Economy
Forex Reserves Drop $1.3B in July Amid Turmoil
Bangladesh’s foreign exchange reserves saw a sharp decline of $1.3 billion (over Tk 15,000 crore) in July compared to the previous month, as per International Monetary Fund guidelines. This drop is attributed to diminished remittance inflows and export earnings amidst ongoing national unrest.
Data from Bangladesh Bank indicated that the forex reserves decreased from $21.78 billion on June 30 to $20.48 billion on July 31.
With the current bank exchange rate at Tk 118 per dollar, the $1.3 billion decrease translates to Tk 15,328 crore.
In May, reserves had plunged to $18.64 billion but rebounded to $21.78 billion in June following the receipt of $1.15 billion from the International Monetary Fund and $900 million in loans from other sources.
However, July witnessed a sharp fall in reserves due to declining remittance and export earnings amid the unrest and curfew, according to Bangladesh Bank officials.
Central bank data showed a 25 percent drop in remittance inflows to $1.9 billion in July, compared to $2.54 billion in June. In July 2023, the figure was $1.97 billion.
The government imposed a curfew starting at midnight on July 19 amid quota reform protests. Since July 16, more than 200 people have been killed, and several thousand injured in the protests.
An internet blackout beginning on July 18 further disrupted digital and mobile financial services, bankers reported.
The curfew was eased on July 24, allowing offices and banks to operate for limited hours, with all offices resuming normal schedules by July 31.
A partial restoration of broadband internet began on the evening of July 23, with mobile internet services fully restored by July 28.
Amid the nationwide unrest, the dollar rate soared to Tk 125 on the kerb market on July 31 and became scarce in money exchange houses by August 1.
As of July 31, the net foreign exchange reserve was $15.47 billion.
According to conventional valuation by Bangladesh Bank, reserves also fell from $26.81 billion on June 30 to $25.9 billion on July 31.
The exchange rate per dollar was Tk 84.81 in June 2021, Tk 93.45 in June 2022, and Tk 106 in June 2023.Bangladesh’s foreign exchange reserves saw a sharp decline of $1.3 billion (over Tk 15,000 crore) in July compared to the previous month, as per International Monetary Fund guidelines. This drop is attributed to diminished remittance inflows and export earnings amidst ongoing national unrest.
Data from Bangladesh Bank indicated that the forex reserves decreased from $21.78 billion on June 30 to $20.48 billion on July 31.
With the current bank exchange rate at Tk 118 per dollar, the $1.3 billion decrease translates to Tk 15,328 crore.
In May, reserves had plunged to $18.64 billion but rebounded to $21.78 billion in June following the receipt of $1.15 billion from the International Monetary Fund and $900 million in loans from other sources.
However, July witnessed a sharp fall in reserves due to declining remittance and export earnings amid the unrest and curfew, according to Bangladesh Bank officials.
Central bank data showed a 25 percent drop in remittance inflows to $1.9 billion in July, compared to $2.54 billion in June. In July 2023, the figure was $1.97 billion.
The government imposed a curfew starting at midnight on July 19 amid quota reform protests. Since July 16, more than 200 people have been killed, and several thousand injured in the protests.
An internet blackout beginning on July 18 further disrupted digital and mobile financial services, bankers reported.
The curfew was eased on July 24, allowing offices and banks to operate for limited hours, with all offices resuming normal schedules by July 31.
A partial restoration of broadband internet began on the evening of July 23, with mobile internet services fully restored by July 28.
Amid the nationwide unrest, the dollar rate soared to Tk 125 on the kerb market on July 31 and became scarce in money exchange houses by August 1.
As of July 31, the net foreign exchange reserve was $15.47 billion.
According to conventional valuation by Bangladesh Bank, reserves also fell from $26.81 billion on June 30 to $25.9 billion on July 31.
The exchange rate per dollar was Tk 84.81 in June 2021, Tk 93.45 in June 2022, and Tk 106 in June 2023.
Economy
UN General Assembly Adopts Resolution Backing ICJ’s Ruling on Israel’s Occupation of Palestinian Territories
The United Nations General Assembly, during its 10th Emergency Special Session, adopted a landmark resolution endorsing the International Court of Justice’s (ICJ) advisory opinion, which declared Israel’s occupation of the Palestinian territories as illegal under international law. The resolution, initiated by Palestine, garnered the co-sponsorship of 53 countries, including Bangladesh, as per a statement received today.
The resolution was passed on Wednesday through a vote, with 124 countries in favor, 14 against, and 43 abstaining. Bangladesh, as a co-sponsor, voted in favor of the resolution.
During the debate at the General Assembly, Bangladesh’s Permanent Representative to the UN, Ambassador Muhammad Abdul Muhith, delivered the nation’s statement. Muhith praised the ICJ’s advisory opinion, describing it as historic, and urged all member states to comply with the ruling. He also expressed deep concern over the ongoing violence and high civilian casualties in Gaza, calling for an immediate ceasefire, referencing UN Security Council resolution 2728.
