Due to increased remittance inflows and export earnings, the country’s balance of payments (BoP) has seen improvement.

According to the latest report from Bangladesh Bank, the overall trade deficit in July of the current fiscal year 2025–26 stood at $545 million, down from $693 million during the same period last year. This represents a year-on-year decline of $148 million, or 21.36%.

The data shows that in July of the current fiscal year, Bangladesh’s export earnings reached $4.779 billion, up from $3.824 billion in July of the previous year—an increase of 25%. During the same period, imports rose to $6.27 billion, compared to $5.248 billion last year, marking a growth of about 19.5%.

Bangladesh Bank data also reveals that the current account deficit slightly widened to $1.505 billion, from $1.463 billion in July of the previous fiscal year.

On the other hand, the financial account deficit increased significantly to $718 million, compared to $263 million a year ago.

Net FDI (Foreign Direct Investment) surged to $1.04 billion in July, up from just $380 million in the same month last year.

During this period, the country’s total foreign currency reserves stood at $29.80 billion, up from $25.82 billion in July last year. However, based on the BPM6 international standards, the reserves were $24.78 billion, compared to $20.39 billion a year earlier.

At the same time, remittance inflows rose to $2.478 billion, compared to $1.914 billion in July last year—an increase of 29.5%.

Bangladesh Bank’s spokesperson and Executive Director Arif Hossain Khan stated, “Maintaining the supply of foreign currency in the coming days will be a challenge. If not managed, it could lead to pressure on the economy.”

Dr. Mainul Islam, former professor of economics at the University of Chittagong, remarked, “If the current account is in surplus, it is possible to operate without borrowing. However, if there is a deficit, the country becomes dependent on loans. Therefore, maintaining a positive current account balance in the long term is crucial.”