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Faridpur farmers anticipate impressive mustard yield worth Tk 151.38 crore
In Faridpur, a significant increase in mustard cultivation has been reported, with the area under mustard crops expanding by over 2,000 hectares from the previous season. This expansion anticipates a high-yield output valued at an impressive Tk 151.38 crore.
The Department of Agricultural Extension (DAE) in Faridpur has noted that mustard now spans 14,842 hectares, targeting a yield of 1,360 kg per hectare. Given the current market rate, which surpasses Tk 3,000 per maund, the district's projected earnings are substantial.
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Anwar Hossain, the Agriculture Officer of Faridpur Sadar upazila, attributes this growth to the rising prices of edible oils. He observed that mustard cultivation has become a preferred choice in nearly all fields across the district’s nine upazilas. “Farmers are increasingly turning to mustard due to its lower maintenance, availability of resources like fertilizers and medicines, and encouraging government policies,” said Hossain.
The district has seen the cultivation of various mustard varieties, including BARI-14, 15, 16, 17, Bina-4, 8, 9, and Tori-7. This diversification, coupled with the growing demand for pure mustard oil, has led farmers to focus on high-yielding strains.
Local farmers, Ibrahim Mollah and Rahim Matabbar from Ambikapur, highlighted the advice from the Department of Agriculture to plant an additional crop before the boro paddy season. This strategy maximizes the use of fields and aligns with the mustard’s shorter growth period of just 80-90 days.
Farmers expect bumper mustard yield in Khulna
The cost of cultivating mustard ranges from Tk 7,000 to Tk 8,000 per bigha, with the potential to yield 5-6 maunds of seeds per bigha, especially under favorable weather conditions. This efficient production cycle and promising market rates are driving Faridpur’s agricultural sector towards a robust mustard season.
Soaring prices in Khulna markets: A struggle for middle and low-income groups
In the aftermath of the January 7 national election, the kitchen markets in Khulna have witnessed a substantial hike in the prices of daily essentials, severely impacting middle-class and low-income families. This sudden increase in prices is making it increasingly difficult for these groups to manage their household budgets.
Recent market trends show a noticeable rise in the cost of various commodities. In particular, the prices of rice have seen a significant uptick over the past week. Seasonal factors have also led to increased vegetable prices during the winter, and essentials like broiler chicken, flour, pulses, chickpeas, ginger, and garlic are not exempt from this trend.
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Local consumers express a sense of helplessness, feeling like hostages to what appears to be an uncontrollable syndicate. This situation has exacerbated their financial challenges, especially for those struggling to meet daily expenses.
Traders attribute this surge in prices to a poor supply chain. However, residents speculate that certain unscrupulous traders are exploiting the post-election period to unjustifiably raise prices.
A recent survey of Khulna's kitchen markets revealed the following price points: Miniket rice at Tk 68-70 per kg, BR-28 Paijam variety at Tk 65-66 per kg, and local variety rice at Tk 50-52 per kg. Vegetable prices have also surged, with beans costing Tk 80-100 per kg, cauliflowers and cabbages at Tk 50 each, and eggplant, ridge gourd, and bottle gourd ranging from Tk 80 to Tk 100.
The poultry market is not immune to these increases, with broiler chicken now at Tk 220-225 per kg after a Tk 20 increase, and Pakistani chicken at Tk 320-340. Beef prices have also risen, selling at Tk 700 per kg despite authorities setting the price at Tk 650.
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Amirul Islam, a local fish trader, noted that fish prices have escalated by Tk 10-50. Additionally, the cost of chickpeas has jumped from Tk 85-90 to Tk 100-110 per kg, and high-quality pulses are now at Tk 150-160 per kg. Even the price of local onions has risen, now selling at Tk 80-100 per kg, up from the previous Tk 80-90.
This alarming price rise in essential commodities is placing significant strain on the residents of Khulna, with the most substantial impact felt by those in the middle and lower economic brackets.
Govt initiative to reduce edible oil imports: Jashore’s mustard farmers anticipate exceptional harvest
The mustard farmers of Jashore district are anticipating a record production and significant profits this year, thanks to favorable weather conditions and enhanced government support.
The Jashore Department of Agriculture Extension (DAE) revealed that the area under mustard cultivation surpassed the initial target of 29,900 hectares, reaching 30,265 hectares. This increase is a part of the government’s initiative to reduce edible oil imports, as highlighted by DAE sources.