Ambassador Muhith emphasized that a two-state solution, based on the pre-1967 borders of Palestine, is the only viable path to achieving lasting peace in the Middle East. He commended the roles played by the ICJ and the International Criminal Court in holding Israel accountable for illegal occupation and atrocity crimes in the Occupied Palestinian Territories.
The permanent representative also acknowledged the efforts of the UN Secretary-General and the UN High Commissioner for Human Rights, who have addressed the severe humanitarian and human rights crisis unfolding in Gaza.
The resolution, in line with the ICJ’s recent verdict, calls on Israel to cease its illegal presence in Palestine, marking the first step toward ending its military campaign in Gaza. It further advocates for the creation of an international mechanism to provide reparations for damages, losses, or injuries resulting from Israel’s internationally wrongful actions in the Occupied Palestinian Territories.
Additionally, the resolution requests the UN Secretary-General to submit a report on the implementation of these directives. It also emphasizes the need for accountability regarding atrocity crimes committed by Israel, particularly in light of the Fourth Geneva Convention on the protection of civilians during conflict.
The General Assembly has also resolved to convene an international conference within the next year, aimed at finding a pathway to establishing an independent Palestinian state. This resolution is widely seen as a significant step toward resolving the Middle East crisis through the implementation of the two-state solution.
The government has decided to import 4 lakh tonnes of wheat and 2 lakh tonnes of rice in a proactive move to secure the nation’s food supply. The decision was approved by the Cabinet Committee on Economic Affairs during a meeting held on Wednesday, September 18, 2024, chaired by Finance and Commerce Adviser Dr Salehuddin Ahmed.
This import initiative will take place within 15 days of tender submissions through government-to-government (G2G) arrangements, aimed at swiftly addressing potential food shortages.
While the current food grain stock is stable, Dr Salehuddin emphasized that the import decision is a preventive measure. “Although immediate imports aren’t necessary at this moment, we aim to eliminate any risk of food shortages and assure the public that both food grains and fertilisers will remain available,” he stated.
Regarding pricing, a provisional rate for the food grains has been established, but final prices will be confirmed prior to import execution.
The committee also approved reducing the timeline for international tenders for rice and wheat imports from 42 days to 15 days, starting from the tender advertisement date. This adjustment is expected to expedite the import process and maintain a steady supply chain.
Moreover, the government has greenlit the G2G procurement of rice and shortened procurement procedures as per Rule 83 of the Public Procurement Rules 2008. Both international open tenders and G2G agreements will be used to uphold food security and ensure effective distribution.
For the fiscal year 2024-25, the government aims to collect 3.5 lakh tonnes of rice from international sources and 19.23 lakh tonnes from domestic producers. The wheat target stands at 7 lakh tonnes from international markets and 10,000 tonnes locally.
Prime Minister Narendra Modi is not expected to meet Bangladesh interim government chief Muhammad Yunus on the margins of the United Nations General Assembly next week, people familiar with the matter said on Wednesday.
Earlier this month, the Bangladesh side made a formal request for a meeting on the sidelines of the General Assembly, which both leaders are set to attend. Dhaka was keen on a meeting in the hope it would help clear the air over irritants that have emerged in bilateral ties since the fall of the Sheikh Hasina government, the people said on condition of anonymity.
The people said such a meeting is not part of the Indian side’s agenda. Besides, Modi will have a packed schedule for his three-day visit to the US, as he is set to attend the Quad Leaders’ Summit in Wilmington, Delaware, on September 21 and address the Summit of the Future at the UN General Assembly on September 23.
“The PM is expected to have some bilateral meetings on the sidelines of the General Assembly in New York but a meeting with the head of Bangladesh’s interim government isn’t on the schedule,” one of the people cited above said.
Besides scheduling issues, comments by Yunus on India-Bangladesh relations in a recent interview and near-daily remarks by members of the interim government in Dhaka perceived as critical of India have not gone down well in New Delhi.
In the interview, Yunus criticised former premier Sheikh Hasina for commenting on developments in Bangladesh while in exile in India. He suggested Bangladesh could seek her extradition and said India should move beyond the “narrative” that every political party other than Hasina’s Awami League is “Islamist”.
Other members of the interim government, including de facto foreign minister Touhid Hossain, have repeatedly raked up the possibility of seeking the extradition of Hasina, who fled to India after stepping down on August 5. Hossain also acknowledged any such move would create an “embarrassing situation for the Indian government”.
India’s leadership has said Hasina was granted approval to come to the country at short notice. Hasina has been largely incommunicado while in India, where she is at an undisclosed safe location. The external affairs ministry has refused to be drawn out on any possible Bangladeshi request for her extradition, describing it as a hypothetical matter.
The people cited above said a meeting between Modi and former US president Donald Trump too was not part of the Indian side’s agenda though an encounter between the two leaders in New York could not be ruled out.
Trump said at a campaign event in Flint, Michigan, on Tuesday that he will meet Modi next week but gave no details on where the meeting would be held. Trump also said India was a “very big abuser” of the US-India trade relationship. Some other world leaders who visited the US in recent months for meetings with President Joe Biden and other multilateral events have met Trump as well.
