The Bangladesh Bank has reduced the Export Development Fund (EDF) by $400 million in May to increase net foreign exchange reserves, aligning with International Monetary Fund (IMF) conditions. The IMF recommended that Bangladesh raise its net reserves to over $24 billion by June, which is slightly below the required amount. Although the central bank does not disclose net reserves, it reported gross foreign exchange reserves of $29.87 billion as of 1st June. The EDF reduction has no impact on disclosed reserves, as it is included in gross reserves. The EDF size now stands at $4.6 billion, down from $7 billion after a series of cuts over six months.
To meet the IMF conditions, imports have been curtailed, but exports have not increased significantly, leaving limited alternatives to boost reserves. Bangladesh Bank officials anticipate that net reserves may fall below $24 billion by the end of June, suggesting further adjustments in the future. While the adjustment supports foreign exchange reserves, exporters express concerns about the impact on their operations, as reduced EDF outlay adds to existing challenges in the industry. The demand for EDF loans has declined alongside reduced imports and stricter measures by the central bank to encourage export proceeds. The establishment of the Exporters’ Fund with lower interest rates has also contributed to the decrease in EDF loan applications.
Bangladesh experienced a drop in overseas remittance in May. The remittance received during the month amounted to around USD 1.69 billion, reflecting a 10.27% decline compared to the previous year. April also saw a decrease of 16.26% in remittance compared to the corresponding period. This trend is concerning, as remittance is typically strong before Eid when expatriates send additional funds for their families’ expenses. However, even during the Eid month of April, remittance was not favorable.
Banks have raised the dollar price for remittance to Tk 108.50 per dollar based on advice from the central bank. Nevertheless, the dollar rate through informal channels remains around Tk 110, making it challenging for banks to attract funds at higher prices due to the risk of penalties. Efforts to encourage remittance through the banking system have not yielded satisfactory results, with fluctuations observed month-to-month. The ongoing dollar crisis continues to impact Bangladesh, prompting measures to stabilize the currency’s value and reduce pressure through increased exports and remittance.
Bangladesh’s inflation soared to a 10-year high of 9.94% in May, according to the Bangladesh Bureau of Statistics. The previous highest level was observed in August last year, with the Consumer Price Index surging to 9.52%. Both food and non-food inflation increased, with food inflation rising to 9.24% and non-food inflation reaching 9.96% in May. The country has been grappling with high inflation for over a year, aggravated by global supply chain disruptions caused by the Russia-Ukraine conflict and the ongoing impact of the COVID-19 pandemic. Factors such as increased import bills, energy shortages, a US dollar crisis, and market imperfections have also contributed to the persistent rise in consumer prices in Bangladesh.
Adani, an Indian power company, has encountered payment difficulties as the Power Development Board (PDB) in Bangladesh grapples with a shortage of dollars. Adani supplied 700-750 MW of electricity during the trial production period, totaling around 1.5 million units to PDB.
The company submitted a bill of approximately $17.5 million or Tk 187 crore, reflecting a unit price of Tk 12 (11.88 cents) for coal. However, PDB faced obstacles in opening a letter of credit (LC) due to a lack of dollars, with both local and foreign banks refusing to assist. Furthermore, Adani submitted additional bills after a month of commercial production, but the amount was undisclosed. PDB officials estimate that the bills, including the trial period, amount to over $100 million (Tk 1,087 crore) until May 2023. The electricity department is seeking special government approval to address the payment predicament.
Following the government’s approval of onion imports from India, onion prices experienced a significant decline in various regions of Bangladesh. The Trading Corporation of Bangladesh reported that the local variety of onion was being sold at Tk 80 to Tk 90 per kilogram on Monday, marking a Tk 10 decrease compared to the previous day. Over the past month, prices of the local onion variety had risen by 81%, leading the agriculture ministry to allow imports to stabilize the volatile market. However the Director General of the Directorate of National Consumers Rights Protection (DNCRP), claimed that a group of traders had manipulated the market for higher profits.
Farmers in Pabna, a major onion-producing area, accused wholesalers in Dhaka, Chattogram, and Sylhet of being responsible for the unstable onion market, asserting that they control wholesale prices and manipulate the market. The government aims to continue imports until the onion market stabilizes, with the goal of reducing prices to Tk 50 per kilogram. Wholesale traders in Dhaka, Pabna, and Chattogram reported a decrease in onion prices following the announcement of imports. The government has approved 210 import permits for 280,800 tonnes of onions. Despite domestic production being around 34 lakh tonnes, the country still needs to import around 6.50 lakh tonnes of onions due to storage limitations and waste.
Telecom operator Grameenphone has set an ambitious target to cut its carbon emissions by 50% before 2030, using 2019 emissions as a baseline. The company is actively implementing various initiatives to reduce its carbon footprint. These include enhancing energy efficiency, investing in renewable energy sources, fostering an energy-conscious culture, and collaborating with partners to minimize environmental impact, particularly in the supply chain.
Grameenphone has already converted approximately 1,200 towers into solar energy-powered sites in remote areas, such as Hatiya, ensuring connectivity in previously underserved regions. These hybrid sites not only save fuel but also contribute to reduced carbon dioxide emissions, demonstrating the company’s commitment to its environmental goals.
CEO highlighted the importance of this green shift, citing Bangladesh’s vulnerability to climate change and disasters. Deploying solar-powered towers enables Grameenphone to reduce its carbon footprint, overcome electricity supply challenges, and pave the way for a greener future. As a frontrunner in green initiatives in Bangladesh, the company remains dedicated to comprehensive sustainability efforts.
Adani, an Indian power company, has encountered payment difficulties as the Power Development Board (PDB) in Bangladesh grapples with a shortage of dollars. Adani supplied 700-750 MW of electricity during the trial production period, totaling around 1.5 million units to PDB.
