The simple equation of financial parameters of human life is to generate income, expend major part thereof to meet needs, and to save the remainder. Savings generate fund for onward investment. Financial intermediaries work on the supply of, and demand for, savings. There are different types of peo

Bangladesh is very much dependent on external sector. Such dependency indicates economic openness calculated in consideration of gross domestic product. As always, Bangladesh faces deficit with external transactions since we buy more compared to our sales abroad. This is a simple equation in the pe

People use money to buy goods and services every day. Buying is an activity of trading. Trading means giving and receiving something to and from someone. Before invention of monetary system, trading would take place through bartering between people to get something for another. Bartering would caus

Bangladesh is very much dependent on the external sector to support its domestic sector. External sector needs both-way transactions-- inflows and outflows.  There are different windows through which inward remittances are received. Of the current transactions, export and wage remittances are

Recent media reports indicate that import payments are going to be settled in the currency of a supplier's country, Chinese yuan renminbi (CNY) in particular. It is expected that this will support stabilisation of exchange rates in foreign exchange market. The argument behind the proposition is tha

Last month, Indian central bank issued a notification regarding settlement of payments against imports into and exports from India in local currency, rupee to be precise. While doing international trade, instead of paying and receiving convertible currencies like US dollar, invoices will be made in

Trade credit is used for short-term import finance for a period of one year normally. The credit is extended by foreign suppliers or lenders. These are in other term called as supplier's or buyer's credit. Under supplier's credit, foreign suppliers extend credit for the relevant period; they rece

Success stories of startups in Bangladesh are remarkable. Successful startups are attractive for foreign venture capitals which make investment for capital gain, not for regular dividend. This is the real motto of venture capitals. Capital account is not convertible in Bangladesh. However, inward