The country's balance of payments (BoP) witnessed a downward trend in the first nine months of the fiscal year (FY) 2013-14 due mainly to widening trade gap, negative growth of inward remittance and lower inflow of foreign direct investment (FDI).
The overall BoP may come under pressure in the near future if the existing downward trend continues, officials said.
The BoP came down to US$3.88 billion in the July-March period of the FY `14 from $3.95 billion in the corresponding period of the previous fiscal year.
The country's overall trade deficit widened further during the period under review because of higher import payments and relatively lower export growth.
The trade deficit rose to $4.94 billion in the July-March period of the FY `14 from $4.86 billion in the corresponding period of the previous fiscal.
Talking to the FE, a senior official of the Bangladesh Bank (BB) said the trade deficit may widen further in the coming months if the existing trend in foreign trade persists.
 "The higher import trend may continue in the coming months ahead of the holy Ramadan," the central banker explained.
On the other hand, the surplus of current account balance decreased by nearly 42 per cent to $1.52 billion in July-March period of the FY `14 from $2.61 billion in the same period of the previous fiscal.
 "The surplus of current account balance has been squeezed during the period under review due mainly to the negative growth of inward remittance," the central banker explained.
Bangladesh received a total of $10.42 billion during the July-March period of the FY `14, sustaining a negative growth of 4.92 per cent over the corresponding period of the previous fiscal, the BB data showed.
"There is nothing alarming about the slight deterioration in the current account balance, which after all is still a positive number and we expect it to remain in surplus over the next year," Hassan Zaman, chief economist of the BB told the FE Thursday.
Dr. Zaman also said countries at our stage of development often run current account deficits in order to finance imports required for infrastructure development and industrial growth.
 "Given that we have more than adequate foreign exchange reserves, I wouldn't be too worried even if we have a small current account deficit so long as it is financing capital equipment imports required for economic growth," the chief economist noted.
The balance of financial account also dropped by nearly 37 per cent to $1.43 billion in the period under review from $2.26 billion in the same period of the FY `13 due mainly to lower inflow of FDI and increased amount of net trade credit deficit.
Trade credit is calculated using data on foreign trade from the customs department and actual realisation of fund from the same through banking channel.
The trade credit deficit rose to $990 million in the first nine months of the FY `14 from $197 million in the corresponding period of the previous fiscal year.
 "We're planning to conduct a survey to know actual position of international trade in the banking system," the central banker noted.
The inflow of FDI also came down to $1.15 billion in the first nine months of the FY `14 from $1.26 billion in the same period of the previous fiscal.
 "The inflow of FDI is showing a declining trend but it's still a normal position," the BB official claimed.
He also said the inflow of FDI was higher in the same period of the FY `13 as at least three private commercial banks bought a substantial amount of foreign exchange to meet their paid-up capital requirements.
Political uncertainty along with inadequate supply of gas and power has also led to decrease in the inflow of FDI during the period under review over that of the same period in FY `13.
 "Definitely, political uncertainty has discouraged the inflow of FDI in Bangladesh," a senior official of a foreign commercial bank told the FE.
He also said both local and foreign entrepreneurs are still maintaining a 'go-slow' policy to avoid risks.
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