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A visit to Churamonkathi village in Sadar upazila showcased vast fields adorned with vibrant mustard flowers. The farmers have adopted Bari-9 and Bari-14 mustard varieties, with the government providing each farmer with one kg of seeds and 20 kg of fertilizers per bigha of land to encourage cultivation.
Jabed Ali, a farmer from Kulia village in Jhikargacha upazila, shared his optimism: “Compared to other crops like paddy, mustard cultivation is less expensive and more profitable. That’s why many of us have chosen to cultivate mustard.”
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The farmers are optimistic about the harvest, which is expected to begin within the next 20-25 days. “If the weather remains favorable, we anticipate a bumper yield,” Ali added.
Zahidur Rahman, another farmer from Keshabpur upazila, echoed this sentiment: “Last year, I harvested five maunds of mustard. With the current conditions, I expect an even greater yield this year.”
Dr. Sushanta Kumar Tarafdar, Deputy Director of DAE, underscored the government’s commitment to reducing edible oil imports. “By increasing the cultivation of Robi season crops like mustard, we aim to achieve this goal. This year, Jashore has seen a record yield,” he stated.
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The government provided seeds and fertilizers to 37,800 farmers across the district, including those in Abhaynagar upazila, where mustard cultivation covered 2,110 hectares.
The concerted efforts of the farmers, favorable weather, and government support have combined to set the stage for a highly successful mustard harvest in Jashore, marking a significant stride in Bangladesh’s agricultural sector.
Voter turnout over 60% in 21 constituencies, below 30% in 52: EC stats
Though the overall voter turnout was 41.99 percent in the 12th parliamentary election held on Sunday (January 07, 2024), more than 60 percent of registered voters cast their ballots in 21 constituencies and less than 30 percent voted in at least 52 constituencies, according to Election Commission data.
The highest 87.24 percent votes were cast in Gopalganj-3 and Awami League President and Prime Minister Sheikh Hasina was elected from the constituency, according to the data.
The lowest turnout was 13.04 percent in Dhaka-15. State Minister for Industries Kamal Ahmed Majumdar won the election from the constituency as an AL contender.
In the national election held amid boycott of a major political party BNP, ruling Awami League secured 222 seats, while Jatiya Party obtained only 11 seats. Independent candidates clinched victory in 62 seats.
Besides, Bangladesh Workers Party, Jatiya Samajtantrik Dal (Jasod) and Bangladesh Kalyan Party each won a seat. The election result of Mymensingh-3 was postponed.
Out of the country’s 300 seats, Sunday’s balloting was held in 299 seats as the election to Naogaon-2 was earlier postponed by the commission following the death of a valid candidate there.
The five constituencies with more than 70 percent voter turnout are: Gopalganj-3 (87.24% turnout; AL candidate Sheikh Hasina won), Gopalganj-2 (83.20%; AL candidate Sheikh Fazlul Karim Selim won), Brahmanbaria-6 (76%, AL’s AB Tajul Islam won), Chattogram-6 (73.24%; AL’s ABM Fazle Karim Chowdhury won) and Sirajganj-1 (72.32%; AL candidate Tanvir Shakil Joy won).
Read: BNP demands fresh election to establish legitimate govt, PM Hasina’s resignation
The constituencies having over 60 percent voter turnout include Naogaon-1, Bagerhat-1, Bagerhat-2, Bagerhat-4, Barishal-1, Jamalpur-1, Mymensingh-10, Faridpur-4, Gopalganj-1, Madaripur-1, Cumilla-7, Cumilla-8, Feni-2, Noakhali-6, Chattogram-7 and Bandarban.
Sheikh Fazlul Karim Selim secured the highest 295,291 votes for the ‘boat’ symbol in Gopalganj-2.
Tanvir Shakil Joy got the second highest, 278,971 votes, in Sirajganj-1.
Mirza Azam received 276,453 votes in Jamalpur-3 and Dipankar Talukdar got 271,373 votes in Rangamati.
Among the elected candidates, independent candidate Awlad Hossain secured victory obtaining the lowest number of 24,775 votes in Dhaka-4.
Candidates who won even after getting less than 40,000 votes are: AL nominated Muhammad Shafikur Rahman (36,458 votes) in Chandpur-4, independent contestant Saddam Hossain Pavel (39,321 votes) in Nilphamari-3 and AL’s Kamal Ahmed Majumdar (39,632 votes) in Dhaka-15.
Less than 20 percent votes were cast in five constituencies, which are Dhaka-15 (13.04%), Dhaka-17 (16.66%), Dhaka-8 (18.70%), Sylhet-1 (19.30%) and Dhaka-16 (19.88%). In Sylhet-1, Foreign Minister AK Abdul Momen was elected.
