Economy
Argentine FM arrives in Dhaka to reopen embassay & deepen ties
Argentina’s Minister of Foreign Affairs, International Trade and Worship Santiago Andrés Cafiero arrived in Dhaka at the morning (27 February) to inaugurate the South American country’s new embassy here and deepen trade and cultural relations.
Foreign Minister Dr. AK Abdul Momen received him at the VIP Lounge of Hazrat Shahjalal International Airport upon his arrival in Dhaka.
Argentina is reopening its embassy here after 45 years. State Minister for Foreign Affairs Md Shahriar Alam will join the Argentine foreign minister to inaugurate the Embassy of the Argentine Republic in Banani this afternoon.
The Argentine embassy in Dhaka was closed in 1978 by the military junta that ruled the country at the time. Diplomatic operations, such as visas in order to travel, have since been handled by the Argentine embassy in India.
Argentina says it is convenient to reopen the embassy in accordance with foreign policy guidelines based on “political, strategic and commercial” reasons. Apart from reopening the Argentine embassy in Dhaka, Cafiero is likely to meet Prime Minister Sheikh Hasina, and Commerce Minister Tipu Munshi.
“There is also the possibility of signing visa exemption agreements on diplomatic and official passports, MoUs on cooperation in agriculture and diplomatic training academies of the two countries,” Ministry of Foreign Affairs Spokesperson Seheli Sabrin told reporters. The two countries are working on a memorandum of understanding on football related matters as well, she said.
Apart from the import of soybean oil and wheat from Argentina, the two sides are likely to discuss Bangladesh’s inclusion in South America’s powerful economic alliance Mercosur. Mercosur, or the Southern Common Market, is an economic and political bloc originally comprising Argentina, Brazil, Paraguay, and Uruguay.
The Argentine visiting team is likely to enjoy a friendly match between two teams comprising Bangladesh’s junior footballers as well as meeting with football officials.
During the eleventh month of the current fiscal year, the country’s foreign currency reserves have fallen below $19 billion for the first time. After paying off some import bills, the reserves have now stood at $18.26 billion on Sunday.
According to the International Monetary Fund (IMF), as of May 8, the total foreign currency reserves of the country were $19.82 billion.
Mohammad Mezbauul Haque, the spokesperson of Bangladesh Bank, informed that through the Asian Clearing Union (ACU), the central bank has paid off import bills totaling $1.63 billion over the past two months.
However, Bangladesh Bank maintains that after paying off the import bills, the foreign currency reserves now stand at $23.71 billion.
According to the Central Bank’s accounts, the reserves were $25.27 billion on May 8.
The Dhaka Stock Exchange (DSE) and the DSE Brokers Association (DBA) have expressed gratitude towards Prime Minister Sheikh Hasina for her directive to list government companies in the capital market, a move hailed as timely and positive.
The directive was issued during the recent meeting of the Executive Committee of the National Economic Council (Ecnec) last Thursday.
Dr. Hafiz Muhammad Hasan Babu, Chairman of DSE, described the directive as a significant step towards enhancing the dynamics of the capital market. He emphasized that besides invigorating the capital market, this move would also attract foreign investment and promote sustainable development.
Despite previous efforts, government institutions had not been listed in the stock exchange, according to a notification issued by the DSE. The Prime Minister’s directive is seen as a pivotal step towards revitalizing and expanding the economy.
Dr. Babu further remarked, “The listing of reputable companies in the capital market, as directed by the Prime Minister, will greatly benefit the country’s economy. It will also enhance investor confidence.”
Similarly, the DBA released a notification applauding the Prime Minister’s directive, terming it as positive and timely for the capital market.
Saiful Islam, President of DBA, expressed optimism about the directive’s potential to accelerate the country’s capital market and overall economy. He pledged support to relevant government departments and regulatory bodies in implementing the directive, ensuring its positive impact on the economy, including the capital market.
India has expressed interest in financing Bangladesh’s Teesta project, announced Foreign Minister Hasan Mahmud. Speaking to reporters after a meeting with Indian Foreign Secretary Vinay Mohan Kwatra, Mahmud stressed the importance of aligning the project with Bangladesh’s needs. He confirmed discussions on the Teesta issue during the meeting. Mahmud also affirmed Prime Minister Sheikh Hasina’s upcoming visit to New Delhi, indicating that the finalization of the date would depend on the formation of the new Indian government following ongoing elections.
Meanwhile, the IMF has approved a $1.15 billion staff-level loan for Bangladesh in its third tranche. Mahmud noted the ongoing elections in India and the subsequent formation of the new government as factors influencing the scheduling of PM Hasina’s visit.
When asked about the sequence of visits to India and China, Mahmud suggested Delhi’s geographical proximity to Bangladesh. Diplomatic sources suggest PM Hasina’s visit to India is planned for early July, following India’s elections.
Pre-election surveys indicate strong prospects for Indian Prime Minister Narendra Modi’s re-election. Modi previously congratulated PM Hasina on her electoral victory in January, expressing optimism about strengthening ties between the two nations.
The last bilateral engagement between the prime ministers occurred during the G-20 Leaders Summit in September 2023. Modi is expected to invite South Asian and BIMSTEC leaders to his swearing-in ceremony, fostering regional cooperation.
Addressing border killings, Mahmud emphasized the government’s commitment to ending such incidents and promoting the use of non-lethal weapons by border forces. Discussions also covered enhancing physical and people-to-people connectivity, including cooperation with India to import hydropower from Nepal and Bhutan through India. Mahmud highlighted the need to further ease visa restrictions to strengthen people-to-people relations.
