B Mirror Desk: The current fiscal year will see a rise in the amount of dollars flowing into Bangladesh. According to the International Monetary Fund (IMF), this will lead to a reduction in the foreign exchange current account deficit.

This data came from the ‘World Economic Outlook, April, 2025’ report that the IMF released Tuesday evening.

According to the IMF study, the government’s deficit in this account will decline as the GDP grows because of an increase in the flow of foreign exchange. The deficit in this account might not alter in the upcoming fiscal year, just like it did in the present one.

It is to be noted that the government’s current account deficit in foreign currency means that the expenditure is more than the foreign currency income. As a result, the government has to spend from foreign currency reserves to meet the demand for dollars. As a result, the reserves continue to decrease. On the other hand, the price of the dollar also increases. For this reason, whenever a current account deficit appears, it is considered an early warning of a dollar crisis. But even though the current account deficit has been going on for eight years, the government was not alert. During that time, the reserves were increased by borrowing in foreign currency.

The report said that the current account deficit increased to 4 percent of GDP in the 2021-22 fiscal year due to the dollar crisis. At that time, the dollar crisis became apparent in Bangladesh due to the global recession. This led to a reduction in the current account deficit in the 2022-23 fiscal year. In that fiscal year, the deficit decreased to 2.6 percent of GDP. In the 2023-24 fiscal year, it decreased further to 1.4 percent of GDP.