Read: Visiting foreign observers describe National Election 2024 in Bangladesh as ‘free, fair and safe’
Jatiya Party Chairman GM Quader and Secretary General Mujibul Haque won amid low turnout of voters in their constituencies.
GM Quader ran the election from Rangpur-3 where the voter turnout was only 22.36%. Mujibul Haque who contested the polls from Kishoreganj-3 witnessed voter turnout of 29.33%.
The constituencies that witnessed voter turnout of 20-29 percent also include Rangpur-3, Kurigram-1, Kurigram-2, Kurigram-3, Gaibandha-1, Gaibandha-3, Bogura-2, Bogura-4, Bogura-6, Bogura-7, Chapainawabganj-3, Rajshahi-2, Patuakhali-1, Barishal-5, Mymensingh-5, Mymensingh-6, Mymensingh-8, Kishoreganj-3, Manikganj-1, Dhaka-4, Dhaka-5, Dhaka-6, Dhaka-7, Dhaka-9, Dhaka-10, Dhaka-11, Dhaka-13, Dhaka-14, Dhaka-18, Dhaka-19, Gazipur-2, Sylhet-5, Sylhet-6, Habiganj-1, Chandpur-3, Chandpur-4, Noakhali-3, Noakhali-4, Lakshmipur-1, Lakshmipur-3, Lakshmipur-4, Chattogram-5, Chattogram-8, Chattogram-10, Chattogram-11, Chattogram-15 and Cox’s Bazar-1.
A total of 4,99,65,467 votes out of 11,89,89,241 were cast in 298 constituencies in the January-7 general election.
Read more: Envoys of India, China, Russia and four other countries congratulate Hasina on her big election victory
12th parliamentary election: all eyes on celebrity candidates
The 12th parliamentary election of the country is all set to take place on Sunday. Although being a Member of Parliament is nothing new from the entertainment and sports sectors, a number of celebrities have entered the race this time around as candidates.
While some of them are independent candidates vying for votes, others are party nominations, courtesy of the ruling Awami League. These candidates stepped outside the box and worked day and night, knocking on people's doors for the votes.
On the eve of the vote an analysis from observation of the last few days indicates that popular actor Ferdous Ahmed in Dhaka-10 constituency, former Bangladesh cricket team captain Mashrafe Bin Mortaza in Narail-2 and the current National cricket team captain Shakib Al Hasan in Magura-1 are the top most popular candidates in their respective seats with Awami League's ‘Nouka’ (boat) symbol, without strong competition against them.
The rest of the celebrity candidates, including veteran thespian and former Cultural Affairs Minister Asaduzzaman Noor from Nilphamari-2 seat and singer Momtaz Begum in Manikganj-2 seat f may have to face a tough fight even after receiving the nomination of Awami League.
Magazine show ‘Ittyadi’-famed popular singer-musician Nakul Kumar Biswas is contesting from the Krishak Sramik Janata League in Barisal-2, Bangladesh Nationalist Movement (BNM) candidate and popular singer Doli Sayontoni is contesting from Pabna-2, and Dhallywood actress Mahiya Mahi is contesting as the independent candidate for Rajshahi-1 after getting refused nomination from Awami League.
Awami League set to win Sunday’s election amid opposition boycott
Bangladesh is set to hold the 12th parliamentary election on Sunday with the ruling Awami League’s victory is guaranteed for a historic fourth consecutive term amid an opposition boycott.
The main opposition BNP and several other parties are sitting out of the polls, which are being participated by the Awami League and 27 other political parties.
Thanks to the opposition boycott the AL is expected to sweep the polls to again form the government and extend its 15-year rule for another five years until 2029, according to analysts.
The opposition is staying out of the race after Hasina’s government rejected its demand to transfer power to a non-partisan administration to oversee a free and fair vote.
In a new development in the country’s electoral history the ruling party is facing tough fight mainly from the party’s own members contesting as independents.
In a televised address to the nation wrapping up her election campaign on Thursday, Prime Minister Sheikh Hasina appealed to the voters to go to polling centres early in the morning. She asked them to cast their ballots for boat, her party’s election symbol.
But the opposition BNP and its like-minded parties have called for a 48-hour hartal (general strike), including on the Voting Day.
Security has been stepped up across the country after a series of arson attacks on polling centres and fire on a moving train, Benapole Express, on Friday night that left four people, including children charred to death.
