Dhaka Stock Exchange (DSE) yesterday said the new monetary policy statement (MPS) is time-befitting and directional for inflation, foreign exchange and employment generation as well as the whole economy of the country, reports BSS.

Bangladesh Bank (BB) announced the MPS on Monday for the second half (H2) of the current 2017-18 fiscal upholding its accommodative and growth oriented stance.

“DSE lauds the central bank for announcing the MPS as it is trying to attract corporate and foreign investors in the capital market through providing necessary guidelines and taking different initiatives,” said a DSE press release.

DSE hoped that the MPS would play a vital role in the country’s development through expansion of the capital market.

According to the new MPS, the central bank is encouraging banks to avoid unduly high, medium or long-term investment financing exposures to corporate borrowers, and instead to help corporate bond issuance in the capital markets.

DSE hoped that the initiative will create product diversification in the capital market.

In the MPS, steps are on towards getting banks more proactively engaged in mobilising foreign savings of Non-resident Bangladeshis (NRBs) by promoting sales of government’s wages earners, development bonds and also in attracting NRB portfolio investments in Bangladesh capital markets by opening and managing Non-resident Investment Taka Accounts (NITAs) in their names.

The initiative will increase portfolio of the foreign investment, DSE observed.