Economy
Dollar Exchange Rate for Repatriated Export Income Surge to Tk107.5
The Bangladesh Foreign Exchange Dealers Association (BAFEDA) and Association of Bankers Bangladesh (ABB) have increased the exchange rate of the US dollar for repatriated export income by Tk 0.5, bringing it to Tk 107.5 per dollar. This decision was made during a meeting held on Monday, where top bank executives involved in foreign exchange transactions gathered. Since September 2022, a joint committee comprising BAFEDA and ABB has been responsible for determining the exchange rate between the taka and the US dollar, which is the world’s reserve currency. Although the intention was to establish a floating exchange rate, the system has not operated as planned.
Economists have criticized the existence of multiple exchange rates and have advocated for a single, unified exchange rate. However, the BAFEDA-ABB committee has yet to address this demand. Following the recent announcement, exporters will receive Tk 107.5 in local currency for each dollar earned through exports. In contrast, the exchange rate for expatriate income (remittances) remains unchanged at Tk 108.5. Additionally, the maximum interbank rate will continue to be Tk 109 per US dollar.
The country has been facing a dollar crisis since March of the previous year, primarily triggered by the Russia-Ukraine conflict. In an attempt to tackle the crisis, Bangladesh Bank initially fixed the exchange rate. However, this approach exacerbated the situation. In September of last year, Bangladesh Bank officially relinquished its responsibility for determining the exchange rate, transferring it to ABB and BAFEDA in consultation with the central bank. Since then, these two organizations have been collaboratively determining the dollar price for export and repatriation income, as well as import liabilities. Essentially, they are implementing decisions made by Bangladesh Bank.
The adjustment in the exchange rate for repatriated export income reflects ongoing efforts to address the dollar crisis in Bangladesh. The decision made by BAFEDA and ABB will impact exporters, who will now receive Tk 107.5 for each dollar earned through exports. While the move towards a floating exchange rate has encountered challenges, economists continue to advocate for a single, unified exchange rate to promote stability and transparency in foreign exchange transactions. The joint committee comprising BAFEDA and ABB plays a pivotal role in determining the exchange rate, working closely with Bangladesh Bank to address the complex dynamics of the country’s foreign exchange market.
Bangladesh is eager to strengthen its bilateral relations with South Korea, particularly in the realms of trade and investment, in pursuit of realizing the dream of achieving a ‘Golden Bengal,’ as envisioned by the Father of the Nation, Bangabandhu Sheikh Mujibur Rahman.
State Minister for Foreign Affairs, Md Shahriar Alam, expressed this commitment as the chief guest at a reception commemorating South Korea’s National Foundation Day. The reception, hosted by South Korean Ambassador to Bangladesh Park Young-Sik, took place at a city hotel on Sunday evening.
During his speech, Minister Alam conveyed Dhaka’s contentment with the consistent growth in bilateral trade and investment between Bangladesh and South Korea. He highlighted the 50-year history of robust bilateral relations and expressed optimism about elevating this friendship to a deeper and more comprehensive level of collaboration.
Furthermore, Minister Alam referenced the recent meeting between Prime Minister Sheikh Hasina and President Yoon Suk Yeol on the sidelines of the G20 Leaders Summit in India, underlining the significance of such high-level engagements.
He reiterated Prime Minister Sheikh Hasina’s vision of establishing a knowledge and technology-based prosperous and intelligent Bangladesh by the year 2041.
Minister Alam also expressed gratitude for South Korea’s prompt recognition of Bangladesh as an independent state shortly after its independence on May 12, 1972.
Economy
Vietnam’s National Assembly President Attends Forum in Dhaka for Economic Collaboration with Bangladesh
Vuong Dinh Hue, the President of the Vietnam National Assembly, recently participated in an event held in Dhaka known as the ‘Forum on Policies and Laws to Foster Economic, Trade, and Investment Collaboration between Vietnam and Bangladesh.’ This significant gathering was jointly organized by the Vietnamese Ministry of Industry and Trade, the Ministry of Planning and Investment, the Vietnamese Embassy in Bangladesh, and in cooperation with key entities including the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and the Vietnamese Business Association in Bangladesh.
The forum drew the presence of a distinguished high-level delegation from the Vietnamese National Assembly, alongside prominent figures from the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the Dhaka Chamber of Commerce and Industry (DCCI), and a substantial representation from businesses on both sides. Additionally, various ministries from both Vietnam and Bangladesh were represented.
During the forum, three notable business-to-business Memoranda of Understanding (MoUs) were inked. These agreements included collaboration between BMH Vietnam Company and Doreen Group Bangladesh, focusing on investment cooperation, technology transfer, and the advancement of pre-engineered steel production. Another agreement was reached between Bangladesh Vietnam Development Assistance Company and the Bangladesh Pharmaceutical Association, with a specific focus on pharmaceutical exchange. Lastly, Huong Giang Aviation Services and the Bangladesh Tourism Association came together to establish a tourism alliance, marking a significant step in enhancing tourism ties between the two nations.
As part of his official three-day tour, Vuong Dinh Hue visited the state-of-the-art facilities of Beximco Pharma in Tongi, where he received an informative presentation and toured the manufacturing facility.
Prime Minister Sheikh Hasina has reaffirmed her government’s unwavering commitment to implementing the Sustainable Development Goals (SDGs), even in the face of challenges posed by the Covid-19 pandemic, the Ukraine war, and the climate crisis. She made this declaration during a meeting with Helen Clark, Chair of the Partnership for Maternal, Newborn and Child Health (PMNCH), at the United Nations Headquarters.
As part of her commitment to healthcare services accessibility for all citizens, PM Sheikh Hasina mentioned the implementation of the National Health Sector Strategic Plan (2011-2030) and a 27% increase in healthcare sector allocations for the current fiscal year 2023-24.
Helen Clark commended Bangladesh’s exceptional progress in healthcare under Prime Minister Sheikh Hasina’s visionary leadership, citing the nation’s remarkable achievements in reducing maternal and child mortality rates and ensuring universal healthcare services.
