- retrospectea
- Posts
- Central Bank Halts Dollar Sales – What’s Next for Forex Reserves?
Central Bank Halts Dollar Sales – What’s Next for Forex Reserves?
Fresh Weekly News Brewed for Your Mornings
☕️ RetrospecTea is your Weekly-Brew of Quick Highlights for a brief snapshot, and dive into the Detailed Insights section for a deeper understanding
— all perfectly paired for your morning tea!
Quick Highlights
Central Bank Cuts Dollar Sales: To safeguard forex reserves, the central bank reduced dollar sales dramatically, pushing banks to source from the interbank market. Source
Wages vs. Inflation: The growth of wages for unskilled workers fell short of inflation for 32 consecutive months, with a 2.53% gap in August. Source
Banking Oversight: Banks are now mandated to submit loan updates monthly to the Credit Information Bureau, bolstering monitoring efforts. Source
Malaysian PM's Assurance: Malaysia's PM assured that 18,000 Bangladeshi workers' entry would be expedited, highlighting investment and human resources cooperation. Source
Chattogram Port Trends: Export container volumes dipped in September, while imports rose slightly compared to August. Source
Egg Price Surge: Local egg prices spiked due to corporate practices, and imports were halted to protect the poultry sector. Source
Eurozone Inflation Falls: Inflation in the Eurozone dropped below 2% for the first time since 2021, with significant energy price reductions. Source
Oil Prices Spike: Global oil prices recorded the largest weekly gains since early 2023, influenced by Middle Eastern geopolitical tensions. Source
Non-Bank Defaults Climb: Non-bank financial institutions’ loan defaults hit record highs, with the sector freed from the SMART interest formula. Source
Remittance Boost: October saw increased remittance inflows, which helped stabilize forex reserves. Source
Detailed Insights
Economy:
Wage Growth Lags Behind Inflation: The September wage growth for unskilled labor in Bangladesh’s industrial, agricultural, and service sectors lagged behind inflation, as the latter surged to 9.92%.
Malaysian Investment & Workforce Agreement: The Malaysian PM assured expedited entry for 18,000 Bangladeshi workers, emphasizing the mutual benefits of human resource collaboration and ongoing investments in Bangladesh, totaling over $5 billion.
Banking:
Enhanced Loan Monitoring: The Credit Information Bureau's new directive requires banks to report monthly loan data, enabling improved borrower monitoring and response to repayment behaviors.
Dollar Sales Reduction: In an effort to protect dwindling foreign exchange reserves, the central bank cut its dollar sales significantly, necessitating banks to rely on the interbank market for foreign currency needs.
Trade & Commerce:
Chattogram Port Activity: Export container handling saw a slight decline in September, whereas import container volumes showed an upward trend.
Egg Imports Halted: Concerns over local poultry sector stability prompted the government to halt egg imports, as prices climbed to $0.13 per egg due to market factors.
International:
Eurozone Inflation Trends: Inflation in the Eurozone decreased to 1.8%, largely driven by a drop in energy costs, marking a potential shift in the European Central Bank's future policy on interest rates.
Energy:
Oil Market Surge: Oil prices surged due to geopolitical tensions in the Middle East, marking the largest weekly price gains in over a year.
Each week, we focus on bringing you Bangladesh's top stories from the economy, finance, business, and international relations — providing a curated selection of key highlights.