Trade imbalance also declined in the same period caused by export growth, according to Bangladesh Bank statistics.

Despite larger service and income deficits, current account balance recorded a bigger surplus of US$414 million in July-August of FY 2006 against that of $99 million in the same period of FY 2005.

Trade balance also recorded a smaller deficit of $148 million in July-August of this fiscal compared to the deficit of $352 million during the same period of the previous financial year.

Remittance inflow maintained over 24 per cent growth in the first three months of this fiscal. Remittances in July to September period of FY 2006 stood at $1328 million, which was $1071 million during the same period of the last fiscal.

Besides, non-resident Bangladeshis (NRBs) are sending more money home ahead of Eid-ul-Fitr, contributing to growth in remittance.

The total remittances reached around five billion dollars in the last fiscal mainly due to increase in skilled labour force abroad and government's efficient move against money laundering.

On the other hand, exports saw a 31 percent growth in July-August of FY 2006 over the same period of the previous fiscal while import payments registered a 17 percent growth over the corresponding period of the previous fiscal.

Export earnings amounted to $2301 million in the first two months of FY 2006 against $1753 million during the previous fiscal's corresponding period.

Import payments in July-August of FY 2006 increased by $394 million to $2709 million compared to $2314 million during the same period of FY 2005. Of the total import payments during the first two months of FY 2006, imports under cash and for EPZ stood at $ 2553 million, under loans/grants $13 million, under direct investment $9 million and short term loan by Bangladesh Petroleum Corporation at $132 million.

Meanwhile, fresh opening of LCs (letter of credits) in July-August of FY 2006 increased by $322 million or 13 percent to $2777 million against $2454 million during the same period of FY 2005.