No worry about forex reserve: Atiur

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Author / Source : independent online/bdnews24.com

Dhaka: Amid press reports that the country's forex reserve is dwindling fast due to increased import spending, the central bank governor says there is nothing to be worried about it.

Talking to bdnews24.com on Sunday, Atiur Rahman said the pressure would go soon as the import costs had been showing downtrend since June.

"Banks have enough dollars. We're encouraging the local enterprises to borrow from foreign sources, too," he added.

According to a bdnews24.com report published on Saturday, the central bank found itself in a tight spot due to consistent increase in import spending and decrease in the value of Taka against dollar.

In response to the report, Atiur said, "It's right there's a pressure on reserve for the unusual hike in import cost, but there is nothing to be worried about it.

"The import spending has been showing a downtrend since June. I hope it'll continue. The flow of remittance is registering an uptrend…the export sector is also positive. All these would help remove the pressure," he said.

The governor said the foreign currency reserve, which decreased to $10 billion on Thursday from the last week's $11 billion, stood at $10.1762 billion on Sunday morning.

"There'll be no problem to foot the import bills during the next three and a half months," he said.

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PM surprised at Khaleda's remarks about Constitution

Prime Minister Sheikh Hasina said she is amazed at opposition leader Khaleda Zia's 'indecent' remarks about the Constitution, reports UNB.

Khaleda Zia at the BNP-sponsored mass hunger strike Wednesday stated that the amended (15th) constitution is nothing but AL manifesto which will be thrown away, if BNP returns to power.

"How can she make such an indecent remark about the Constitution? She is the Leader of the Opposition in parliament and enjoying facilities of a full minister on the basis this Constitution," Hasina said.

The Prime Minister came up with her observations when the newly elected central working committee of Institution of Diploma Engineers, Bangladesh (IDEB) met her at the Prime Minister's Office (PMO) Thursday morning.

IDEB president AKMA Hamid and general secretary Shamsur Rahman led the delegation. State Minister for ICT Yafes Osman also spoke on the occasion.

The Prime Minister said such remark about the Constitution is only possible from the opposition leader as she and her party always think about grabbing the state power through coup, killing and conspiracy.

"Her husband Ziaur Rahman had grabbed the state power through killing and coup. So, it is not unusual that a military dictator's wife would make such remarks," Hasina observed.

She said the anti-liberation forces would not be able to protect the corrupt and the killers Ivy Rahman and other Awami League workers killed in the August 21 grenade attacks.

"The money launderers and the killers would not be spared. They must be brought to book," she said.

The Prime Minister said the military dictators and anti-liberation forces had distorted the Constitution after killing Father of the Nation Bangabandhu Sheikh Mujibur Rahman on the fateful night of August 15, 1975.

"After returning to power through people's votes, we have been able to free the Constitution of stigma by amending the Constitution," she added.

She said the Opposition Leader and her party do not need to have any Constitution as they are accustomed to grab state power through illegal means.

Hasina also accused the opposition leader and her party of trying to save the culprits of the August 21 grenade attack, the war criminals of 1971 liberation war and her sons from serious charges of corruption and money laundering.

The war criminals would also be tried, she reiterated.

Hasina said after killing of Bangabandhu, Ziaur Rahman set free all the war criminals and rehabilitated them.

"She (Khaleda Zia) also made the killers MPs and provided them jobs in the foreign missions," the Prime Minister said.

During the August 21 grenade attacks, Hasina said law enforcing agencies charged batons on the victims instead of protecting the people and trying to arrest the attackers.

The Prime Minister reiterated that her government would never allow any terrorist activity in the country.

She told the engineers that the nation needs skill and hard labour of the engineers to drive the country to the peak of development.

Hasina said the nation does not want to remain dependent on others. "We want to establish Bangladesh as self-reliant in all sectors."

The Prime Minister said Awami League-led grand alliance government has come to power to work for economic emancipation of the people.

"To us, power is not a means of amassing wealth. We have been voted to power to change fate of the people," she said.

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B�desh upbeat about getting EU waiver on mandatory shrimp test

Monira Munni

Bangladesh is hopeful of getting a waiver on the EU's mandatory shrimp testing requirement after its FVO gave a green signal to the country's action plan on complying with their recommendations including testing facilities, officials and exporters said Wednesday.

The European Union (EU) last year imposed a 20 per cent mandatory testing requirement on each shipment of shrimps from Bangladesh as part of its rigorous quality control drive.

It said a Food and Veterinary Office (FVO) team from the regional bloc, which ended its visit, has sent its final report this week marking four preliminary reports' recommendations satisfactory.

"It is concluded that improvements were seen in the residue monitoring system, particularly in the laboratories. In contrast to the findings in 2010, the analytical methods used for the residue monitoring programme on crustaceans and for the pre-export testing are now validated and fit for purpose," the report said.

Referring to the report, Dr J Kwakman, president of Europe-based Seafood Importers and Processors Alliance (SIPA), said Bangladesh would get special preference for withdrawing the 20 per cent mandatory tests in laboratories on its shrimp consignments in EU ports as the authorities are happy to see massive development and monitoring of quality control measures taken by its government.

