Business
Renata Pharmaceutical to use bKash’s ‘Cash Pickup’ service
Renata Pharmaceutical Ltd has signed a memorandum of understanding to use bKash's B2B “Cash Pickup” service at 19 distribution centres across the country.
Ali Ahmed, chief commercial officer of bKash, and Mustafa Aleem Awlad, chief financial officer of Renata Limited, signed the MoU on behalf of their respective organizations, according to a press release.
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This initiative will save time and money in the organization's supply chain at the depot and field level financial management, which will also contribute to business expansion, it said.
This type of B2B solution will make the transaction from manufacturer to seller easier, transparent, and secure, it also said.
Also read: bKash becomes 1st regional sponsor for Argentine national teamAt present, customers are buying medicines from most of the country's pharmacies and paying through bKash. On the other hand, drug sellers can also pay the price of products purchased from Renata directly through their bKash merchant account, said the release.In this way, the service will enhance the financial management of the supply chain of pharmaceutical and other industries and contribute to strengthening the country's digital payment ecosystem, it said.
Also read: bKash offers 1 pc cash bonus on receiving remittance
bKash CEO Kamal Kadir, Renata Limited MD and CEO Syed S Qaiser Kabir, EVP and Head of government partnership and business sales of bKash Mashroor Chowdhury, among other were present at the signing.
Bangladesh Bank seeks explanations from 13 banks for selling dollars at higher prices
The Bangladesh Bank (BB) has sought an explanation from 13 banks for selling US dollars at high prices.
The summoned banks belong to the private sector, including a Shariah-based Islami Bank.
The central bank confirmed the information on Monday (September 04, 2023). The letter was sent to different banks on Sunday (September 3) and the banks have been asked to provide an explanation in this regard within the next five working days.
Also read: Dollar goes off kerb market after central bank-led raids of money exchanges
The bank’s Executive Director and Spokesperson Md. Mesbaul Hoque told UNB that the trading licences of seven money changers have been suspended for selling dollars at higher prices.
An explanation has been sought from 10 more money changers following similar complaints. In addition, banks are also being monitored. Punitive action will be taken if concrete evidence is found, he said.
In August, the maximum import price of Tk109.5 was set, but some banks sold dollars up to Tk117, and bought it at Tk116.
Also read: Bangladesh Bank working to normalise inflation and dollar crisis despite geopolitical challenges
Dollar transactions are inspected by Bangladesh Bank's Financial Integrity and Customer Service and Foreign Exchange Inspection Departments. Recently, the central bank sent for inspection due to the increase in the price of the dollar. After collecting the information, the issues of dollar sales are being verified.
In 2021, the central bank ordered to spend Tk 500 crore on the CSR sector from the profits of 12 banks due to excess profit. There were two foreign-owned banks and 10 private sector banks on that list.
The dollar crisis in the country has become evident since March last year after the start of the Russia-Ukraine war. To deal with this crisis, the central bank fixed the dollar price at the beginning, but the crisis continued.
Also read: Bangladesh Bank introduces 'market-based' dollar exchange rate with rate cap
Direct flight from Bangladesh-Japan to deepen bilateral ties: State Minister for Civil Aviation
State Minister for Civil Aviation and Tourism Md Mahbub Ali on Monday said direct air connectivity between Bangladesh and Japan will play an important role in making the existing bilateral relations more effective and wider.
He said this while addressing an event organised by Biman Bangladesh Airlines on the grand opening of the Narita (Japan)-Dhaka Flight at a hotel in Japan’s Narita on Monday night (local time).
This flight is a gift from the prime minister to Bangladeshi expatriates brothers and sisters, he said, hoping that it will help expatriates keep a close relation with the country and make their journey to the country hassle free and more comfortable.
the Bangladeshis will avail themselves to visit Japan easier, he said.Simultaneously, Japanese people can visit and enjoy Bangladeshi beautiful nature, rivers, mountain, the world's longest sea beach at Cox’s Bazar, greenery of tea gardens in Sylhet, traditional food and warm hospitality, colourful festivals, archaeological sites, many ancient mosques and temples, UNESCO declared world heritage and the world's largest mangrove forest Sundarbans, sixty dome mosque of Bagerhat and Paharpur Buddhist Vihara etc.
Actually, the aviation and tourism industry will take the relationship of the two countries further forward by creating people-to-people relations, he hoped.
Read: Biman’s Dhaka-Narita direct flights will boost Bangladesh-Japan trade, relations: BCCIJ president
He said opportunities for economic and technological cooperation, trade and investment, education, tourism, culture and sports activities will increase between the countries in the days to come.
