State of the Bangladesh Economy in FY2023-24 (First Reading)
Independent Review of
RBD
Bangladesh's Development
Balance of Payments: A reversal is yet to be seen
➤ The negative financial account balance has contributed
primarily to the falling forex reserves which will need to
be reversed by attracting FDI and speedy disbursement
of the large amount of foreign loans in the pipeline.
☐ Overall forex reserves (BPM6) have come down by about
USD 7.4 billion in October, 2023, compared to October
2022. The net reserves are estimated to be about USD 16.0
billion at present.
□ Forex reserves are worth 5.1 months of imports at current
pace, whereas at the rate of average monthly imports in
FY23, this would be only worth 3.5 months. If net reserves
are considered, the import capacity would be much lower.
Table 5.1: Balance of Payments FY23 VS
FY24 (July-October)
Trade Balance
Exports
Imports
Remittances
Current Account
Balance
Financial
Account Balance
Overall Balance
Gross Official
Reserves (BPM6)
(million USD)
July-October
FY23
FY24
-9624.0 -3809.0
15,886.0 16,460.0
25,510.0 20,269.0
7,158.0 6845.0
-4489.0 233.0
1276.0 -3965.0
-4706.0 -3829.0
27,534.0 20,710.0
Source: Extracted from BB (2023)
CPD (2023): State of the Bangladesh Economy in FY2023-24 (First Reading)
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