Business Report :
The current account, a key component of the country’s balance of payments, has turned positive after years, driven by a robust inflow of remittances.
According to data from the Bangladesh Bank, at the end of July-August, the current account recorded a surplus of $111 million, compared to a deficit of $610 million last fiscal year.
The country recorded a current account surplus for the last time during the July-February period of FY21.
According to central bank data, the country’s trade deficit decreased in the first two months of the current fiscal year, meaning the gap between exports and imports has narrowed.
By the end of July-August, the trade deficit stood at $2.75 billion, down from $3.04 billion in the previous fiscal year.
During this period, exports grew by 2.5%, while imports declined by 1.2%.
According to the central bank, the country’s financial account deficit reached $145 million at the end of July-August, a significant decrease from $1.34 billion a year ago.
The central bank reported that the country’s balance of payments deficit for July-August stood at $1.4 billion, compared to $1.7 billion in the last fiscal year.
The primary reason for the FY25 deficit is a negative balance of errors and omissions amounting to $1.43 billion, which was a positive $241 million at the end of the same period in FY24.
A recent report from the finance ministry indicated that the country’s balance of payments is affected by rate cuts from the US Federal Reserve.
The Fed reduced rates once last September, and if further cuts occur in the future, the pressure on the country’s balance of payments may ease.