Bangladesh offers an unparalleled investment climate compared to the other South Asian economies. Bangladesh is a largely homogeneous society with no major internal or external tensions and a population with great resilience in the face of adversity, the state minister said.
Mahbub Ali said the confidence of foreign investors in Bangladesh has increased, as the country has taken a series of measures to build up investment-friendly infrastructure; develop the energy sector; provide necessary facilities and support to set up industries and simplify rules and regulations.
Read more: Dhaka-Narita Tokyo direct flights launched
RMG exports for July-August this year grow by 12.46%
Apparel export for the period of July-August of FY2023-24 has grown by 12.46% year-over-year basis to US$ 7.99 billion from US$ 7.11 billion during the same period of the fiscal year 2022-23, according to the statistics from the Export Promotion Bureau (EPB).
In July-August period of this year 2023, the apparel export target was US$7.88 billion. The apparel sector has recorded an export worth US$7.99bn – 1.46% over the target.
The export of knitwear was US$ 4.58 billion, while the export of woven garments was US$ 3.42 billion, registering 17.02% and 6.86% year-over-year growth respectively, data from EPB showed.
Also read: RMG exports: Bangladesh earned $3.95 billion in July, says BGMEA
The single-month apparel export earnings which means export in August 2023 was US$ 4.04 billion with 7.99% growth compared to August 2022.
The overall growth in RMG exports is “quite impressive,” BGMEA Director Mohiuddin Rubel.
“The recent trend in trade reflects a depressing scenario of the retail business and economy, which might be continued throughout this year," he, however, said.
Also read: Bangladesh's RMG export to USA grows 6.31% in FY 2023-24
“For Bangladesh, the positive side is that we are being able to gradually diversify our products and moving toward sophisticated items, which is reflected in the growth,” he added.
In the last financial year 2022-23, total garment export was US$46.99 billion – a 10.27 percent growth.
Also read: RMG exports in FY23 almost $47bn, 85% of total exports
Biman’s Dhaka-Narita direct flights will boost Bangladesh-Japan trade, relations: BCCIJ president
The launch of Biman's Dhaka-Narita (Tokyo) direct flight will enhance trade and relations between the two countries, Badal Chaklader, president of Bangladesh Chamber of Commerce and Industry in Japan (BCCIJ), has said.
He said this while speaking at a reception programme organised by BCCIJ in Japan's Tokyo on Sunday (September 03, 2023) night.
He also thanked the Bangladesh government and Biman Bangladesh Airlines for launching the direct flight.
Read: After Narita (Tokyo), Biman eyeing flights to New York, Chennai, Los Angeles, Rome
"We expect that the direct flights would not be discontinued like in the past. We want more Japanese investment in Bangladesh," the BCCIJ president said.
“For boosting trade with Japan, initiatives should be taken to operate daily flights in phases. The quality of services offered by the airline should also be enhanced so that domestic and foreign passengers show more interest,” the BCCIJ president added.
Business leaders said that Japanese investors were often not interested in going to Bangladesh due to lack of direct flights. It also took a long time for Bangladeshis to travel to and from Japan.
Relations and trade between the two countries will reach a new height due to the direct Biman flights, they hoped.
They also urged Biman authorities to transport dead bodies of Bangladeshi expatriates to the country free of cost.
Business leaders also demanded harassment-free services at Dhaka airport.
Read: Dhaka-Narita Tokyo direct flights launched
State Minister for Civil Aviation and Tourism, Md Mahbub Ali, said, “We have 50 years of relationship with Japan. This relationship will grow even more due to the direct flights to Japan. Biman resumed flights to Tokyo, Japan after 17 years and it will facilitate passengers as well as cargo transportation.”
“Besides, more Japanese businessmen will now come to Bangladesh and invest here as our country has great potential,” he added.
August remittances slide to 6-month low clocking $1.6 billion
Bangladesh recorded just $1.6 billion in inward remittances for the month of August, a six-month low that narrowly surpassed February's $1.56 billion.
The country received $2.19 billion in remittances in June, followed by $1.97 billion in July, raising hopes of an uptick stabilising around $2 billion. But the August data arrived to shatter such misconceptions.
Also read: Bangladesh received $1.97 billion remittance in July
Year-on-year, inward remittance flow declined by 21.57 percent in August, from the high of $2.03 billion in 2022-23, and $1.81 billion in 2021-22.
The sector insiders and observers could only point to increased hundi i.e. sending or receiving money via careers or other irregular channels, as a cause for the decline. Normally hundi increases when the dollar price gap widens in the kerb (open) market than in banking channels.
