, the interim government will follow the Public Procurement Rules 2008 to ensure the competitive bidding process.

“We don’t want to change them as we wanted to import LNG quickly, ensuring proper competition among the suppliers,” he told reporters.

Committee also approved another proposal in principle to sign a contract to import urea fertiliser for the 2024-25 fiscal year from Fertiglobe Distribution Limited, UAE, on a G-to-G basis.
Meanwhile, the Cabinet Committee on Government Procurement (CCGP) in a meeting, presided over by the Adviser for Finance, approved 3 proposals for import of lentil and fertiliser.

As per the proposal, the Trading Corporation of Bangladesh will procure 10,000 metric tons (MT) of lentil from local firm Sahara Enterprise at a cost of Tk 98.20 crore with each kg priced at Tk 98.20.

The Commerce Ministry which moved the proposal on behalf of the TCB in the meeting mentioned in the proposal that the supplier firm was selected through open tender.

The CCGP approved two separate proposals of the Industries Ministry under which Bangladesh Chemical Industries Corporation will import 30,000 MT of bulk granular urea fertiliser from Fertiglobe Distribution Limited, UAE, under state to state contract at a cost of Tk 121.48 crore.

Each metric ton of fertiliser will cost $343.17.

Another 30,000 MT of bagged granular urea fertiliser will be procured from the local Karnaphuli Fertilizer Company Limited (Kafco) at a cost of Tk 116.99 crore with each metric ton costing $330.50.

Share this
Continue Reading