The country’s trade deficit declined to $5.92 billion in the first 10 months of the current financial year 2012-13 from $7.53 billion recorded in the corresponding period of the FY 2011-12.
The trade deficit declined by 21.38 per cent in July-April of the FY 2012-13 compared with that of a growth of 9.87 per cent in the corresponding period of the FY 2011-12.A BB official told New Age on Monday that the trade deficit had been maintaining a declining trend since the beginning of this financial year due mainly to a lower import growth.
An unfavorable business situation is now persisting in the country due to the recent spates of political violence which has already created an adverse impact on the import of capital machinery and industrial raw materials and intermediary goods, he said.
For this reason, the declining trend in trade deficit has failed to bring an effective result for the country’s macroeconomic situation, he said.
Besides, the import of food grains including rice also declined this fiscal year because of higher production in the country.
The BB data showed that import in July-April of this financial year registered a growth of 0.87 per cent compared with that of an 8.65 per cent growth in the first 10 months of the FY 2011-12.
The import payment stood at $27.33 billion in the first 10 months of the FY 2012-13 from that of $27.09 billion in July-April of the FY 2011-12.
On the other hand, the country’s export earning increased by 9.44 per cent in the first 10 months of the FY 2012-13 compared with that of a growth of 8.20 per cent in the corresponding period of FY 2011-12.
The export earning stood at $21.40 billion in the first 10 months of the FY 2012-13 from $19.56 billion in July-April of the FY 2011-12.
Under the circumstances, the trade deficit, the gap between export earning and import payment, decreased by 21.38 per cent to $5.92 billion in the first 10 months of the financial year against $7.53 billion in the same period of the FY 2011-12.
Due to a lower import payment, the country’s foreign exchange market has plunged in a volatile situation as the value of local currency continued to increase against the US dollar.
The commercial banks are now enjoying sufficient greenback due to a lower import payment against the backdrop of an unfriendly business environment.
The dollar was quoted at Tk 77.75 to Tk 77.75 in the inter-bank forex market on Sunday and Tk 77.75 to Tk 75.76 on the previous day while it was quoted at Tk 79.75 to Tk 79.80 on January 1, 2013.
The BB official said, ‘The central bank has already purchased more than $5 billion this fiscal year in a bid to curb the devaluation of the greenback against the taka. As a result the foreign exchange reserve stood at $14.82 billion on April 30, 2013 from $9.97 billion on April 30, 2012,’ he said.
The BB data, however, showed that the service sector deficit in the first 10 months of the FY 2012-13 increased by 13.35 per cent to $2.75 billion.
In July-April the FY 2012-13, the country received $2.30 billion from the service sector but it paid foreign sources $5.05 billion.
The narrowed trade deficit and an increased trend in inward remittance have strengthened the country’s current account balance in the first 10 months of the FY 2012-13, said another BB official.
The current account balance in July-April stood at $2.161 billion against a negative figure of $181 million in the same period of the FY 2011-12, according to the BB data.
Net foreign direct investment increased by 7.21 per cent to $1,100 million in the July-April period of the ongoing financial year from $1,026 million in the same period of the FY 2011-12.
In the first 10 months of this financial year, medium- and long-term loan also increased by 32.89 per cent to $1,511 million from $1,137 million in the corresponding period of the FY 2011-12.
-With New Age input
