Since the pot change on August 5, remittances have accelerated. Remittances totaling over two billion dollars have been entering the nation each month since August. Additionally, export revenue is rising. However, imports—both capital equipment and industrial raw materials—are not occurring as frequently as they once did. These factors have caused the current account to show a surplus. Additionally, the trade deficit has shrunk.
According to sector stakeholders, the country’s overall imports, including capital equipment, have declined as a result of the dollar crisis and the tightening of the central bank. As a result, entrepreneurs are not investing in new ventures. When opening import credit lines, banks exercise extreme caution. Overall, the trade deficit has shrunk as a result of these factors.
Bangladesh Bank’s updated report on Tuesday (February 4) said that the current account balance of foreign transactions ended with a large deficit of $6.51 billion in the previous fiscal year 2023-24. However, the current fiscal year 2024-25 has brought good news. At the end of the first six months (July-December) of the current fiscal year, the current account surplus stood at $33 million. However, a month ago, there was a deficit of $19.1 million in the current account. In the previous fiscal year (2023-24), the current account deficit was about $3.465 billion.
According to the central bank, the current account deficit decreased by 117.27 percent in December compared to November.
In the first six months of the current fiscal year (July-December), goods and services worth $22.32 billion were exported. Goods worth $32.88 billion were imported during the same period. This resulted in a trade deficit of $9.76 billion. A month ago, this deficit was $7.93 billion. Accordingly, the trade deficit increased by $1.82 billion in a month. However, the trade deficit in the same period of the previous fiscal year was $1.87 billion. Accordingly, despite the increase in a month, the trade deficit decreased by 10.22 percent compared to the same period last year.
In the six months from July to December, Bangladeshis living abroad sent a total of $13.78 billion in remittances. This is 27.6 percent more than the same period last year. The total remittance amount in the same period last year (July-December) was $10.80 billion.
The deficit has decreased in the overall balance of payments. At the end of last December, this deficit was $2.473 billion. At the end of December of the previous fiscal year, the overall balance of payments deficit was $3.451 billion.
At the end of the last fiscal year 2023-24, the financial account surplus was $4.54 billion. Although the current fiscal year 2024-25 started with a deficit, now the financial account is in surplus. There is a $1.379 billion surplus in the financial account in the first six months of the current fiscal year. Although a month ago, i.e. in November, the deficit was $560 million.
In this context, Shahriar Siddique, Bangladesh Bank’s Assistant Spokesperson and Director of the Banking Regulations and Policy Department, stated: “The economy benefits from a decrease in the current account deficit or surplus. Over the past six months, exports have increased by 11% and remittances by 27.7%. Nonetheless, imports increased by 3.5 percent during this time. The rate at which foreign exchange entered the nation during this time was greater than the rate at which it left. The current account surplus has resulted from this. Despite a decline in capital equipment imports. There is no longer any new investment. However, the import of other consumer goods is fine, even though the import of capital equipment has decreased. Our economy is doing well according to this indicator. It will also be beneficial.
However, the import of other consumer goods is fine, even though the import of capital equipment has decreased. Our economy is doing well according to this indicator. It will also help keep inflation under control.
