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A theory is appropriate as long as it fits into the fact; when a theory doesn't fit in the fact, it's wise to walk with the fact.

Monday, July 11, 2011

Another stimulus package for RMG?

So, the central bank announced to reduce the interest rate for 270 sick garment companies to 8.0% from as high as 15.0%, of which  5.0% will be paid by owners and the rest will be subsidised by the government. Of the 270 companies, 88 owe money to private commercial banks and 182 to the public commercial banks. The central bank also agreed to increase the Export Development Fund (EDF) from the existing $400 million and will reduce the export proceed time from an existing 120 days, so that the money comes into the country fast.

So, is this another stimulus package for RMG sector?

Here is the news link. 

pseudo-researchers and bad policies

Professor M.A. Taslim writes on the lack of appropriate economic research and its impact on economic policymaking with a proper example of recent share market debacle. He rightly points out to the rise in pseudo-researchers and their wrong policy suggestions (does not matter whether politically/financially motivated or not) on important policy issues including stock market. Another good one from Professor Taslim.

Here is his published piece in the Financial Express

Wednesday, July 6, 2011

BB on BoP

So, Bangladesh Bank (BB) finally and rightly takes its stance on balance of payments (BoP) situation, Bangladesh and makes a few suggestions to the government how it can pursue its fiscal policy. Well, BB asked the government to be 'conservative' while implementing fiscal policies. Good one!

A report on this in the Financial Express. 

Tuesday, July 5, 2011

Dollar getting costlier

US$ is getting costlier in the curb market, is being sold between Tk77.5 and Tk78.0 compared to around Tk75.0 for banks. Sajjadur Rahman from the Daily Star made a report on it explaining a few reasons and its impact. 

Here is the report. 

Tax collection surpassed target

The National Board of Revenue (NBR) exceeded its tax collection target for FY2011 by nearly Tk27.0 billion to Tk783.0 billion, on account of great efforts put in by tax officials. The NBR tax revenue collection in FY2010 was Tk597.0 billion. 

Here is the news. 

$11.7 billion remittance inflows in FY2011

Despite gloomy global economic environment and declined growth in overseas employment for Bangladeshi workers, remittances sent by Bangladeshis working abroad reached $11.7 billion in FY2011, a record highest in a single fiscal year, with a growth of 6.0% over the previous fiscal.

Monday, July 4, 2011

Dr. Mujeri on BB

Dr. Mustafa K. Mujeri writes on BB's monetary policy regarding exchange rate management, published in the Financial Express.

Here is the link!