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Bangladesh needs to dismantle its international gateway monopoly, which makes international calls hard to complete and excessively expensive, said a study sponsored by the GSM Association. (Global System for Mobile Communication.)
   The study conducted by economic consultant CRA International and law firm Gilbert and Tobin for the GSM Association found that dismantling the monopoly would lead to a major rise in call volume and a 125 per cent increase in government revenue from international gateway services in 2008.
   The GSM Association is the global trade association representing more than 700 GSM mobile phone operators in 218 countries and territories of the world.
   Boosting the capacity of the existing international gateway, which is run by the state-owned Bangladesh Telegraph and Telephone Board, and then opening this market up to other companies, is urgently needed, as the study found that the current situation is causing a substantial loss for Bangladesh, said the study.
   ‘The existing monopoly limits communications between Bangladesh’s businesses and their international customers and also between Bangladeshis and their relatives and friends in other countries,’ it observed.
   The study also recommended the strengthening of the Bangladesh Telecommunications Regulatory Commission so that it can allocate spectrum and issue licences for 3G mobile services more efficiently before the third quarter of 2008.
   ‘Bangladesh could be the biggest surprise by the next few years in the area of telecommunications if it could overcome some regulatory bottlenecks,’ said Ricardo Tavares, senior vice-president of public policy in the GSM Association, at a press conference on Thursday while he was discussing the recommendations of the study.
   He said Bangladesh is performing far below its potential compared to other counties in the region despite achieving a tremendous growth of the mobile phone sector.
   He said the number of mobile phones might reach 30 million at the end of this year with around 20 per cent penetration rate. According to Wireless Intelligence, Bangladesh has a mobile penetration rate of 15 per cent, which is significantly lower than that of many other Asian countries
   Another priority identified by the study is to give adequate fund and budgetary authority to BTRC to enable it to act independently and acquire and retain appropriate expertise, particularly in the vital areas of spectrum management and licence enforcement.
   The study found that the current licensing regime allocates spectrum in an inefficient way and some of the country’s mobile operators do not have sufficient spectrum to enable them to provide services to more Bangladeshis.
   The authors of the study recommend that BTRC should conduct an immediate strategic spectrum review and then allocate spectrum in the internationally harmonized 2,100 MHz band for 3G mobile services before October 2008. ‘This spectrum should be licensed in a way that reflects its economic value and ensures that it is efficiently used,’ the study argues.
   The study also made several additional recommendations, including restructuring taxation to encourage growth in mobile usage and keeping the import duty of telecommunications capital equipment no higher than 5-6 per cent.

The Asian Development Bank has revised its lending rates for both its US dollar and Japanese yen single currency pool-based loans.
   The bank sources said on Thursday for the period from July 1, 2007 to December 31, 2007, the lending rate for US dollar pool-based loans would increase from 5.91 per cent to 6.34 per cent.
   This reflects the average cost of borrowings-5.94 per cent per annum from January 1 to June 30 this year plus a spread of 0.40 per cent per annum (representing a lending spread of 0.60 per cent less a waiver of 0.20 per cent).
   During the same period, the lending rate for the Japanese yen pool-based loans will change from 1.31 per cent to 1.69 per cent.
   This reflects the average cost of borrowings for the pool (1.47 per cent) less net of profit on early redemption of borrowings (0.18 per cent)-1.29 per cent per annum from January 1 to June 30 this year plus a spread of 0.40 per cent per annum (representing a lending spread of 0.60 per cent less a waiver of 0.20 per cent).
   ADB has also announced its rebate for its London Interbank Offered Rate (LIBOR) based loans for the period January 1 to December 31 this year.
   For US dollar LIBOR-based loans with a rate of LIBOR plus 0.40 per cent, the rebate will increase from 0.30 per cent to 0.31 per cent.
   This reflects the average sub-LIBOR cost of borrowings during the period of January 1 to June 30 this year.
   For Japanese yen LIBOR-based loans with a rate of LIBOR plus 0.40 per cent, the rebate will increase from 0.36 per cent to 0.45 per cent.
   This reflects the average sub-LIBOR cost of borrowings during the period of January 1 to June 30 this year, and includes profit on the early redemption of borrowings that are passed on to borrowers.

