Bangladesh’s current account posted a $111 million surplus in July-August FY25, its first in years, primarily driven by a 15.8% year-on-year rise in remittances. This shift comes after a $610 million deficit in the previous fiscal year, attributed to remittances moving from informal to formal channels and reduced money laundering. Zahid Hussain, a former World Bank economist, credits these factors for the surplus but warns that vigilance is needed to prevent new illicit financial activities.
The country’s trade deficit also narrowed to $2.75 billion, down from $3.04 billion last year, with exports growing by 2.5% and imports dropping by 1.2%. While export growth is encouraging, Hussain cautioned that declining imports may indicate reduced investment. Bangladesh’s overall balance of payments remains under pressure, with a financial account deficit and potential unrecorded outflows complicating the situation, emphasizing the need for flexible dollar rates and increased economic stability.
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