Economy
Global Entrepreneurs Can Now Trade in Commodity Exchanges
Chairman of the Bangladesh Securities and Exchange Commission (BSEC), Professor Shibli Rubayat-Ul-Islam, has announced swift intentions to establish a commodity exchange in Bangladesh, allowing not only local businesses but also entrepreneurs from South Africa and other nations to engage in trade. This significant initiative was revealed during the “Rise of Bengal Tiger: Bangladesh Trade and Business Summit” held in Johannesburg, South Africa, on Wednesday, August 23rd.
The summit, jointly organized by BSEC and the Bangladesh Investment Development Authority (BIDA), marks a strategic collaboration aiming to bolster investment prospects. The event commenced on Wednesday morning at 10:00 am local time in Johannesburg, with Prime Minister Sheikh Hasina gracing the occasion as the chief guest.
In a notable revelation during the “Rise of Bengal Tiger: Bangladesh Trade and Business Summit” in Johannesburg, South Africa, the Chairman of the Bangladesh Securities and Exchange Commission (BSEC), Professor Shibli Rubayat-Ul-Islam, highlighted the historic stance of Bangladesh’s founding father, Sheikh Mujibur Rahman, at the United Nations in 1974. The founder of the nation had advocated for unbiased representation, marking a pivotal step towards ending apartheid.
Over the past 15 years, bilateral trade between Bangladesh and South Africa has surged, reflecting growing economic ties between the two countries. However, despite this progress, there remains substantial room for further enhancement.
Professor Shibli Rubaiyat-ul-Islam emphasized that Bangladesh’s pivotal role in trade stems from its burgeoning population and increasing purchasing power. The country’s reduced production costs owing to abundant electricity supply offer an advantageous edge. The country’s stock market also hosts a multitude of promising companies, fostering a conducive environment for long-term investment. This scenario presents lucrative opportunities for South African businesses seeking expansion through these ventures.
Noteworthy attendees at the event included Dr. A.K. Abdul Momen, Minister of Foreign Affairs of Bangladesh; Sihle Zikalala, Minister of Public Works and Infrastructure of South Africa; Salman F Rahman, Private Industry and Investment Advisor to the Prime Minister; and Noor-e-Helal Saifur Rahman, Bangladesh’s High Commissioner to South Africa. The presence of these prominent figures underscored the significance of the summit in strengthening bilateral trade relations.
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.