China’s said Thursday that nearly 6,000 firms were suspected of trying to illegally bring funds into the country to cash in on the expected rise of the Chinese currency, the yuan.
   The State Administration of Foreign Exchange said it would step up monitoring of export receipts for fake transactions intended to disguise the entry of speculative funds.
   ‘Over recent years, continuous large inflows of foreign funds have increased the imbalance in the international payments as well as the appreciation pressure in the yuan currency,’ it said in a statement on its website.
   ‘We will effectively prevent illegal inflows of foreign funds through the trading channel and strengthen the oversight of cross-border flows of money.’
   The agency said that there were 5,775 export firms to be ‘of concern’ in this regard, and their foreign exchange dealings were under surveillance.
   It said it had this month launched an information sharing system among its branches across the country that allows for the checking of names and bank accounts of the firms under scrutiny.
   The administration did not say whether all the firms were Chinese.
   Last month 29 banks, 10 of them foreign, were disciplined by the government for helping funnel speculative foreign capital disguised as trade or investment into China’s stock and real estate markets.
   China has this year undertaken a range of measures designed to discourage inflows of money, including a reduction in rebates and other export incentives, in an effort to stem the expansion of the nation’s trade surplus.

The Bangladesh Export Processing Zone Authority will go for aggressive marketing this year to attract investment in three EPZs that remain under-utilised, BEPZA chairman said.
   The EPZs are Mongla, Ishwardi and Uttara in Nilphamari district.
   ‘We’ll take an aggressive approach to attract both domestic and foreign investments in these EPZs,’ BEPZA chairman Brig Gen Ashraf Abdullah Yussuf told a press briefing at his office on BEPZA’s activities in the just concluded fiscal 2006-07. The BEPZA chairman identified the lack of gas and airport facilities as major obstacles to investment and the cause for the poor investment scenario at Mongla and Uttara EPZs.
   Despite gas facilities at Ishwardi EPZ, Yussuf said the expected investment is not materialising there either.
   ‘We have to go for an aggressive marketing campaign,’ he said.
   So far a total of $1.13 billion has been invested in eight EPZs in the country, according to BEPZA. Of this, $152.37 million was invested in the immediate past financial year, an increase of 35 per cent over FY 2005-06’s $112.89 million.
   Some 49 industrial organisations signed agreements worth $566 million with BEPZA during FY 2006-07. This investment will come into force in the current fiscal year. Replying to a query, BEPZA chairman said the export target for EPZs for the current fiscal is $2.3 billion, up from $2.06 billion in FY 2006-07 and $1.83 billion in FY 2005-06.
   Speaking of BEPZA’s activities as affected by industrial labour issues, Ashraf Abdullah Yussuf said he took the office last year in a situation of serious labour unrest.
   ‘Now there is no labour unrest. They (the workers) are getting their due payments with all sorts of benefits, including provident fund, leave and other allowances,’ he said.
   Wage increases alone had cost the Dhaka and Chittagong EPZs Tk 252 crore in FY 2006-07, said the chairman
   According to official data, some 2.01 lakh workers are employed in the EPZs and 23,000 were added in the immediate past fiscal year.
   BEPZA has also taken steps to set up two power plants to avert the power crisis that costs investors hugely, Yussuf told the briefing.
   ‘Already a water treatment plant has been set up in Chittagong EPZ,’ he added.
   Further initiatives, including recruitment of manpower and strengthening BEPZA’s IT capacity, are also being taken to support the investors, he said.

A 16-member delegation of the Women Entrepreneurs’ Association, Bangladesh, led by its president Sabrina Islam, left Dhaka on Thursday for Karachi on a five-day visit to Pakistan at the invitation of the Karachi Chamber of Commerce and Industry.
   The women entrepreneurs will exhibit Bangladeshi products at the first KCCI-WEA Expo in Karachi, organised by the Karachi Chamber of Commerce and Industry.
   The KCCI has arranged the exhibition to promote joint ventures, initiate partnerships, exchange technical knowledge and expertise, and further increase the bilateral trade between Bangladesh and Pakistan.
   The KCCI-WEA Expo also expects to bring the women entrepreneurs of the two countries at the same platform to make coordinated efforts for more active participation in the economic growth. The Women Entrepreneurs’ Association, Bangladesh, registered in 1993, has been supporting the women entrepreneurs of the country with global market information, marketing policy and skill development trainings.