On Saturday, election officials fanned across the country to reach election materials – expect ballots – to the polling centres, said the EC. The ballots, however, will be sent to the centres in the morning of the voting day.
The balloting will start at 8am and continue till 4pm non-stop in 299 out of the country’s 300 constituencies. Voting in Naogaon-2 constituency has been postponed following the death of an independent contender, according to the Election Commission.
As many as 1,969 candidates, including 436 independent contenders are running in the general election.
In 80 to 100 constituencies, tough fights are expected to be seen between AL candidates and its own rivals who are running as independent contestants.
The ruling party nominated candidates are vying in the election with 'boat' symbol in 265 seats, while the party is sharing 26 seats with Jatiya Party and six seats with three partners of its 14-party alliance – three for Jasod, two for Workers’ Party and one for Jatiya Party (JP-Manju).
There is no AL candidate in Barishal-4 and Cox's Bazar-1 as the candidacies of its nominated contestants were cancelled in the two constituencies. AL MP Pankaj Nath as an independent candidate is running in Barishal-4 and Kalyan Party Chairman Syed Muhammad Ibrahim in Cox's Bazar-1.
How the fishermen of Dublar Char vote during shutki season
The election wind has touched the Dublar Char, popularly known as “Shutki Polli” or Dried Fish Village, near the Sundarban in full swing as the 12th parliamentary election is knocking at the door.
Thousands of fishermen have been leaving for home to join the voting festivities as they want to elect their favorite candidate by voting. A number of fishermen were seen today leaving for the coast with their boats with high enthusiasm.
According to the Forest Department, more than 9,000 fishermen who came to Dublar Char during the dried fish processing season have returned home to vote.
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Dublar Char consists of Alorkol, Middle Fort, Coconut Baria and Shalar Char. Every year, several thousand fishermen and hired hands flock to the area to catch fish and make shutki (dried fish).
The Forest Department also said that this year, the authorities concerned have given permission to erect 108 makeshift houses and 78 depots for accommodation of fishermen and preservation of dried fish.
Fishermen usually return home at the end of the season. But this time the fishermen are returning to their respective homes to cast their votes in the parliamentary elections.
The fishermen hail from Sharankhola, Rampal, Morrelganj, Mongla, Khulna Sadar, Koyra, Dakop, Batiaghata, Satkhira Sadar, Ashusuni and other upazilas of Bagerhat district.
10,000 fishermen likely to gather at Dublar Char as dried fish processing season starts
Several fishermen from Rampal and Mongla areas of Bagerhat district, Dakop of Khulna district and Satkhira said that they want to elect their preferred candidates in the upcoming 12th parliamentary elections. Many will go to their homes by Saturday morning. After voting on Sunday, they will leave for Dublar Char again on Monday with boats.
The fishermen expect that whoever they vote for will be elected and speak for them in parliament. The elected representatives will work to improve the fate of the common people.
Fishermen hope the next government will keep the prices of essential commodities including rice, pulses and oil within the purchasing capacity of the common people.
Forester Md Khalilur Rahman, officer-in-charge of Dublar Char fishermen's patrol outpost, said more than 10,000 fishermen come to Dublar Char during the 'Shutki' season. After the allocation of symbols to the candidates in the election, many of the fishermen living there campaigned for their preferred candidate. Some even hung posters of the candidate in Dublar Char.
"Two days before casting their votes in the 12th parliamentary elections on January 7, the fishermen left for their homes with permitted boats," he added.
Bagerhat's Dublar Char abuzz as fish drying season begins
Md Khalilur Rahman said there are now about 1,000 fishermen in Dublar Char. The fishermen who went to vote will return to Dublar Char on Monday.
Kamal Uddin Ahmed, chairman of Dubla Fisherman Group, said fishermen were huge enthusiastic about the 12th parliamentary election this year. Ninety percent of the fishermen return home with their boats to vote.
According to the Sundarban Forest Department, the 'Shutki' season started in November and will continue till March.
Acute gas crisis hits Chattogram city residents hard
Different areas in Chattogram city have been experiencing shortage or low pressure in gas supply for the past one and a half months, hampering the household chores and production at industrial units.
City dwellers said although the gas crisis started in the mid October, it has intensified recently. Some of them alleged that they do not get any gas even in 24 hours.
According to Karnaphuli Gas Distribution Company Limited (KGDCL), the gas shortage in Chattogram port city turned acute due to suspension of gas supply from one of the two LNG terminals in Moheshkhali.
Besides, the authorities also suspended gas supply in households due to maintenance purposes.
