Bank-Insurance
BD recieved over Tk 16k crores remittance last Feb
Bangladesh received inward remittance of Tk 16k crores in February. Though the inward remittance flow decreased in February compared to January, the overall remittance flow rose in the first 8 months of the current fiscal year.
According to Bangladesh Bank (BB) in the first 8 months, Bangladesh received $14.01 billion in remittance, which is $574.86 million more than the same period of last fiscal year. In FY 2021-22, Bangladesh received $13.43 billion in remittances in the first 8 months.
The foreign exchange markets of Bangladesh are being stable thanks to remittance inflow, and the forex reserves of Bangladesh bank stood at $32.3 billion on March 1, 2023.
The expatriates, freelancers, and skilled professionals of Bangladeshi have contributed to the country by earning foreign exchange while the central bank struggling with LC liabilities to import essential commodities and industrial raw materials, the sector insiders say.
Bank authorities said many import payments are being deferred due to the dollar crisis. For this, dollars coming from expatriates are being bought at a higher price than the fixed rate.
As a result, expatriate income increased. If the price limit of the dollar is removed, the crisis will go away, they say.
Bangladesh Bank spokesperson Mesbaul Haque told to the news media that in order to increase remittance inflow, the central bank has increased the exchange rate of US dollars for remittance.
In addition to a 2.5 percent hassle-free incentive for remittance, several banks also provide additional incentives to attract foreign exchange, he said.
Banks will not cut any charge or fee for sending remittances through legal channels, he said.
Bangladesh Bank says that more than 40 percent of remittance of expatriate income is sent to the country through hundi.
In a joint decision, the Bangladesh Foreign Exchange Dealers Association (BAFEDA) and the Association of Bankers, Bangladesh (ABB) have announced a reduction of Tk 0.50 in both buying and selling rates for the dollar.
The new rates, effective from Thursday, November 23, set the purchasing price for dollars related to export proceeds and remittances at Tk 110, down from Tk 110.50. Simultaneously, the selling rate for dollars concerning import settlements has been adjusted to Tk 110.50, a decrease from the previous Tk 111. This decision, reached during a meeting in the city, comes as a revision to the rates set on October 31, when both organizations had increased the official rates for remittance and export proceeds.
Bank-Insurance
HSBC Bangladesh Hosts “Japan – Bangladesh Business Corridor” Event to Strengthen Ties
HSBC Bangladesh recently hosted a corridor event titled “Japan – Bangladesh Business Corridor: Legacy and the Future” to celebrate and strengthen the longstanding relationship between the two countries. The event brought together Japanese businesses operating in Bangladesh and various stakeholders.
Since Bangladesh’s independence, Japan has played a significant role as a bilateral development partner, contributing to trade, investment, infrastructure development, industrialization support, and social development improvements in the country. HSBC recognizes the importance of Japan’s contributions and untapped potential.
Gerard Haughey, Country Head of Wholesale Banking at HSBC Bangladesh, highlighted the evolving relationship between Japan and Bangladesh, particularly in terms of ongoing trade and investment engagements. He emphasized the opportunities for Japanese investors in Bangladesh’s rapid growth and stated that HSBC is ready to facilitate connections to a world of opportunities.
Hirotaka Shibata, Director of Commercial Banking at HSBC Japan, emphasized HSBC’s presence in Japan and its ability to provide “local” connections and knowledge to Japanese investors on both ends of the investment journey. He noted that HSBC Japan considers Bangladesh a priority corridor and is closely collaborating with HSBC Bangladesh to offer the best available services to clients.
HSBC, as a leading international bank, offers expertise in trade, payment, cash management, and project financing support services in Bangladesh. Its extensive presence in 62 countries makes it the preferred choice for foreign businesses, including Japanese stakeholders operating in Bangladesh. With its digital banking capabilities, HSBC has become the go-to bank for inbound Japanese companies, serving infrastructure and private sector investment clients and stakeholders.
The Asian Development Bank (ADB) is set to provide Bangladesh with $338 million in support of domestic vaccine production, aiming to safeguard against a range of diseases. This announcement was made during a meeting between ADB Country Director Edimon Ginting and Planning Minister MA Mannan in Dhaka.
The initiative is part of the Bangladeshi government’s effort to develop a draft project to manufacture vaccines locally, thereby enhancing protection against diseases like COVID-19 and dengue, as well as preparing for potential future health challenges. The ADB’s funding offer consists of a $338 million loan, with half of it carrying a low-interest rate and the remaining portion subject to regular interest.
The ADB is urging the government to expedite the approval of this important project. The Planning Minister assured that diligent efforts would be made to secure swift approval. The ADB Country Director shared that the past fiscal year saw substantial progress in terms of the working environment, disbursement, project implementation, and loan approval in Bangladesh.
The project’s total cost is approximately $351 million. It aims to reduce Bangladesh’s dependence on vaccine imports and bolster domestic production capabilities. The ADB Country Director highlighted that beyond the period of Least Developed Country (LDC) status, Bangladesh may face challenges in procuring vaccines at lower rates and instead may need to purchase them at market prices. To enhance the country’s capacity for vaccine production, this project has been initiated with the aim of swift approval.
Moreover, the ADB has committed $3.5 billion in financing to Bangladesh for the current fiscal year, with approximately $2 billion being concessional and the remaining $1.5 billion being regular funding.