Experts at a workshop on Thursday called for using eco-nephron system, an environment friendly Japanese technology, to clean lubricating oil of engine.
   They made the call at the seminar styled ‘Eco-nephron System: A New Technology from Japan’ at the CIRDAP auditorium in Dhaka, organised by Sumimoto Scientific Institute Co Ltd of Japan in collaboration with the Sustainable Habitat Environment and Economy, and Bannichi Enterprise Ltd of Bangladesh.
   Professor Sumimoto, president of Sumimoto Scientific Institute, presented a keynote paper on the eco-nephron system, and Rakibul Hassan presented a paper on the contributions of Auto Road and Water Transport to Environment Pollution in Bangladesh prepared by Ainun Nishat, country representative, IUCN Bangladesh.
   Professor Sumimoto elaborated on lubricating oil dialysis system for automobiles, marine, generator, and other heavy engine for optimal engine health, energy saving and reduction of CO2 emission in his paper.
   He said, ‘This system makes oil change easier. One needs to install a hose with a coupler attached to the end of a vehicle’s engine drain plug. The hose needs to be taken from the dialysis system and attached to the both ends of the drain plug. After installing the system, the vehicle will have to refill purified oil in within five minutes.’
   ‘This system will reduce waste of oil and cause environmental and economic benefits. Through this system, the engine will maintain its high initial performance, save energy and reduce carbon-dioxide emissions.’
   Ainun Nishat in his paper said, ‘Air pollution causes death of around 15,000 people in Bangladesh each year. IUCN stresses the 3R technology — reduce, recycle and reuse. The nephron system contains the 3R technology. It is environment-friendly and economical.’
   Among others, Environment and Forest secretary AHM Reazul Kabir, and DCCI president Hossain Khaled, also spoke on the occasion. SHEE chairman Ghulam Murtaza presided over the seminar. AHM Reazul Kabir said, ‘This system will play a role in reducing environmental pollution in Bangladesh.’
   Professor Sumimoto’s father Sumimoto Seiji of Japan invented the technology in 1965.

The Reserve Repo auction for the commercial banks and financial institutions was held at the Bangladesh Bank head office on Thursday. Eighteen bids of the 3-day tenor amounting to Tk 1148.00 crore were received and all the bids were accepted. The rate of interest against the accepted bids was 6.50 per cent per annum.

Thailand’s consumer confidence slid to a new five-year low in June amid concern over export growth as the local currency hit a fresh 10-year high against the dollar, researchers said Thursday.
   The consumer confidence index slipped to 76.8 points in June from 76.9 points in May, marking the lowest since March 2002, according to the University of the Thai Chamber of Commerce.
   The index has been mired below 100, which indicates pessimism among consumers, for 35 straight months, it said, adding the Thai baht’s rapid rise against the dollar was among key factors pressuring consumer sentiment.
   The bath has continued to hit a new 10-year high against the US unit in line with brisk performance in the kingdom’s stock market, which jumped to a 10-year high earlier in the month.
   The strong baht makes Thai exports less competitive abroad and cuts the value of firms’ repatriated profits.

China will work harder to cut the nation’s fast-expanding trade surplus, the commerce ministry said Wednesday, a day after data showed the balance hit an all-time high in June.
   ‘We will continue to take measures to reduce the trade surplus and expand imports so as to realise more balanced trade,’ ministry spokesman Wang Xinpei told reporters.
   Wang added the government was also looking into some financial measures to boost imports but he did not explain what those measures would be.
   China announced on Tuesday that the trade surplus for June soared 85.5 per cent to hit a record monthly high of 26.91 billion dollars.
   In the first six months of the year, the trade surplus jumped 83.1 per cent to 112.53 billion dollars.
   Wang attributed the dramatic jump in June to manufacturers rushing to ship orders before a range of export tax rebates were slashed or removed on July 1.
   China announced on June 19 that it would cut or remove export tax rebates for 2,831 commodities, or a third of total exports, from the beginning of this month in another effort to bring some balance to the trade account.
   Wang said the trade surplus growth was expected to slow in the second half of 2007 but he did not give any forecast for the full year.
   ‘We expect the growth rate in the second half of the year will slow down, which is what we would like to see,’ he said.
   China’s top economic planning said in May that the trade surplus was likely to hit 250-300 billion dollars in 2007, up from a record 177.5 billion dollars last year and a massive increase from 31.98 billion dollars in 2004.
   The surplus has been a constant source of friction with its major trading partners, mainly the United States and the European Union, where jobs have been lost as industries have been unable to compete with cheap Chinese imports.
   Beijing has been routinely accused of keeping the Chinese currency artificially low to make its goods cheaper, giving its exporters an unfair competitive edge as a result.