KGDCL authorities said Chattogram used to some 310-400 million cubic feet of gas from the national grid during normal time but on January 3 it reveived only 280 million cubic feet.
The city dwellers have been experiencing the gas crisis since October 22 and gas supply remains suspended from 9 am to 3 pm in most of the areas.
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KGDCL authorities said the gas shortage may continue for a long time due to low pressure of gas supply from Moheshkhali LNG gas terminal.
Meanwhile, Omar Hazzaz, president, Chattogram Chamber of Commerce and Industries (CCCI), urged State Minister for Power, Energy and Mineral Resources Nasrul Hamid to take necessary steps to mitigate the sufferings of the consumers.
He also sent a letter to the minister on Wednesday.
“Chattogram needs 400-450 million cubic feet of gas but only 280 million cubic feet is available now. Of the total gas, nearly 100 million cubic feet gas is used in two fertilizer factories and one thermal power plant while the rest are being distributed to the residents, industries and CNG filling stations, which is not sufficient,” the letter reads.
The rest of the gas is being distributed to a large number of residential consumers in the city, factories and CNG stations using various strategic methods. As a result, the factories and households are facing a serious gas crisis, it added.
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Managing director of KGDCL (operation division), Engineer Aminur Rahman, said the people of Chattogram port city depend on LNG gas supply and the supply of gas has reduced remarkably.
“It is difficult to say how long the crisis will stay,” he added.
Talking to some residents in Lalkhan Bazar, Kazir Dewri, Askar DighirPar, Khulshi, Jamal Khan lane, Dewanji Pukur Par, Dewan Bazar, Hem Sen Lane, Shulokbohor, Ghat Farhadbegh, Bakolia, Chawkbazar and others area, this UNB correspondent found that people of those areas are passing their days in misery during this winter.
Many residents of the areas said it is not new. Every year they experience gas crisis from November to February.
Shahnur Sultana, an employee of a bank, said “Now I have to leave my house in the morning without having any breakfast as there is no gas in my house in the morning. We have to buy food from a local hotel.”
KGDCL authorities said the gas supply to the domestic consumers has been disrupted as they have to supply gas to Chattogram Urea Fertilizer Limited (CUFL) and Karnaphuli Fertilizer Company Limited (KFCL).
Raid Uddin Ahmed, General Manager (Marketing, South Division) of KGDCL, said two Moheshkhali LNG terminals supply a total of 800-900 million cubic feet of gas to the national grid but now supply from one of them has been suspended due to maintenance work.
The supply situation will improve after the completion of the maintenance work, he added.
There are 6,01,914 consumers under KGDCL and of these, 5,97,516 connections are given to households.
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Power generation capacity increased by almost 20% to cross 30,000MW in 2023
The country’s overall power generation, combining grid capacity and off-grid (mainly captive) power, increased by about 5000MW in 2023 to reach a new benchmark of 30,700MW, although with demand failing to keep up, this is expected to lead to higher capacity payments for the government.
This is disclosed in available data from the state-owned Bangladesh Power Development Board (BPDB), Bangladesh Energy Regulatory Commission (BERC) and Sustainable and Renewable Energy Development Authority (Sreda).
The BPDB data shows that of the 5000MW new power generation, some 3,343MW was added to the national grid by the import electricity from India and production from newly set up local power plants while about 1400MW came from off-grid captive and off-grid solar power.
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It also shows that the country’s installed grid-connected power generation capacity has reached to 25,951 MW on December 30 in 2023 from 22,608 MW in 2022 showing a capacity enhancement of 3343 MW.
Beyond the national grid, as per BERC data, the captive power generation has increased by 1379MW to reach 4760 MW in 2023 from 3,381MW in 2022.
The captive power plants were mainly set up by industries for their own consumption to get uninterrupted power supply as the grid power does not guarantee uninterrupted supply.
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Sources in the power sector said that despite more than 40 percent surplus power generation in the country, still many industries prefer to use their captive power for uninterrupted supply.
A huge number of applications remain pending with the Bangladesh Energy Regulatory Commission (BERC) to set up more captive plants.
The power generation from non-conventional, or renewable sources also witnessed an increase in 2023.
The Sustainable and Renewable Energy Development Authority (Sreda) statistics show that the solar power generation capacity reached 1200MW in 2023 from 700MW in 2022.
Of the 1200 MW, the off grid is 366.76 MW while ongrid is 601.02 MW. However, the country’s hydroelectric capacity of 230 MW is included in the Sreda statistics.