Also read: $21.61 billion remittances in FY23, second highest ever
“When demand for hundi increases, remittances decrease. The dollar was fetching Tk 5-6 more in the kerb market than in banks last month. So, expatriates reduced sending remittances through legal channels to avail the higher offer in the kerb market,” they pointed out.
For almost a year now, banks have been fixing the price of the dollar in terms of payment of export and expatriate income and import liabilities for the dollar crisis and market stability.
Now the banks are offering Tk109.5 per dollar for expatriate income. Export bill encashment offers a price of Tk109.5 per dollar and a maximum of taka Tk110 for import and interbank transactions.
Also read: US Dollar rate Tk108.5 for remittance, Tk107 for exports from Thursday
Dollar goes off kerb market after central bank-led raids of money exchanges
The dollar crisis in the kerb market has grown deeper after Bangladesh Bank and law enforcers raided the money exchange houses with allegations of profiteering by charging higher exchange rates.
In the last two weeks, the exchange rate of the US dollar in the kerb (open) market reached Tk117 to 118 per dollar from Tk112. Under the central bank's direction, law enforcers raided different exchange houses in different areas of the capital towards the end of last week, and over the weekend.
During these raids, the exchanges were strictly instructed to sell dollars at the previous rate of Tk 112 to 113.
Also read: Bangladesh Bank working to normalise inflation and dollar crisis despite geopolitical challenges
But not, on the first working day of this week, it emerged that stung by the raids, the money exchanges have taken the dollar off the market completely. You cannot buy a dollar for even Tk120, as the exchange houses are resolutely stating they have no dollar to sell.
Licenses of several establishments were suspended and sealed for selling dollars at high prices. In such a situation, money exchange institutions have almost stopped selling dollars due to fear of punishment. As a result, there is a shortage of dollars in the open market, said the sector insiders.
Replying to a query about the dollar crisis in the kerb market, Bangladesh Bank Executive Director and Spokesperson Mesbaul Hoque told UNB that the dollar is being traded, but not everyone is selling it. Only those who have dollars are selling, according to the spokesman.
Also read: Bangladesh Bank introduces 'market-based' dollar exchange rate with rate cap
Zaman (not real name), the owner of a money exchange house in the Motijheel area, told UNB on Sunday that they cannot buy even at Tk115, how can it be possible to sell dollars at Tk 112-113, he questioned.
Many other money exchange houses and individual floating traders of the US dollar were seen passing idle time on Sunday due to the supply crisis of the dollar.
This dismal picture was seen visiting money exchanges in Motijheel, Paltan, and Baitul Mukarram areas of the capital
Our correspondent searched in other areas like Gulshan, Banani, Mohakhali, and Farmgate too, with no luck.
Also read: Dollar exchange rate for repatriated export income increased to Tk107.5
“Money changers buy from one person and sell to another. At the current rate, the money changers have to buy dollars at Tk110 to sell dollars. How will money changers get dollars if no one sells dollars below Tk112? Trader can't sell if he doesn't get dollars, money changers pointed out,” said Aynal, who has been involved in dollar trading for the last 12 years.
Oram Faruk came to Motijheel to buy dollars as he has to go to Thailand on September 6. He visited several banks to buy dollars for expenses but did not get any.
“Now came to the money changer, no dollars here either. I called an acquaintance in Gulshan to manage $400, which is possible at a cost of Tk120 per dollar," Omar said.
Asked why he would agree to buy at such steep rates, Omar pointed out: "Regardless of the price, how can I go abroad without dollars?"
Also read: Interbank dollar exchange rate jumped to Tk109
Stakeholders collaboration, innovative business model stressed for transition to circular economy in Bangladesh’s textile and garment industry
Speakers at a panel discussion stressed the need for collaborative approach of the industry stakeholders, innovative business model, and financial support mechanism to foster a circular industrial ecosystem in order to drive transition of Bangladesh’s RMG industry to circular economy.
The discussion was as a part of a dialogue titled “Switch to Upstream Circularity: Pre-consumer Textile Waste in Bangladesh”.
This event was organized under the Switch to Circular Economy Value Chains project (SWITCH2CE), co-funded by the European Union and the Government of Finland. SWITCH2CE is led by United Nations Industrial Development Organization (UNIDO), in collaboration with Chatham House, Circle Economy, and European Investment Bank, and supports the switch to circularity in selected global value chains.
Dishan Karunaratne, Chief Representative of Bangladesh and Pakistan at BESTSELLER, Dr. M. Masrur Reaz, CEO of Policy Exchange, Mohammed Zahidullah, CSO of DBL Group, Md. Shahidullah Azim, Vice President of BGMEA and Syed Mahbubur Rahman, Managing Director and CEO of MTB, BD took part in the panel discussion on “Enabling a circular industrial ecosystem by an innovative business model”.