President Luiz Inacio Lula da Silva and British prime minister Gordon Brown talked over telephone Tuesday about global trade and Brazil’s bid to join the UN Security Council, a presidential aide said.
   Referring to the stalled Doha round of World Trade Organization talks, Lula said ‘Brazil could make a better offer if the European Union and the United States are more flexible in theirs,’ the official said.
   Lula was referring to a meeting last month of the so-called G4 — including the European Union, United States, Brazil and India — that failed to revive the Doha round of talks.
   As leader of the G20 group of emerging economies, Brazil demanded an end to agricultural subsidies by developed nations, who in turn seek greater access in developing markets for their industrial goods.
   Brown, who last month succeeded Tony Blair as prime minister, in turn supported Brazil’s bid for a permanent seat on the UN Security Council — which currently has five permanent, veto-wielding members — Britain, China, France, Russia and United States.
   The British leader also supported having a ‘more consistent’ system of consultations between the Group of Eight leading industrial nations plus Russia and large developing nations such as Brazil and India, the official added.
   Lula and Brown also talked about increasing cooperation with African countries, where Brazil is seeking a market for its bio-fuels.

Sharp differences appeared Wednesday between Germany and France after chancellor Angela Merkel dismissed calls by French president Nicolas Sarkozy for a brake on the euro’s rising value.
   ‘I do not agree. I really do not want to go down that road and neither does the German government,’ Merkel told RTL television late Tuesday in response to Sarkozy’s call for steps to reign in the record-breaking euro.
   She also made it clear that the independence of the European Central Bank, which has been accused of sacrificing growth to keep inflation in check by repeatedly raising interest rates, remained sacrosanct to Berlin.
   ‘Of course one can always say that one would like to do this or the other, but it is important to protect people against inflation,’ Merkel said.
   ‘For this reason the independence of the European Central Bank is of vital importance.’
   The chancellor touched on a thorny issue that made headlines during the recent French election in which both Sarkozy and Socialist rival Segolene Royal made remarks that appeared to call the ECB’s independence into question.
   Since being elected, Sarkozy has abandoned talk of reigning in the Frankfurt-based bank’s powers, but he still wants to expand the influence of eurozone finance ministers in the Eurogroup on exchange-rate policy.
   A mission statement by Sarkozy to French economy minister Christine Lagarde for a ‘European economic government’ released on Wednesday underscored that he too was sticking to his guns.
   With the euro at a record high above 1.37 dollars, France is increasingly frustrated by the negative impact of the strong currency on its exports.
   Moreover, the ECB is believed set to raise key interest rates further in September or October, a move that would help curb inflation but likely push the euro higher against the dollar.
   German finance minister Peer Steinbruck said in an interview to appear Thursday that Germany did not have a major problem with the euro’s current level.
   While it handicapped some German exporters, ‘in general, the German economy has become so much more competitive in recent years that is is much less sensitive than before to variations in exchange rates,’ Steinbruck told the daily Suddeutsche Zeitung.
   ‘In addition, two-thirds of Germany’s foreign trade is with Europe,’ he added.
   ECB chief Jean-Claude Trichet told the European Parliament on Wednesday that the best forum for exchange rate discussions was regular meetings of the Group of Seven industrialised nations.
   ‘We are in a floating exchange system and we have a way to discuss those matters, which is the G7,’ Trichet said.
   In an impassioned address to EU lawmakers, Trichet stressed: ‘All governments in Europe have said that they would respect the independence of the central bank. Independence is the absolute key for our credibility.’
   But Sarkozy has nonetheless instructed French economy minister Christine Lagarde to draw up a proposal for a ‘European economic government’, according to the mission statement.
   ‘In consultation with our partners, you will fix a target of establishing a European economic government, for the eurozone in particular,’ the statement said.
   ‘Eurozone member countries must first seek greater convergence of their economic policies. They must then be able to hold a real dialogue with the European Central Bank to provide the eurozone with a monetary strategy,’ it added.
   The disagreement between Berlin and Paris over the euro comes as the two neighbours brace for a potentially bruising meeting in Toulouse, southern France next week over the future of the European aerospace giant EADS.
   The meeting, which is to include both Merkel and Sarkozy, could see a shake-up of the company’s dual German-French management, widely regarded as making decision-making cumbersome and slow.
   Sarkozy has said EADS should become a ‘normal company’, implicitly criticising the dual management system, but Merkel was reported this week to have complained that the French want to put their interests first.

