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Bangladeshi Banks Plan India Rupee Transactions as Reserves Fall

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Two Bangladeshi banks including the largest state-owned lender plan to introduce trade transactions in Indian rupees, officials said, as the South Asian nation looks to build up its shrinking foreign exchange reserves.

Until now, Bangladesh has only carried out trade transactions in dollars.

State-owned Sonali Bank and Eastern Bank have opened “nostro” accounts in rupees with State Bank of India (SBI.NS) and ICICI Bank (ICBK.NS), officials from both banks said.

A nostro account refers to an account a bank holds abroad at another bank in the currency of that jurisdiction. Such accounts are used for international trade and to settle other foreign exchange transactions.

“This is just the beginning. More banks will join us in the coming days. It will ease pressure on the foreign reserves,” Afzal Karim, managing director of Sonali Bank, told International News Media.

The exchange rate mechanism will be decided on a cross-currency basis by individual banks and a formal announcement will be made on July 11, said Ali Reza Iftekhar, managing director of Eastern Bank.

“The use of the Indian Rupee in India-Bangladesh trade provides a convenient and cost-effective mechanism for conducting cross-border transactions, contributing to the strengthening of economic ties between the two nations,” Iftekhar said.

India is Bangladesh’s second-largest source of imports after China, with Dhaka’s exports to India standing at $2 billion in the year to June 2022 while Bangladesh’s imports from India were $13.69 billion.

Bangladesh is struggling to pay for imported fuel because of a dollar shortage. Its dollar reserves have shrunk by more than a third since Russia’s February 2022 invasion of Ukraine to stand at a seven-year low of $31.60 billion.

The value of Bangladesh’s taka currency fell by over a sixth during the 12 months through May.

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China’s Guangxi Inaugurates Communication Centre to Deepen ASEAN Relations

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In a move aimed at enhancing global communication and cooperation with ASEAN, the Guangxi International Communication Centre was inaugurated on September 6 in Nanning. This initiative is under the leadership of the Publicity Department of the Party Committee of the Guangxi Zhuang Autonomous Region and is spearheaded by Guangxi Daily in collaboration with Guangxi Radio and Television.

Chen Yijun, a member of the Standing Committee of the Party Committee of Guangxi Zhuang Autonomous Region, along with other key figures including Liu Weiling, Deputy Editor-in-Chief of China Daily, and Yu Yunquan, Deputy Director of China Foreign Languages Administration, were present. Delegates from ASEAN nations, as well as leaders from media houses in Cambodia, Laos, Vietnam, Hong Kong, and Macao, also attended the event.

Guangxi serves as a critical gateway for China’s outreach to ASEAN countries, leveraging its geographic proximity and cultural ties to strengthen mutual exchanges. Over recent years, Guangxi has built a reputation for its active role in fostering media collaborations with ASEAN countries, sharing stories of friendship, and facilitating people-to-people and cultural connections between China and its neighbors.

Liu Weiling highlighted China Daily’s collaboration with Guangxi to establish a comprehensive, diversified cooperation model. This model seeks to highlight Guangxi’s strategic significance in the Guangdong-Hong Kong-Macao Greater Bay Area while also showcasing the region’s role in building a China-ASEAN community of shared destiny and a China-Vietnam strategic community.

Yu Yunquan emphasized that Guangxi’s geographical advantages and cultural richness make it uniquely positioned for international communication. He stressed that Guangxi’s role would be instrumental in deepening international cooperation and enhancing mutual understanding, as the region continues to develop its international communication infrastructure.

Zhang Lei from China News Service spoke about the partnership between his organization and Guangxi to amplify the region’s achievements in economic and social development. The goal is to present Guangxi to the international community through accurate and engaging stories that reflect its progress and ambitions in high-quality development.

Akha Ongmenca, Director of Lao National Television, praised the long-standing partnership between Laos and Guangxi in the media sector. He expressed optimism about continuing this cooperation, focusing on innovation and achieving even greater results in the future.

Xu Bo, President of Guangxi Daily, outlined the efforts to establish a multi-dimensional communication platform through “Hello Guangxi,” which includes a website, client channel, and social media accounts. The aim is to create a unified and effective communication network that promotes Guangxi’s image internationally while telling China’s stories from a localized perspective.

At the event, several strategic agreements were signed, including one between the Publicity Department of Guangxi and China Daily and China News Service. These agreements, alongside new collaborations with foreign media, aim to expand Guangxi’s influence on the global stage.

Among the initiatives announced were plans for the 2024 Chinese and Foreign Media Tour, aimed at promoting the Land and Sea New Corridor in the West, a key part of China’s Belt and Road Initiative. This project is seen as critical to the development of China’s southwest region. Additionally, cultural exchange activities like “Meeting Lovely China and Magnificent Guangxi” will further promote mutual learning and cultural ties between China and ASEAN.

