Bangladesh Bank data shows trade deficit hits record $33.25 bn in FY22

03 Aug '22

2 min read

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Bangladesh's trade deficit hit a historic high of $33.25 billion in fiscal 2021-22 (FY22) due to a global hike in import and commodity prices, according to the Bangladesh Bank. The current account deficit also surpassed $18.50 billion in FY22. Economists emphasised on curbing imports and boosting remittances to minimise trade deficit and offer relief.

The trade deficit in FY21 stood at $23.78 billion.

The current account deficit was $17.28 billion at the end of May this year, and shot up by $1.5 billion in June to reach a historic high of $18.69 billion. The deficit had been widening by $2 billion in the past few months. In FY21, the current account deficit was at $4.57 billion.

At the end of FY22, the overall balance deficit stood at $5.38 billion. The overall balance hit a $9.27 billion surplus in FY2020-21, a news agency reported.

The country received $21.03 billion in remittance in FY22, which was 15.12 per cent less than the previous fiscal, according to a report by its central bank, which had to inject $7.62 billion in the last fiscal in the face of growing import payment. The central bank also sold more than $1 billion to banks in July.

Remittance flow to Bangladesh rose by 11.76 per cent year on year to $2.09 billion in July this year. Migrant workers sent home $1.87 billion in July last year.

The excessive dollar sales dragged the forex reserve to $39.48 billion from $48 billion in August last year.

However, imports started to slow down from June after the Bangladesh Bank tightened import policies to save foreign exchange reserves amid rising dollar prices. At the same time, the central bank initiated raids to curb illegal dollar sales in the open market.

Fibre2Fashion News Desk (DS)

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