South Korea on Thursday raised its key interest rate for the first time in almost a year in an attempt to curb high liquidity growth and keep inflation in check as the economy recovers.
   At its monthly rate-setting session, the Bank of Korea increased the July target for the call rate by 0.25 percentage point to a six-year high of 4.75 per cent.
   The call rate, the interest on overnight inter-bank loans, had been left at 4.5 per cent since September 2006 in an attempt to spur economic growth amid subdued inflation.
   ‘We took the view that a rate hike will be better for the broader economy, given prospects for the real economy, high money supply growth and the stock market boom,’ said central bank governor Lee Seong-Tae.
   He said high levels of liquidity have persisted in the financial system even after a series of measures to soak them up.
   ‘In the financial markets, money supply growth has accelerated since the fourth quarter of last year amid a sharp
   increase in bank loans to small and medium sized enterprises,’ Lee said.
   He said rising oil and other raw material costs would start creating inflationary pressure even though consumer prices currently remain stable.
   Inflation was 2.5 per cent in June due to global oil price rises, accelerating from 2.3 per cent in May. However it remained within the central bank’s target band of 2.5 per cent to 3.5 per cent for 2007-09.
   Money supply growth rebounded in May. The outstanding liquidity aggregate expanded 1.3 per cent month-on-month to 1,913.5 trillion won ($2.08 trillion) as of the end of May after rising 0.7 per cent in April.
   Lenders have been turning to smaller companies to offset a decrease in their mortgage business following government curbs aimed at holding down property prices. In the first half of this year, new loans to smaller companies rose 1.7 times from a year earlier.

The 13 nations sharing the euro are set to enjoy sustained growth, but the European Central Bank may need to act against inflation pressures, ECB chief Jean-Claude Trichet said Wednesday.
   ‘The conditions are in place for the eurozone economy to continue at a sustained rate,’ Trichet told the European Parliament.
   Long the laggard of the world economy, the eurozone is widely expected to outpace other major economic powers this year despite high oil prices, rising interest rates and a soaring euro.
   However, Trichet warned there was ‘no room for complacency’ regarding inflation because ‘the outlook for price stability over the medium term remains subject to upside risks.’
   Trichet singled out ‘stronger than expected wage developments’ as a growing source of fuel for inflation, which the ECB strives to keep to less than but close to 2.0 per cent on an annual basis.
   The ECB has raised eurozone borrowing costs a total of eight times since December 2005, each time by a quarter of a percentage point, as it tries to keep a lid on inflation.
   Last week the ECB held eurozone borrowing costs steady at 4.00 per cent but Trichet hinted that the Frankfurt-based central bank could raise its key interest rates again in September or October.
   ‘Firm and timely action continues to be warranted to ensure price stability over the medium term and the governing council will continue to monitor all developments to ensure that risks over the medium term do not materialise,’ he told the parliament.

