CSE signs deal with Indian MCX

Bangladesh has stepped into new economic era by making visible progress in setting up the country’s first-ever commodities exchange as the Chittagong Stock Exchange (CSE) has assigned Multi Commodity Exchange Limited (MCX) of India as its consultant.

An agreement to this effect was signed between CSE and MCX at a city hotel on Tuesday (April 12).

Commerce Minister Tipu Munshi was virtually present on the occasion as the chief guest. Professor Shibli Rubayat-Ul-Islam, Chairman of Bangladesh Securities and Exchange Commission (BSEC) and Vikram K Doraiswami, High Commissioner of India to Bangladesh attended the programme as special guests.

Dr. Shaikh Shamsuddin Ahmed, Commissioner, BSEC was present as the guest of honor. Besides, representatives from MCX, the Securities and Exchange Board of India (SEBI) and Bangladesh High Commission in India attended the programme virtually. CSE Chairman Asif Ibrahim delivered vote of thanks.

Distinguished guests from different ministries, BSEC, capital market intermediaries, stakeholders, CSE Board of Directors & executives and representatives from other organizations attended this event.

Commodity exchange, an organized marketplace where buyers and sellers come together to trade commodity related contracts to enable commodity producers sell their items.

For an emerging economy like Bangladesh, the commodity market will result in reduction of post-harvest losses through price stability, improvement in commodity price risk in both locally produced and imported supplies and credit risk management, provision of a transparent and competitive price discovery mechanism, reduction in transaction and marketing costs, etc.

Speakers at the programme mentioned that the commodity exchange will help the country’s economy by providing a structured, reliable, and efficient marketplace to trade suitable commodities for the purpose of natural commercial instruments, financing, risk management and hedging.

The exchange will develop an ecosystem for physical market trading by establishing a vibrant commodity derivative and spot markets in Bangladesh. This will help the government effectively monitor the movement of prices of essential commodities and lubricate the supply chain.

By bringing in competitiveness and efficiency in market mechanisms, the exchange will affirm food security and an enhanced backward linkage for the export and import oriented sectors, they opined.

Mentioning that authentic price discovery and efficient price risk management are the foremost outcome of the commodity exchange, they said a structured market affirms price discovery, price risk management, import and export competitiveness, predictable pricing, control over price fluctuations, ensure credit accessibility and improved product quality.