LC Surge, Wage-Earner Bonds, and International Ties in Focus

• Bangladesh Bank reduces the spread of primary dealer banks to boost the secondary bond market Source

• BB removes interest rate cap on Resident Foreign Currency Deposit accounts, providing rate flexibility Source

• LC Openings increased to $6.7 billion in September, signaling business recovery Source.

• Bangladesh issues cybersecurity warnings urging banks to strengthen their defenses against cyberattacks Source.

• Remittance inflows surge 21.32% year-on-year in October to $2.39 billion Source

• Govt removes investment cap on wage-earner bonds for Non-Resident Bangladeshis Source

• Bangladesh Bank imposes higher cut-off yields for various treasury tenures Source.

• Chattogram port reports mixed results with import handling up and export volumes down 13% in October Source

• Adverse weather impacts tea production, reducing expected yields Source.

• Chinese firm invests $35.03 million in Mongla EPZ to recycle garment waste ('Jhut') Source.

Economy

• LC Openings Rise in September: Letter of Credit (LC) openings surged to $6.7 billion in September, reflecting an upturn in business activity compared to the previous year Source

• Govt Eases Investment Cap on Wage-Earner Bonds: Non-Resident Bangladeshis can now invest unlimited amounts in wage-earner bonds, removing the previous limit of BDT 10 million Source

Banking

• Bangladesh Bank Tightens Control on Treasury Yields: Treasury bill yields for different tenures have been raised recently to address rising government borrowing requirements Source

• Banks Warned About Cybersecurity: The central bank urged banks to bolster security against cyber threats following recent incidents of illegal transactions via dual-currency cards Source

• Bangladesh Bank Reduces Spread for Primary Dealers: Bangladesh Bank has lowered the spread for primary dealer banks to stimulate the secondary bond market by tying the spread to bid-ask yields rather than prices Source

• Bangladesh Bank Withdraws Prescribed RFCD Interest Rate: The central bank has lifted the interest/profit rate cap on Resident Foreign Currency Deposit (RFCD) accounts, granting authorized dealers the flexibility to set rates Source

• BB to Lift LC Restrictions on Crisis-Hit Banks: Bangladesh Bank plans to relax LC margin requirements for six struggling banks to ease their financial pressure Source

• Deposits Through Agent Banking Rise: Deposits grew by 22% to BDT 398.13 billion in Q2 2024, with a focus on rural customer outreach Source

Trade & Commerce

• Bangladesh Reroutes Textile Exports: To ensure timely shipments, Bangladesh now routes textiles through Maldives instead of India Source

• Smartphone Production Up 27.58%: Local factories manufactured over 6.5 million smartphones from January to September, meeting 95% of formal demand Source

• Chattogram Port Sees Mixed Handling Results: While import container handling increased slightly, exports dropped by 13% in October Source

• Adverse Weather Hits Tea Production: Weather disruptions have reduced tea yields below targets, raising costs per kg above auction prices Source

• Duncan Brothers Divestment: The conglomerate plans to sell its stakes in United Insurance and United Finance to local business groups Source

International

• Trump's Win Influences Markets: The dollar surged and US stocks climbed following Trump's electoral victory Source

• BYD Expands Production and Hiring: China's BYD increased car production by 200,000 units and significantly expanded its workforce to support growth Source

• German Factory Orders Surge: German industrial orders rose by 4.2% in September, surpassing expectations and suggesting a potential manufacturing recovery Source

• Chinese Firm Invests in 'Jhut' Recycling: Xingchen Textile Co. is investing $35.03 million in Mongla EPZ for garment waste recycling, creating 600 jobs Source