The Bank of Japan on Thursday left its super-low interest rates on hold for a sixth straight meeting, opting to wait for further evidence that the economic recovery is taking root.
   But the vote was split 8-1, with one policy board member calling for a quarter-point rate hike — underpinning expectations of another rate rise within the next couple of months.
   Atsushi Mizuno, who has a reputation for being a policy hawk, opposed the decision to leave the overnight call rate at 0.5 per cent, where it has been since February.
   BoJ governor Toshihiko Fukui provided few obvious clues on when the central bank might raise its interest rates, which are by far the lowest out of the major economies, contributing to the weakness of the yen.
   He reiterated that the central bank would adjust interest rates gradually but said the policy board members wanted to be sure that the economy will continue to enjoy robust growth before making their next move.
   ‘It is highly probable that the Japanese economy will take a path of sustained growth,’ Fukui told a press conference.
   ‘We will increase the level of rates gradually in line with the improvement in the economic and price situation, while reviewing risk factors.’
   Overall the BoJ chief appeared to be more upbeat than at the time of the June meeting, analysts said.
   His comments were ‘somewhat more hawkish than last month,’ noted Hiromichi Shirakawa, chief economist at Credit Suisse in Tokyo.
   ‘We believe that the risk of the BoJ postponing a rate hike until the fourth quarter has more or less gone,’ he said.
   Fukui said that household consumption ‘is well supported’ and while industrial production is relatively flat the long-term trend is positive.

Fresh troubles in the subprime segment of the US housing market have reignited fears of contagion that could affect the broad financial sector and possibly the broader economy, analysts say.
   Those fears were fanned this week as rating agencies Standard  Poor’s and Moody’s both warned of potential credit downgrades for bonds backed by subprime mortgages, which could affect investors and banks that issued the obligations.
   ‘New data reveals that delinquencies and foreclosures continue to accumulate at an increasing rate,’ SP said.
   ‘We see poor performance of loans, early payment defaults, and increasing levels of delinquencies and losses.’
   The news triggered a slide in the US dollar and Wall Street shares on Tuesday as investors reassessed their exposure to risky assets like mortgage-backed securities.
   Subprime loans that flourished during the last part of the housing boom provided mortgages to people with poor credit histories, often allowing them to buy homes beyond their means through low ‘teaser’ rates.
   Many of the loans with adjustable rates or interest-only payments for the first year or two are being recalculated higher, making payments harder.
   Industry figures showed the delinquency rate for all mortgages at 4.84 per cent in the first quarter but 13.77 per cent for subprime loans. Foreclosures were taking place at 0.58 per cent of properties, but 5.1 per cent for subprime.
   David Kotok, chairman at Cumberland Advisers, said the billions of dollars in problem loans could have a major economic impact.
   He said the slump in housing is already affecting some firms like Home Depot, the big home-improvement retailer. And he said some hedge funds that invested during the property boom are now in trouble too.
   ‘Housing finance is huge. Hundreds of billions of debt instruments are involved in this deterioration,’ Kotok said.
   ‘We have seen hedge funds stop funding withdrawals and we have seen hedge fund sponsors attempt to stem the tide with capital infusions Bear Stearns. There is much more bleeding to come.’
   Some fear that the subprime crisis will prompt lenders to tighten standards and curtail mortgages. Fewer buyers will mean the glut of homes will increase and prices may fall further.
   Moreover, a weak housing market may have what economists call a ‘negative wealth effect,’ prompting consumers to curb spending as they see home values decline. Auto sales last month were far weaker than expected.

Taiwan’s cabinet on Wednesday further eased restrictions on visits by mainland Chinese to the island as it cleared a proposal permitting mainland Chinese to visit here for private health care.
   ‘The cabinet has just approved a project on the internationalisation of medical services, which is aimed at attracting overseas Taiwanese and mainland Chinese in the initial stages,’ an unnamed cabinet official said.
   The Mainland Affairs Council, which oversees Taiwan’s relations with mainland China, will complete the final details of the medical tourism program by the end of the month.
   Taiwan has banned direct trade and transport exchanges with China since the two sides split in 1949 at the end of a civil war, and tourist visits to the island by mainlanders are restricted.
   The government, meanwhile, is to select 10 local hospitals that will provide competitive medical services.
   The project is expected to attract 100,000 visitors in its first three years who will spend up to seven billion Taiwan dollars (US$214.06m) on medical care as well as other services, the official added.