Moderated by Shams Mahmud, Managing Director of Shasha Denims, and also the Chair of BGMEA Standing Committee on Foreign Mission Cell, the panelists discussed circularity scenarios and possible solutions to successfully transform Bangladesh’s garment and textile industry to integrate circularity into the value chain.
Challenges of circularity for Bangladesh’s apparel industry must be collectively considered, resolved: Speakers
Circularity presents a significant opportunity for Bangladesh to reduce its environmental impact, improve its economic performance, and create social benefits, experts have said.
However, embracing circularity also poses certain challenges for Bangladesh’s apparel industry that must be collectively considered and resolved, they said.
An esteemed panel of industry leaders, policymakers, and experts in circular economies convened for the "Switch to Upstream Circularity Dialogue: Pre-consumer Textile Waste in Bangladesh" event at the Amari Hotel in Dhaka Sunday.
The dialogue covered the strategies, policies, infrastructure, collaborations, and innovations necessary to build a thriving circular ecosystem in Bangladesh.
This event was organized under the Switch to Circular Economy Value Chains project (SWITCH2CE), co-funded by the European Union and the Government of Finland. SWITCH2CE is led by United Nations Industrial Development Organization (UNIDO), in collaboration with Chatham House, Circle Economy, and European Investment Bank, and supports the switch to circularity in selected global value chains.
A diverse group of stakeholders attended, including brands, manufacturers, policymakers, and financial institutions.
Saber Hossain Chowdhury MP, Chair of the Parliamentary Standing Committee on the Ministry of Environment, Forest and Climate Change, Bangladesh, and the Special Envoy to Prime Minister Sheikh Hasina for Climate Change, was present in the opening session as chief guest.
Faruque Hassan, President, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) spoke at the opening session as a special guest.
HSBC launches 3rd Business Excellence Awards
Aiming to celebrate the successful entrepreneurs and organisations for their significant contributions to Bangladesh’s growth journey and achievements in their sectors, the Hongkong and Shanghai Banking Corporation Limited in Bangladesh has launched the third edition of the ‘HSBC Business Excellence Awards’.
The theme of the awards is ‘Bangladesh: Proudly Resilient, Globally Excellent’.
Business enterprises and entrepreneurs can nominate themselves in eight categories by filling in a simple nomination form. The categories of 3rd HSBC Business Excellence Awards are:
1. Export Excellence - Ready Made Garments (RMG) (Annual export turnover of USD50 Million and above)
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2. Export Excellence - Supply Chain and Backward Linkage (Annual export turnover of USD10 Million and above)
3. Export Excellence - Nontraditional and Emerging Sectors (Annual export turnover (Non-RMG and non-Textiles) of USD3 Million and above)
4. Best in Import Substitution (Reducing or substituting imports to a value of USD10 million and above)
5. Leader in Inbound Investment and Infrastructure (Foreign investment in the form of capital, technology solution etc., contributing to fulfilling domestic demand and/or other impactful investments in building infrastructure, improving living standards and unlocking GDP growth)
6. Excellence in Sustainability (Organisation with the most impactful contribution to the society/community through implementation of sustainability project)
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7. Best in Innovation & Technology (Organisation who implemented the most impactful changes via innovation and technology touching and improving lives of people and making positive contribution to the country’s economy)
8. Special Achievement Award (Individual(s) / Organisation who has made exemplary contribution to country's socio-economic growth, excellence in innovation, job creation and supporting the community)
The awards programme is not exclusive to HSBC customers and is open to all enterprises and entrepreneurs operating in Bangladesh. There is no entry fee or financial recognition.
Md Mahbub ur Rahman, Chief Executive Officer, HSBC Bangladesh remarked, “HSBC Bangladesh has been supporting businesses and entrepreneurs in their growth journey for the last 27 years. We are delighted to be recognising the exceptional businesses who have contributed to Bangladesh’s trade growth, fulfilled domestic demand or facilitated development of infrastructure as Bangladesh prepares to thrive in a post-LDC graduation scenario.”
Read: CPD suggests bringing 856 risky garment factories under monitoring
“Through these awards, we recognise the achievements of the country’s most successful enterprises and entrepreneurs and recognise their relentless efforts to make Bangladesh’s mark in the global arena. We are proud to be playing our role in supporting those who are dynamic, resilient and making a difference to create an even more powerful economy", said Gerard Haughey, country head of Wholesale Banking, HSBC Bangladesh.
Nomination forms and other details of the programme are available at business.hsbc.com.bd/bea. Organisations can also nominate others for any categories of the programme.
Organisations concerned can apply in eight categories till Oct 1, 2023.