Bangladesh’s October 2023, current account surplus sharply declined to $233 million, an 80% drop from September’s $1.2 billion, attributed to increased imports, slow export growth, and negative remittance trends. This contraction raises concerns about its impact on the exchange rate and foreign reserves, with analysts emphasizing the pivotal role of the current account in the broader balance of payments.
Import rise, reaching around $5.5 billion in October, significantly affected the trade and current account balances. Despite a decrease in the financial account deficit, concerns persist, including a $3.66 billion trade credit deficit and reduced availability of foreign loans due to negative ratings. The trade deficit widened to $3.81 billion in July-October, prompting scrutiny amid a broader balance of payments deficit of $3.83 billion in September, $900 million less than the previous fiscal year.
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