Taiwan’s Ministry of Finance said Wednesday it would extend a 43.46 per cent anti-dumping tariff on shoes and boots imported from China until March 15, 2012.
   The government had levied an interim tariff since March after preliminary investigations showed that imports from China had hurt domestic shoe makers.
   Last month a probe by the International Trade Commission concluded that mainland shoe and boot manufacturers had caused ‘material injury’ to their Taiwan counterparts.
   As of the quarter to March, the average price of China-made shoes and boots was 313.1 Taiwan dollars (US$9.55) lower than that of Taiwanese products, according to the commission.
   Locally made products suffered a nine per cent fall in prices in the quarter from a year earlier.

Grameenphone has signed an agreement with Thai Airways in order to provide its subscribers special prices on Air Fare.
   Rubaba Dowla Matin, head of brands, Commercial Division of Grameenphone Ltd, and Kitipong Manityakul, general manager, Bangladesh of Thai Airways International Public Company Limited, recently signed the agreement on behalf of their respective organisations. Other officials from both the organisations were also present at the deal signing ceremony. Under the agreement, all Grameenphone subscribers who are activated for the last 180 days will enjoy special prices on traveling to 70+ destinations in five continents on Thai Airways till September 30, 2007. The Grameenphone subscribers may avail this discount by sending an SMS writing 333 to the number 9000 at Thai Airway’s appointed travel agents’ office, as well as its own office.

International Container Terminal Services of the Philippine announced Tuesday it will invest 180 million dollars to build a container terminal in Colombia’s Pacific port of Buenaventura.
   ICTSI will built the terminal on 225 hectares to expand the capacity of Buenaventura, the country’s principal Pacific port handling about 10 million tonnes of goods each year.
   The new facility, on the Aguadulce peninsula in Buenaventura, will have a capacity of 700,000 containers of 20 cubic feet a year.
   ICTSI operates ports around the world, including in Brazil and Ecuador in South America.

The euro hit another record high close to 1.38 dollars on Thursday, boosted by US housing concerns, amid a political stand-off between France and Germany over the European currency’s soaring value.
   The single currency touched 1.3794 dollars in early deals—which was an all-time record high point. It later pulled back to stand at 1.3788 dollars.
   Analysts said the euro was also bolstered by healthy economic growth and rising interest rates in the 13-nation eurozone.
   ‘Amid US housing/subprime woes, which have pushed up risk aversion, the dollar continues to trade on the defensive,’ said Commerzbank analyst Gavin Friend in London.
   Foreign exchange market concerns about the wider impact of mortgage problems in the United States have loomed large over the dollar this week.
   Thursday’s new historic high point beat the previous record high of 1.3787 which was struck on Wednesday.
   Dealers remain wary about prospects for the US economy in light of the current problems in sub-prime mortgages taken out by higher-risk borrowers.
   US Federal Reserve Board governor Kevin Warsh has tried to alleviate those fears, arguing that the sub-prime problems did not appear to have imposed significant strains on the US financial system.
   But ABN Amro analysts warned Thursday: ‘Overall, we favour a broader weaker trend for the dollar being retained on the ongoing rolling fallout from the sub-prime mortgage problem.’
   At the same time, German Chancellor Angela Merkel has dismissed calls by French President Nicolas Sarkozy for a brake on the euro’s rising value.
   France is increasingly frustrated by the negative impact of the strong currency on its exports.
   But the European Central Bank is believed set to raise key interest rates further in September or October — a move that would help curb inflation but likely push the euro even higher against the dollar.
   The pound, meanwhile, hit another 26-year peak at 2.0365 dollars on Thursday, buoyed by market expectations of another hike in British interest rates from the current 5.75 percent.
   Market analysts expect the ECB to continue raising eurozone borrowing costs in the coming months from 4.00 percent.
   The Federal Reserve has left US interest rates at 5.25 percent for the past year, while Japanese rates were held at 0.50 percent earlier on Thursday.
   The Bank of Japan froze its super-low interest rates for a sixth straight meeting on Thursday, opting to wait for further evidence that the economic recovery is taking root.
   But the vote was split 8-1, with one policy board member calling for a quarter-point rate hike — underpinning expectations of another rate rise
   within the next couple of months.
   The euro was changing hands at 1.3788 dollars, against 1.3741 dollars late on Wednesday, 168.41 yen, 0.6780 pounds and 1.6574 Swiss francs.
   The dollar stood at 122.10 yen and 1.2021 Swiss francs.
   The pound was being traded at 2.0338 dollars.