Mr Kwakman said this at a luncheon meeting with the government officials and exporters on June 21 in the city. He is now in Bangladesh on a five-day business tour to be concluded on June 25.

A three-member FVO team has reviewed the country's present situation of residue control in live animals and animal products and the control mechanism for veterinary medical products -- steps seen as critical for export of shrimps to the EU.

The team has also reviewed the implementation of public health and residue control requirement in aquaculture products from root level to the production level, so that health hazard causing agents or drugs cannot enter the bodies of shrimps meant for export, exporters said.

Mahbubur Rahman, director general of Department of Fisheries, said, "The final report is the green signal ahead of the country's way towards getting a waiver on the EU's 20 per cent stringent testing requirement."

Last year, the team gave 12 recommendations, while this year it suggested only four which also proved our improvement, he added.

"The FVO is satisfied and thanked the government for the measures taken by it," he said adding, "now we are confident that the EU will withdraw its decision on mandatory shrimp testing requirement very soon."

The FVO team was impressed by the improvement in the country's quality control system and expressed its satisfaction in its report, said Mohammad Aminullah, senior vice president of Bangladesh Frozen Food Exporters Association (BFFEA).

"Shrimp exporters were able to overcome the country's image crisis over the 'nitrofuran issue' and we have also improved our laboratory testing capacity to be able to comply with the EU's quality requirements," he said adding, "It is a matter of time to get the waiver on stringent testing requirements."

Bangladesh exported frozen fish worth $565.10 million during July-May of the current fiscal year. The EU is the largest importer of Bangladesh shrimps, accounting for as much as 50 per cent of the shipment.

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SEC 'serious' about bringing stability to stock market

Mohammad Mufazzal

The securities regulator has taken a series measures including the expansion of daily transaction volume and flotation of fresh shares in an effort to restore stability to the stock market, its chief said.

It also has started investigation into its officials' activities during the share market debacle as well as into the role of the persons allegedly active at that time after the ministry of finance issued directives in line with the recommendations of the share scam probe committee.

Professor Dr. M Khairul Hossain, chairman of Securities and Exchange Commission (SEC), Wednesday told this to the FE while speaking about the developments after the recast of SEC.

"The restoration of stability to the market is a big challenge for us, as thousands of investors are looking forward to the regulator," Mr. Hossain told the FE.

The SEC chief said the market would not return to a reasonable position unless the daily turnover touches the mark of Tk 15 billion a day.

"That's why we are trying to increase the trade volume in both the stock markets of the country," he said.

For more than two months, the average daily turnover of Dhaka Stock Exchange (DSE) can't exceed Tk 4 billion, whereas in last October-November the average turnover was about over Tk 20 billiom.

Mr Hossain said the regulator is also trying to increase the purchasing power of merchant banks in their own portfolios, so that the market can overcome its liquidity crisis.

"We are trying to increase the purchasing power of merchant banks through some ways including investment by non-resident Bangladeshis," he added.

Mr Hossain also stressed coordination between the central bank and the securities regulator.

"Before the coordination meeting, which was supposed to be held today (Wednesday) at the office of Bangladesh Bank, I will talk to its high-ups on how to ease the liquidity crisis," he said.

Coming to paving the way for offloading fresh shares, Mr Hossain suggested asking the companies, which already completed road-shows to go public under book building, to review their offer prices as it would take more time to rectify the method.

"It will take about six months to bring changes to the book building method as we will have to take opinions of different stakeholders and experts for the purpose," he said.

He added that in such a situation, the regulator would ask the companies, which have yet to go public under book building method, to revise their offer prices.

In January last, the government postponed the book building method following a road-show bonanza for fixing very high prices for their shares to go public. As a result, a huge amount of money was siphoned off from the stock market, creating a liquidity crisis.

However, the SEC chairman said they would stress reasonable prices, which would match with company fundamentals.

"Some quarters sold their ten Taka shares at Tk 185 through private placement. The absurd situation may be enacted again if the regulator allows the companies to sell shares at such high prices," Mr Hossain said.

He said it would not be positive for the market if the regulator waited for changes in book building method.

"However, a committee has been formed to find solutions to offloading the shares in the light of review and coordination," he said.

He also said the regulator would keep watch so that investors get facilities with the flotation of the shares of state-owned enterprises under direct listing method.

When asked about the compliance of the directives issued by the ministry of finance (MoF) regarding further investigation into alleged irregularities, he said, "by this time, we have formed committees to carry out further investigations into some alleged irregularities occurred during the recent stock market scam."

Mr Hossain said the regulator has also started investigation against all officials of SEC following a directive by the MoF.

On June 6, the government issued a directive to investigate into the alleged "irregularities and manipulation" by nearly 1000 high officials and employees of the securities regulator and the state-owned Investment Corporation of Bangladesh (ICB) through their involvement in the recent share market scam.

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