The central bank has intervened in the currency market to rein in growing inflationary pressure by selling 109million dollars in the inter-bank system in an attempt to strengthen the taka. Bangladesh Bank sources said the bank took the measures to stablise the currency at a time when there were large amounts of imports of food grains and petroleum. Md Yasin Ali, executive director of Bangladesh Bank said, the measures were ‘temporary.’

Bangladesh joined the Trans-Asian Railway (TAR) Friday, a move that would connect the country’s rail system to a 81,000km network stretching from Europe to East and South-East Asia. Signing the Intergovernmental Agreement on the Trans-Asian Railway Network makes Bangladesh the 20th signatory to the deal, but Dhaka would still need to sign bilateral agreements to make the TAR network operable.

Speakers at a seminar in Chittagong on Saturday expressed the optimism that Bangladesh would become a middle-income country within the next 10 years through proper planning, increasing agricultural production, and boosting the business and agro-industrial sector.

World Bank President Robert B Zoellick on November 4 said Bangladesh holds the potential to become an effective partner in the international market by utilising its human resources properly and developing its infrastructures in the apparel industry.

A Thailand-based private airline, Orient Thai Airlines, eyes to operate passenger flights from Dhaka, as the airline sees business friendly environment exists in Bangladesh. Orient Thai Chairman Udom Tantiprasongchai unveiled the plan during a meeting with travel agents in Dhaka on November 3 organised by Speed Aviation Limited. An agreement between Orient Thai and Speed Aviation has also been signed for doing feasibility study to operate passenger flights from Dhaka.

Four trade bodies including FBCCI have urged the government to reconsider its decision on cancellation of operation of a private inland container depot (ICD) at Chittagong Port on the plea to avert any further congestions at the country’s prime sea port.

Bangladesh has sought additional assistance from the World Bank (WB) for facing the economic challenges caused by global increase of prices of oil and food items and recent countrywide flood. “We expect enhanced budgetary support [from the World Bank] through increased transitional credit and project financing to meet the current challenges,” Finance and Planning Adviser Mirza Azizul Islam told reporters after meeting with WB President Robert B Zoellick.

The Bangladesh Knit Expo-2007, an exhibition of the country’s knitwear products, will be held in Toronto on October 30-November 1.

Reforms aiming at raising standard and efficiency had succeeded in bringing about a radical change in the Chittagong port activities in the last nine months, said Chittagong Port Authority (CPA) Chairman Commodore M Faruque yesterday.

The country’s banking sector experienced a declining trend in interest rates on deposits during the current month while the lending rates on banks credits remained almost unchanged. At least eight commercial banks have slashed their deposit rates while three banks raised their deposit rates in the current month, official sources said. The commercial banks have already cut their deposit rates by 0.25 per cent and 1.00 per cent apparently to discourage deposits as the banks have excess funds (liquidity).

State-run Titas Gas Transmission and Distribution Company Ltd has decided to offload its shares worth Tk 215.30 crore to the public through the stock exchanges. The decision of offloading shares was taken at an extra-ordinary general meeting (EGM) of Titas in Dhaka on Wednesday. Titas Chairman AMM Nasir Uddin, Petrobangla Chairman Jalal Ahmed and Titas Managing Director Md Abdullah were present at the EGM.
At the EGM, Titas also decided to raise its paid up capital to Tk 862.01 crore before offloading shares and the offering amount will be 25 percent of the paid up capital. Presently, the paid up capital of the company is Tk 190 crore. Titas will float a total of 21,550,335 shares to the public through Investment Corporation of Bangladesh (ICB).

Setting an export target of readymade garment (RMG) worth $15-18 billion dollars in next three years, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) is going to hold its three-day apparel and textile exhibition here on November 15. During the last fiscal (2006-07), the sector earned US$ 9.2 billion.

Foreign Secretary (FS) Touhid Hossain called upon the developed countries to provide duty-free and quota-free market access of all products from all least developed countries (LDCs) without any restrictions, reports UNB.

The government plans to invite Japanese, South Korean and Malaysian investors to invest in the country’s information technology sector to tap opportunities stemming mainly from WTO’s Information Technology Agreement (ITA). Now 70 WTO members including Bangladesh representing 97 percent of world trade in IT products are participants to the ITA. The signatories to the deal promised duty-free imports of IT products among themselves on a most-favoured-nation basis.

The Maersk Line, one of the leading main line operators in the world, is planning to invest in Bangladesh’s port infrastructure. The world’s shipping giant is going to construct a full-fledged modern private inland container depot (ICD) in the port city, which will support the country’s main Chittagong port to boost its cargo handing. Sources at the Maersk Bangladesh Limited said that it would invest at least Tk 2.0 billion for the construction of the ICD in the port city.

Dr Debapriya Bhattacharya, the newly appointed permanent representative of Bangladesh to the United Nations (UN) office in Geneva, yesterday urged business leaders for appointing a permanent representative at the UN office to ensure private sector representation in the WTO (World Trade Organisation) negotiations.

Top business leaders suggested that the proposed Bangladesh Better Business Forum should have higher representation from the private sector and be allowed to operate as a high-powered regulatory reform commission.

Finance Adviser Dr Mirza Azizul Islam Wednesday called upon the developed as well as developing nations to provide duty- and quota-free market access for all products from all LDCs (least developed countries) without any restrictions, reports UNB. He also sought full cancellation of all outstanding debts, both bilateral and multilateral, of all LDCs forthwith as the overall external debt situation of the LDCs remains a source of concern.

Nine banks and 13 financial institutions have so far signed participation agreements with the Bangladesh Bank to refinance Tk 3 billion housing loans. The banks are National Credit and Commerce Bank, Mercantile Bank, Prime Bank, Mutual Trust Bank, Trust Bank, Southeast Bank, National Bank, Asia Bank, and One Bank. The financial institutions are Delta Brac Housing, National Housing, IDLC, United Leasing, IIDFC, Lanka Bangla, Fidelity Assets, Midas Financing, Prime Finance, International Leasing, Peoples Leasing, Phoenix Finance, and GSP Finance.

The International Monetary Fund (IMF) has suggested adoption of a new strategy on the Rupali Bank divestment following delay by the Saudi prince to strike the final deal, sources said. Key steps are needed to advance the divestment programme of the National Commercial Banks (NCBs), including development of a new strategy for Rupali Bank divestment, said an IMF letter sent to the Finance and Planning Adviser Mirza Azizul Islam recently.