The country鈥檚 current account balance turned positive in July-December period of FY25, primarily due to a sharp surge in remittance inflows, compared to the same period in FY24.
According to Bangladesh Bank data, the current account recorded a $33 million surplus in July-December of FY25, contrasting with a $3,465 million deficit in the same period of FY24.
The current account balance is derived from the sum of the trade balance, net primary income and net secondary income in the balance of payments.
The trade deficit stood at $9,764 million in July-December of FY25, compared with that of $10,876 million in the same period of FY24, as import payments continued to outpace export earnings.
The primary income deficit, which accounts for salaries, interest, dividends and profits from foreign investments, reached $2,028 million.
This resulted from income paid to foreigners, amounting $2,347 million, exceeding income received from abroad, which was $319 million.
Despite the persistent trade and primary income deficits, the current account turned positive due to a significant rise in remittance inflows, recorded under secondary income.
During July-December of FY25, secondary income amounted to $14,029 million, of which $13,776 million came from remittances. In contrast, secondary income was $10,800 million in the same period of FY24.
The financial account recorded a surplus of $1,379 million in July-December of FY25, up from $604 million in the same period of FY24.
During this period, the government secured $3,262 million in net foreign loans, down from $4,103 million a year earlier.
Loan repayments, however, rose to $1,262 million, compared with that of $951 million in FY24.
The financial account, a key component of the balance of payments, tracks foreign investments, loans and changes in financial reserves. A rise in net foreign loans and grants contributed to the financial account surplus.
A surge in net foreign loans and grants contributed to the financial account surplus.
During the six months, the trade deficit increased to near the previous July-December period, driven by increased imports.
Import payments increased by 3.5 per cent to $32 billion during this period, compared with those of $31 billion in FY24.
At the same time, export earnings rose by 11 per cent to $22.32 billion, up from $20.11 billion in FY24.
The deficit in trade services widened to $2,204 million in July鈥揇ecember of FY25, up from $2,0118 million in the corresponding period of FY24.
The country鈥檚 foreign exchange reserves, calculated under the International Monetary Fund guidelines, stood at $19.97 billion as of January 29, while the interbank dollar rate climbed to Tk 122 per dollar.