Dividend
   Islamic Finance & Investment Ltd
   The company has requested the concerned shareholders to collect their dividend warrants for the year 2006 from July 15 to 23 during office hours from the share department at the company’s registered office at Chand Mansion (3rd floor), 66, Dilkusha CA, Dhaka-1000.
   Al-Arafah Islami Bank
   The bank has further informed that Bangladesh Bank has allowed the bank for disbursement of remaining @ 20pc stock dividend in addition to 15pc disbursed earlier for the year 2006.
   Bangladesh Services
   The board of directors has recommended cash dividend @ 10pc and stock dividend @ 5pc for the year 2006. Annual general meeting of the company will be held on September 3. Dhaka Sheraton Hotel. Other information to be notified later.
   
   Transaction
   NCC Bank
   Tofazzal Hossain, one of the sponsors of the bank, has reported his intention to sell 10,000 shares out of his total holdings of 1,68,742 shares of the bank while Din M Rana, another sponsor of the bank has reported his intention to buy 10,000 shares of the bank at prevailing market price through stock exchange within next 30 working days.
   Mercantile Bank
   Jamshed Reza Khan, one of the sponsors of the bank, has reported his intention to sell 24,139 shares out of his total holdings of 1,75,780 shares of the bank while M Amanullah, another sponsor of the bank has reported his intention to buy 24,139 shares of the bank at prevailing market price through stock exchange within next 30 working days.
   Ibn Sina
   Md Tajul Islam Majumder, one of the sponsors/directors of the company, has reported his intention to sell 450 shares out of his total holdings of 500 shares of the company at prevailing market price through stock exchange within next 30 working days.
   
   Trade
   Bangladesh Services
   There will be no price limit on the trading of the shares of the company on July15 following its corporate declaration.
   
   Response to DSE query
   Prime Islami Life Insurance Ltd
   In response to a DSE query, the company has informed that there is no undisclosed price sensitive information of the company for recent unusual price hike.
   Dynamic Textile
   In response to a DSE query, the company has informed that there is no undisclosed price sensitive information of the company for recent unusual price hike. The company also informed that the factory of the company is presently under declared Lay-Off and not in operation till this date.
   Source: DSE, CSE

ACME launches
A-Calm tablet
The ACME Laboratories Ltd, a major pharmaceutical company of the country, has launched a non-sedative muscle relaxant drug A-Calm (generic Tolperisone). The new product is marketed as 50mg tablet. A-Calm is prescribed for low back pain, certain circulatory problems in the extremities and muscle spasm due to neurological disorders. This is centrally acting muscle relaxant having no sedation. Tablet A-Calm is available at the market in a pack of five strips of 10 tablets each. The maximum retail price of each A-Calm 50mg tablet is Tk 3.00, said a press release.
— New Age

CBC, DU jointly sponsors job fair
Corporate Bridge, the Dhaka University Job Fair and the BBA completion ceremony, was concluded at the Business Studies faculty premises of the university on Monday. Professor SMA Faiz, vice-chancellor of Dhaka University, inaugurated the two-day job fair on Saturday. The Commercial Bank of Ceylon in association with the Dhaka University sponsored the employment fair, said a press release. The students of the 9th batch of BBA (major in marketing) arranged the fair and the BBA completion ceremony. Mir Nasir Hossain, president of the Federation of Bangladesh Chamber of Commerce and Industry, was present on the occasion as guest of honour. Leading corporate houses like Maersk Line, Nestle, ACI, Holcim, Citycell and others participated in the job fair. The students interacted with the corporate officials directly and discussed their job prospects. The participating multinational and national companies also received the applications and curriculum-vitae from the prospective candidates in order to fill up the vacant posts in their offices in future. The job fair included few seminars on career planning, selection and management. Management officials from various corporate houses gave lectures at the seminars attended by the job seeking students. At present, six candidates are going through the bank’s training aiming to become permanent employee of the bank. Earlier in 2006, the Commercial Bank of Ceylon participated in a similar Job fair and had selected the six candidates from that fair.
— New Ag