The central bank of Bangladesh projected the payment obligation in the dollar currency against imports in the power sector at $1.0 billion for the four-month period from November last, official sources said.

The payment obligation has been set against import of capital machinery, and petroleum oil and the purchase of electricity from rental power plants, which are joint ventures with foreign companies.

Experts fear a negative impact of it on the dollar rate in the local money market, if such big payments coincide with other payments in the greenback.

The government has to pay $1.014 billion for a period of four months, as is projected by the import monitoring section of Bangladesh Bank's (BB) Foreign Exchange Policy Department (FEPD).

The expected payment obligation for the months of November, December, January and February is as follows: $ 124.18 million for importing capital machinery, $ 743.31 million for importing petroleum oil and $ 147.12 million for purchasing electricity from rental power plants run on joint venture with foreign companies, according to the BB statistics.

The annual import costs in the power sector are equivalent to about one-third of the hard-earned remittances expatriate Bangladeshis send home, official sources said.

The total remittance inflows stood at $12.85 billion in the last financial year (2011-12) against $11.65 billion received in the 2010-2011 fiscal year. But a large portion of it or about one-third was spent on imports in the power sector, especially for the rental power plants, they also said.

The government needs more or less $ 5 billion a year against the payment obligation for imports in the power sector to generate electricity, a BB official said.

But the power supply in the country did not improve to any significant level, though the government raised power tariff several times in the country.

A former BB official said the higher payment obligation or import payments might push up the demand for dollar widening its gap with the greenback's supply and thus it might raise the dollar price in the local money market.

News: The Daily Financial Express/Bangladesh/15th-Dec-12

China’s manufacturing activity hit a 14-month high in December, a further sign of a rebound in the world’s number two economy as domestic demand improved despite external weakness, HSBC said Friday.

The preliminary purchasing managers’ index (PMI) released by the British banking giant hit 50.9 this month, up from a final 50.5 in November, when the figure returned to growth after 12 consecutive months of contraction. A reading above 50 indicates expansion in the key sector, while one below signals contraction.

The index, compiled by information services provider Markit and released by HSBC, tracks manufacturing activity and is a closely watched barometer of the health of the economy.

The December reading is the highest since October last year, when the figure was 51, according to HSBC data.

China’s economic growth hit a more than three-year low of 7.4 per cent in the three months to September, but recent data reflecting domestic conditions including industrial output and retail sales has fuelled optimism that the worst is over.

But exports in November, which rose just 2.9 per cent year-on-year to $179.4 billion, came in much lower than market expectations, fanning concerns on the sustainability of the recovery. Qu Hongbin, a Hong Kong-based economist with HSBC, said the PMI figure “confirmed that China’s ongoing growth recovery is gaining momentum, mainly driven by domestic demand conditions”.

“However, the drop of new export orders and the downside surprise of November exports growth suggest the persisting external headwinds,” he added, saying Beijing was expected to keep policy loose to offset such impacts.

Authorities have cut interest rates twice this year and have also reduced the amount of funds banks must keep in reserve three times since last December to encourage lending. The country’s top leadership is expected to hold a key annual meeting on Saturday and Sunday that will lay out major economic policies and goals for the next year, Chinese media reported earlier this week.

The preliminary PMI is based on approximately 85-90 per cent of total PMI survey responses each month, HSBC said, adding that the month’s final reading will be released on December 31.

News: The Daily Independent/Bangladesh/15th-Dec-12

World Bank chief economist Kaushik Basu on Friday urged India to keep up its blitz of “promising” reforms, saying they can help the economy return to the nine per cent growth needed to combat poverty. The World Bank expects growth of Asia’s third-largest economy to be 5.5 per cent this calendar year, inching up to just short of six per cent next year and reaching close to seven per cent the following year, Basu said.

If the country stays on its “promising” reform path, he added, “it has enough fundamental strength there is no reason why India can’t get back to the eight to nine per cent growth” which it enjoyed in the second half of the last decade.
“If we can continue to push on reforms we can make a big difference to India,” Basu, previously chief economic adviser to the Indian prime minister, told an economic forum in New Delhi.

Basu’s remarks came as Finance Minister P. Chidambaram promised more steps to spur the economy, which has slowed sharply due to high interest rates and the global downturn, on top of a spurt of reform measures recently announced.

Late Thursday, the cabinet cleared changes to a century-old land acquisition law and established a panel to
be headed by Premier Manmohan Singh to fast-track projects to overhaul India’s dilapidated ports, roads and other infrastructure.

News: The Daily Independent/Bangladesh/15th-Dec-12

AKM Shafiqur Rahman, Deputy Managing Director of NBL, seen at a workshop on ‘Prevention of Money Laundering and Combating Financing of Terrorism’ at the bank’s training institute in Dhaka recently.

National Bank Limited (NBL) organised a workshop on ‘Prevention of Money Laundering and Combating Financing of Terrorism’ at its training institute in Dhaka recently.

AKM Shafiqur Rahman, Deputy Managing Director of NBL inaugurated the workshop as chief guest, said a press release Thursday.

News: The Daily Sun/Bangladesh/15th-Dec-12

Md Anisul Haque, Chairman of the board of directors of SIBL, presides over the 279th meeting of the bank at the corporate office of the bank in Dhaka Thursday.

Social Islami Bank Limited has organised the 279th meeting of the board of directors at the corporate office of the bank in Dhaka Thursday.

Md Anisul Haque, Chairman of the board of directors of SIBL, presided over the meeting, said a press release.

Directors of the bank, Managing Director (CC) Md. Shafiqur Rahman and senior executives of the bank were present.

News: The Daily Sun/Bangladesh/15th-Dec-12