Together the new off-grid captive power and grid-connected power has pushed up the country’s total power generation capacity to 30,711 MW in 2023 from about 25,700 MW at the end of 2022.
BPDB officials said that the import of 1600 MW from the Adani Group’s plant for Bangladesh in Godda, Jharkhand, has played a major role in increasing the power generation capacity of the country.
Apart from the import, the commercial operations of a number of base-load power plants played a significant role in raising power generation capacity.
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These new power plants include 600 MW second unit of Rampal Power Plant, and 1200 MW Banshkhali power plant of S Alam Group. There is also a 200 MW Solar power plant in Khulna by Orion Group.
Although this capacity enhancement in power generation is a pleasing development on the face of it, especially given the country’s long history of struggle with power shortages, BPDB officials are also quick to point out that the growing surplus capacity would also lead to a rise in capacity payments, whereby IPPs get paid even for the electricity the government doesn’t need from them.
They said that the new power plants being added to the grid were set up by the IPPs, or independent power producers (the private sector firms investing in the power sector, by building and often operating the plants), and the BPDB has an obligation to purchase power from them - to not let their investment go to waste or end in loss. Having them exit the power sector due to losses would be a bigger blow to BPDB's long-term vision.
The increasing burden of capacity payments may pinch the government, as well as the consumer, harder if the dollar crisis prevailing in the country persists. According to the Centre for Policy Dialogue, a Dhaka-based think tank, capacity payments to private, rental, and quick rental power plants have increased from Tk 5,376 crores in FY2017 to as high as an estimated Tk 28,000 crores in FY 2023.
In 2024, surplus electricity generation capacity is projected to rise to 50 percent from the existing 40 percent, as the country’s peak hour demand is about 16,000 MW, according to a top BPDB official.
It would mean even at peak demand, half the plants would be surplus to requirements, and thus lie idle.
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Bangladesh goes into new year with a volatile forex market
In 2023, Bangladesh grappled with persistent volatility in its foreign exchange market, despite concerted efforts by Bangladesh Bank to stabilize the situation through significant dollar sales from its reserves.
Economists have pinpointed policy missteps as the root cause, warning that without a shift in Bangladesh Bank's strategy, the foreign exchange crisis could extend into 2024.
To counter market instability, Bangladesh Bank dispensed a substantial USD $6.7 billion from its reserves in the first half of the fiscal year 2023-24. During this period, it also purchased approximately one billion dollars from various commercial banks, as confirmed by the central bank’s concerned department.
Dr Ahsan H. Mansur, a former senior economist at the IMF, expressed to UNB his concerns regarding Bangladesh Bank’s conservative exchange rate policies. "The increasing demand for foreign exchange is artificial, largely driven by trade-based capital flight. A more competitive exchange rate could significantly curb this trend," Dr Mansur explained.
Read: Forex reserves to improve soon: Finance Minister hopes in budget speech
He further noted that market-based exchange rates could incentivize expatriates and exporters to increase remittances and repatriate export proceeds.
Prof Mustafizur Rahman, a distinguished fellow at CPD, highlighted another challenge: the deferred payment of foreign liabilities, exacerbating the strain on foreign exchange reserves.
Prof Mustfiz emphasized, “Effective monitoring to prevent capital flight, coupled with competitive exchange rates, is crucial for minimizing the dollar shortage.”
Md Mezbaul Haque, Bangladesh Bank’s spokesperson and executive director, outlined the dire situation: "Our import costs are not being offset by export income, and remittances are below expectations. This has led to an acute foreign exchange crisis."
Read: Import controls fail to arrest decline in forex reserves
To mitigate this, the central bank sold large volumes of dollars from its reserves, primarily to import fuel, fertilizers, and food. Simultaneously, the bank has been purchasing dollars to bolster reserves, a requirement for securing IMF loans. Yet, the dollar crisis persists, with banks struggling to manage their dollar transactions.
Banks currently buy dollars from expatriates and export earnings at Tk 109.50, while selling to importers at Tk 110 officially. However, many banks are charging over Tk 110 per dollar for sales. Some even buy expatriate income at rates as high as Tk 123 per dollar.
As of November 30, 2023, Bangladesh's foreign exchange reserves stood at $25.02 billion, or $19.40 billion according to the IMF's BPM6 formula. By December 28, reserves had climbed to $27.04 billion, thanks to IMF loan installments, ADB budget support, and various project disbursements.
Despite these increases, upcoming bill payments in early January, 2024 are expected to diminish these reserves once more, highlighting the continuing challenges facing Bangladesh's foreign exchange market.