The launch of the Guangxi International Communication Centre marks a significant step in promoting China-ASEAN cooperation through media and cultural diplomacy, with a focus on fostering mutual understanding and deepening regional ties.

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Turkey’s Erdogan calls for Islamic alliance against Israel

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Turkish President Tayyip Erdogan said on Saturday Islamic countries should form an alliance against what he called “the growing threat of expansionism” from Israel, drawing a rebuke from the Israeli foreign minister.

He made the comment after describing what Palestinian and Turkish officials said was the killing by Israeli troops of a Turkish-American woman taking part in a protest on Friday against settlement expansion in the Israeli-occupied West Bank.

“The only step that will stop Israeli arrogance, Israeli banditry, and Israeli state terrorism is the alliance of Islamic countries,” Erdogan said at an Islamic schools’ association event near Istanbul.

He said recent steps that Turkey has taken to improve ties with Egypt and Syria are aimed at “forming a line of solidarity against the growing threat of expansionism,” which he said also threatened Lebanon and Syria.

Israeli Foreign Minister Israel Katz said in a statement that Erdogan’s remark was “a dangerous lie and incitement,” and that the Turkish leader has been working for years with Iran to undermine the region’s moderate Arab regimes.

Erdogan hosted Egyptian President Abdel Fattah al-Sisi in Ankara this week and they discussed the Gaza war and ways to further repair their long-frozen ties during what was the first such presidential visit in 12 years.

Ties between them started thawing in 2020 when Turkey began diplomatic efforts to ease tensions with estranged regional rivals, including the United Arab Emirates and Saudi Arabia.

Erdogan said in July that Turkey would extend an invitation to Syrian President Bashar al-Assad “any time” for possible talks to restore relations between the two neighbours, who severed ties in 2011 after the outbreak of the Syrian civil war.

Israel’s military said after Friday’s incident that it was looking into reports that a female foreign national “was killed as a result of shots fired in the area. The details of the incident and the circumstances in which she was hit are under review.”

There was no immediate comment on Friday’s incident fromIsraeli Prime Minister Benjamin Netanyahu’s office.

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7-Eleven owner rejects initial takeover bid from Canadian rival

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The Japanese owner of 7-Eleven said Friday it had rejected a takeover bid from Canadian retail giant Alimentation Couche-Tard, saying the proposal “grossly undervalues” the company.

The proposed purchase of Seven & i Holdings would be the biggest ever foreign takeover of a Japanese firm and combine 7-Eleven, Circle K and other brands across Asia, North America and Europe.

As the world’s biggest convenience store chain, 7-Eleven operates more than 85,000 outlets globally.

Although the brand began in the United States, since 2005 it has been wholly owned by Seven & i.

A letter from the Seven & i board to Alimentation Couche-Tard (ACT) said it was open to “engaging in sincere discussions should you put forth a proposal that fully recognises our standalone intrinsic value”.

“We do not believe, for several critical reasons, that the proposal you have put forward provides a basis for us to engage in substantive discussions regarding a potential transaction,” it said.

ACT operates more than 16,700 outlets in 31 countries and territories.

Its purchase of Seven & i would be the biggest ever foreign takeover of a Japanese firm and create an international convenience store behemoth combining 7-Eleven, Circle K and other brands across Asia, North America and Europe.

Seven & i said ACT had offered $14.86 per share in cash, which roughly matches its market value of $39 billion.

But the board’s letter called the proposal “opportunistically timed” and said it “grossly undervalues our standalone path and the additional actionable avenues we see to realise and unlock shareholder value”.

It also raised regulatory concerns.

“Your proposal does not adequately acknowledge the multiple and significant challenges such a transaction would face from US competition law enforcement agencies,” it said.

A quarter of 7-Eleven stores are found in Japan where they are a beloved institution, selling everything from concert tickets to pet food and fresh rice balls.

Seven & i Holdings’ other businesses include a major supermarket operator, restaurant chain Denny’s, and Tower Records — a once-popular US record store that went bankrupt.

Seven & i has reportedly asked the Japanese government to designate parts of the company as “core”, which would make a takeover more difficult.

Brands with the “core” rating in Japan include manufacturers in the nuclear, space, rare earths and chip industries, as well as cybersecurity and infrastructure operators.

The Canadian firm, however, is confident that it can have its way.

CEO Brian Hannasch told an earnings briefing in New York on Thursday that Couche-Tard could “even consider a higher leverage if needed”, indicating it has the capacity to raise more funds, according to Nikkei Asia.

“We have the solid and robust balance sheet,” Nikkei quoted Hannasch as saying.

Shares in Seven & i were down 1.9 percent in Tokyo on Friday.

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