The company submitted a bill of approximately $17.5 million or Tk 187 crore, reflecting a unit price of Tk 12 (11.88 cents) for coal. However, PDB faced obstacles in opening a letter of credit (LC) due to a lack of dollars, with both local and foreign banks refusing to assist. Furthermore, Adani submitted additional bills after a month of commercial production, but the amount was undisclosed. PDB officials estimate that the bills, including the trial period, amount to over $100 million (Tk 1,087 crore) until May 2023. The electricity department is seeking special government approval to address the payment predicament.
Telecom operator Grameenphone has set an ambitious target to cut its carbon emissions by 50% before 2030, using 2019 emissions as a baseline. The company is actively implementing various initiatives to reduce its carbon footprint. These include enhancing energy efficiency, investing in renewable energy sources, fostering an energy-conscious culture, and collaborating with partners to minimize environmental impact, particularly in the supply chain.
Grameenphone has already converted approximately 1,200 towers into solar energy-powered sites in remote areas, such as Hatiya, ensuring connectivity in previously underserved regions. These hybrid sites not only save fuel but also contribute to reduced carbon dioxide emissions, demonstrating the company’s commitment to its environmental goals.
CEO highlighted the importance of this green shift, citing Bangladesh’s vulnerability to climate change and disasters. Deploying solar-powered towers enables Grameenphone to reduce its carbon footprint, overcome electricity supply challenges, and pave the way for a greener future. As a frontrunner in green initiatives in Bangladesh, the company remains dedicated to comprehensive sustainability efforts.
The Government of Bangladesh has signed a grant agreement worth $12.40 million with the Asian Development Bank (ADB) to finance the ongoing Fourth Primary Education Development Program (PEDP-4). The grant proceeds, provided by the Education Above All (EAA) Foundation, Qatar Fund, will be utilized through ADB to enhance the primary education system and ensure inclusive and equitable access to quality education for children from pre-primary through grade 5.
The agreement was signed by the Secretary of the Economic Relations Division on behalf of the Government of Bangladesh and the Country Director of ADB’s Bangladesh Resident Mission. The Ministry of Primary and Mass Education is the executing agency for the program, with the Directorate of Primary Education (DPE) responsible for implementation. ADB has been a key development partner for Bangladesh, providing assistance across various sectors since 1973, with a total loan and grant amount of approximately $28,074 million and $553.4 million, respectively.
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Following the government's approval of onion imports from India, onion prices experienced a significant decline in various regions of Bangladesh. The Trading Corporation of Bangladesh reported that the local variety of onion was being sold at Tk 80 to Tk 90 per kilogram on Monday, marking a Tk 10 decrease compared to the previous day. Over the past month, prices of the local onion variety had risen by 81%, leading the agriculture ministry to allow imports to stabilize the volatile market. However the Director General of the Directorate of National Consumers Rights Protection (DNCRP), claimed that a group of traders had manipulated the market for higher profits.
Telecom operator Grameenphone has set an ambitious target to cut its carbon emissions by 50% before 2030, using 2019 emissions as a baseline. The company is actively implementing various initiatives to reduce its carbon footprint. These include enhancing energy efficiency, investing in renewable energy sources, fostering an energy-conscious culture, and collaborating with partners to minimize environmental impact, particularly in the supply chain.
Adani, an Indian power company, has encountered payment difficulties as the Power Development Board (PDB) in Bangladesh grapples with a shortage of dollars. Adani supplied 700-750 MW of electricity during the trial production period, totaling around 1.5 million units to PDB.
Company Monitor
Telecom operator Grameenphone has set an ambitious target to cut its carbon emissions by 50% before 2030, using 2019 emissions as a baseline. The company is actively implementing various initiatives to reduce its carbon footprint. These include enhancing energy efficiency, investing in renewable energy sources, fostering an energy-conscious culture, and collaborating with partners to minimize environmental impact, particularly in the supply chain.
Adani, an Indian power company, has encountered payment difficulties as the Power Development Board (PDB) in Bangladesh grapples with a shortage of dollars. Adani supplied 700-750 MW of electricity during the trial production period, totaling around 1.5 million units to PDB.
The Government of Bangladesh has signed a grant agreement worth $12.40 million with the Asian Development Bank (ADB) to finance the ongoing Fourth Primary Education Development Program (PEDP-4).The grant proceeds, provided by the Education Above All (EAA) Foundation, Qatar Fund, will be utilized through ADB to enhance the primary education system and ensure inclusive and equitable access to quality education for children from pre-primary through grade 5.
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Monitor
Economic Monitor
The Bangladesh Bank has reduced the Export Development Fund (EDF) by $400 million in May to increase net foreign exchange reserves, aligning with International Monetary Fund (IMF) conditions. The IMF recommended that Bangladesh raise its net reserves to over $24 billion by June, which is slightly below the required amount. Although the central bank does not disclose net reserves, it reported gross foreign exchange reserves of $29.87 billion as of Thursday.
Bangladesh experienced a drop in overseas remittance in May. The remittance received during the month amounted to around USD 1.69 billion, reflecting a 10.27% decline compared to the previous year. April also saw a decrease of 16.26% in remittance compared to the corresponding period. This trend is concerning, as remittance is typically strong before Eid when expatriates send additional funds for their families' expenses. However, even during the Eid month of April, remittance was not favorable.
Bangladesh's inflation soared to a 10-year high of 9.94% in May, according to the Bangladesh Bureau of Statistics. The previous highest level was observed in August last year, with the Consumer Price Index surging to 9.52%. Both food and non-food inflation increased, with food inflation rising to 9.24% and non-food inflation reaching 9.96% in May.
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