Bangladesh and Indonesia to sign a Preferential Trade Agreement (PTA) for strengthening economic ties.

Indonesian Foreign Minister Retno LP Marsudi and Foreign Minister AK Abdul Momen had reached conclusions on the establishment of the PTA between Indonesia and Bangladesh. Abdul Momen stressed a faster conclusion of the PTA with Retno Marsudi agreeing to his proposals. He further exclaimed the benefits of the mutual PTA directly affecting the trade and economic relations with both the foreign ministers reminiscing on the last five decades of trusted friendship and understanding between the two countries.

Momen further mentioned Bangladesh’s success with its low Covid-19 positivity rates, the Indonesian minister’s supportive role in the plight of Rohingya refugees through UNGA, etc, and Bangladesh’s belief in an inclusive Indo-Pacific intending global benefit.

RMG rings alarm amid fuel price hike as Covid spread in Europe

Even though Bangladesh has been seeing an increase in its RMG sector the prices are still not aligned with the increase in production costs yet. The BGMEA President demonstrated that the recent 23% increase in fuel prices along with raw materials would raise production costs by 4-5%. The retail prices, which already fell by 15% in the European markets, have led the BGMEA president to urge producers not to negotiate prices further to avoid a devastating effect on the living standards of garment workers affecting the whole economy and halting the recovery of the RMG sector. Besides asking for duty-free access, more investment was proposed to solve this crisis with greater efficiency- which had already been realized with increased exports and investments.

The domestic economy feels the heat as global inflation simmers

A rise in worldwide market prices has led to extraordinary price spikes for gasoline, energy, as well as intermediary and primary commodities- increasing the cost of production, shipment, and transportation in Bangladesh. Energy prices rose by more than 80% in 2021, according to the World Bank Commodity Markets Outlook, and are expected to hike again next year. With crude oil at its highest price in seven years- a rise in global fuel costs and the cost of irrigation is economically threatening the nation with inflation. Furthermore, tragedies in India wreaked havoc on its supply, which further raised the price of yarn and cotton. All threatening adverse impacts on businesses around the nation.

Frustration Rises in Turkey after record drop in Lira

The Lira, the currency of Turkey, has lost more than 45 percent of its value this year, and nearly 20 percent in the last week of November, continuing its downward trend at present. Economists remarked that President Recep Tayyip Erdogan’s insistence on directing monetary policy and sticking with low-interest rates is draining confidence. As Lira loses value, the purchasing power keeps on dropping, business grows stagnant and concerns over the affordability of basic goods and services continue to rise. The Confederation of Progressive Trade Unions statement encapsulates the sentiments of the general populace in Turkey regarding the economic policy of Erdogan: “That’s enough. We want to make ends meet,” it read. “Unemployment, high living costs, price increases, and bills are breaking our backs.”

Bangladesh to receive €330 million from France for development projects

Agency France Development (AFD), a development bank and cooperation agency based in France, will provide €330 million for the implementation of development projects in Bangladesh. Among those €330 million, €200 million will be allocated for budget support due to the Covid-19 pandemic, and the rest €130 million is for the Dhaka Environmentally Sustainable Water Supply Project, which is already under implementation. AFD's total support to Bangladesh now exceeds €1 billion - the largest amount of assistance provided to a South Asian country.