Trade deficit doubles in Q1
Trade deficit almost doubled to $2.4 billion in the first quarter of the current fiscal year due to rising imports and falling exports.
Import growth—13.62 percent—outpaced export growth, which was 0.94 percent.
In the period, food grain imports fell 32.90 percent year-on-year, but capital machinery imports rose 22 percent and petroleum 53 percent, according to data on letters of credit settlement.
Although trade deficit widened, the overall surplus was significant in the first quarter, as remittances, foreign direct investment and medium- and long-term loans increased.
In July to September, the overall surplus was $1.17 billion, up from $1.14 billion in the same period a year ago.
Inward remittances rose 22.72 percent, net FDI 10.24 percent and medium- and long-term loans 41.47 percent year-on-year in the quarter.
Foreign currency reserves have been hovering around $22 billion in the last two months.
On November 18, the forex reserves stood at $21.53 billion.
As the trade deficit widened, the exchange rate came under slight pressure and the taka depreciated against the dollar.
In the inter-bank forex market, the average taka-dollar exchange rate stood at Tk 77.54 on November 18, up from Tk 77.4 on October 30.
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