Commodity exchange to boost market dynamism: Amir Khosru

The introduction of a commodity exchange is essential to upgrading the country's capital market, said Amir Khosru Mahmud Chowdhury.

The standing committee member of the Bangladesh Nationalist Party made the remark at a view-exchange meeting as the chief guest.

Bangladesh's capital market has yet to reach its desired potential. Banks operate by providing long-term loans with short-term funds, whereas the capital market is meant to cater to long-term financing, said Mr Chowdhury.

The expected market momentum has not been achieved, he said, adding that market product diversification is essential for economic dynamism.

To progress from the status of a frontier market to an emerging market, new products-including bonds and commodities-must be introduced swiftly.

The BNP leader urged banks to take an active role in establishing this new market, noting that investments in the commodity market would open a new window on their balance sheets.

He added that non-resident Bangladeshis are eager to invest in good initiatives in the country, and therefore all stakeholders must work to facilitate new investments. Derivatives offer vast potential and can significantly accelerate economic activity.

Mr Chowdhury commended the initiative of the Chittagong Stock Exchange and called on everyone to work together for its success.

The Chittagong Stock Exchange organised a discussion titled "Discussion on Launching Commodity Exchange in Bangladesh" on Wednesday at Hotel Sheraton in the capital. A press release was issued the next day.

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