The country's current account balance that maintained a negative trend in July-November period recorded a surplus in December due mainly to increased flow of remittances.
Besides, the overall balance of payments also registered a surplus in the same period because of higher inflow of foreign direct investment (FDI), officials said.
"We expect that the existing trend of current account balance along with the overall balance of payments may continue in the third quarter of this fiscal," Chief Economist of Bangladesh Bank (BB) Mustafa K Mujeri told the FE.
He also said the pressure of import payments may ease further because of the falling trend in prices of essential commodities including fuel oils in the global market that helps reduce trade deficit of the country.
"Due to larger current account transfers of US$4.874 billion the current account balance recorded a surplus of $232 million during July-December, 2008 against the surplus of $298 million during July-December, 2007," the central bank said in its Major Economic Indicators: Monthly Update-February, 2009, released Monday.
The overall balance also showed a larger surplus of $489 million during the period under review against the surplus of $44 million during July-December period of the previous year, the Monthly Update added.
"Both current account balance and overall balance of payments have showed positive trend after two months as the flow of FDI picked up, export earrings rose and inflow of remittances increased," another BB official told the FE.
He also said the country's external balance is still in good position despite of the ongoing global economic recession. "But the existing trend may slip if the international financial crisis continues in the longer term," he added.
The country's overall trade deficit rose to $2.974 billion during the period from $2.227 billion of the corresponding period of the previous fiscal.
During the period, export earnings stood at $7.708 billion against the import payments of $10.682 billion, the BB's data showed.
Meanwhile, remittances from Bangladeshi expatriates stood at $5.369 billion in the first seven months of this fiscal, growing by 29.36 per cent from that of the corresponding period of last fiscal.
The country received $5.369 billion as remittances during the July-January period of FY 09 against $4.151 billion of the corresponding period of the previous fiscal.
However, the flow of net foreign direct investment (FDI) rose to $706 million during the period from $285 million of the corresponding period of the previous fiscal, according to the Update.
"The flow of FDI shot up as purchasing of 30 per cent stake worth $350 million of AK Khan in the mobile phone company TM International Bhd (TMIB), known as AKTEL by a Japanese company," the BB official said while explaining the big jump in FDI flow.
On the other hand, the flow of portfolio investment has recorded a deficit of $48 million during the period under review due to the ongoing global financial meltdown, they added.
The net receipts of foreign aid stood also lower at $579.64 million during the period against $630.04 million of the corresponding period of previous fiscal, the BB officials confirmed.
Current account balance records surplus in Dec
Siddique Islam | Published: February 24, 2009 00:00:00 | Updated: February 01, 2018 00:00:00
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