The current account deficit is further widened during the first four months of the fiscal year due to weak export earnings and rising payments to the United States. import.
By the end of October, the deficit had risen to $ 3.31 billion, or $ 44 million in the same period a year earlier, according to data from the central bank.
Strong import growth coupled with a moderate rise in exports contributed to the current account deficit, said a senior official at the Bangladesh Bank.
Between July and October, imports increased by 28.70% yoy and exports by 7.63%.
The government should take initiatives to increase export earnings in order to cope with the large current account deficit, said Salehuddin Ahmed, a former BB governor.
Moderate growth in remittances also left a negative impact on the current account, he said.
Bangladeshis living abroad reported $ 5.76 billion in the first five months of fiscal year, up 10.76% from the previous year.
The growth of remittances during the period from July to November was good, but it has not yet reached the optimal level given the drop in remittances received the year last.
Expatriates Bangladeshis brought in $ 12.77 billion to their country during the 2016-17 fiscal year, down 14.47% year-on-year.
The central bank and the government should take effective measures to revive the flow of remittances, said the former governor.
The central bank should also strengthen its monitoring of the import process to see if the goods brought correspond to the payments made against them.
The local currency depreciated against the US dollar in recent months due to higher import payments.
The average exchange rate of the Taka-dollar was yesterday at 80.60 Tk, or 78.85 TK a year ago, according to statistics from the central bank.
The trade deficit also increased by 108.75 percent year on year to $ 5.79 billion over the four months to October, according to BB data.