$812m BoP surplus in Jul-Mar
Star Business Report
Boosted by a surge in remittances and strong exports the balance of payments surplus reached US$812 million in the first nine months of the current fiscal year (2006-07), despite a fall in foreign direct investment and foreign aid.The surplus is in sharp contrast to the same period a year earlier when the country was running a balance of payments deficit of $37 million. The main reason for the surplus was a strong jump in the level of remittances from Bangladeshis abroad. In the nine months to March 31 remittances rose by 26 percent compared to the same period a year earlier, to reach $4.9 billion. The surge was mainly due to the increased use of official channels by Bangladeshis abroad to send their money home. Exports rose by 20.21 per cent to $9.03 billion, compared to $7.51 billion in the same period a year earlier. One of the largest gainers was the knitwear sector. Imports rose by 20.55 percent to reach $12.74 billion compared to $10.57 billion, meaning the deficit reached $2.55 billion, up from $2.09 billion in the same period a year earlier. Larger deficits in services and income meant the current account surplus fell to $318 million from $523 million during the same period of 2005-06. Foreign direct investment fell to $385 million in the July-March period, down 24 per cent, while foreign aid dropped by 2 per cent to $909 million, according to the Economic Relations Division. However, portfolio investment increased 212 percent to $50 million, compared to $16 million during the same period a year earlier.
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