Bangladesh's Development Independent Review
Independent Review of
RBD
Bangladesh's Development
External sector
Table: Trends of key external sector indicators
Unit
Indicators
Jul-Jun
FY21
Jul-Dec
Jul-May
FY22
FY22
Trade balance
-23,778
-15,616
-30,816
Current account balance
-4,575
-8,183
-17,233
Capital account
Million
221
138
173
Financial account
USD
13,093
6,676
13,352
Overall balance
9,274
-1,791
-4,300
Forex reserve
46,391
46,154
42,202
Forex reserve in months of imports
Month
6.9
5.6
4.6
Source: Compiled from Bangladesh Bank data
□ Despite a robust growth in export earnings, current account deficit reached
to a whopping USD 17.2 billion at the end of May FY22 owing to higher
import growth and negative growth of remittance inflow
Rapid depletion of forex reserve has become a major concern
➤ From USD 46.4 billion in June FY21, forex reserve plummeted to USD 42.2
billion in May FY22 which further decreased to USD 39.8 billion in early July
FY23 - equivalent to about 4.3 months worth of import payments
CPD (2022): Recent Challenges Facing the Bangladesh Economy: A Brief Overview
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