Trade deficit exceeds $20b in July-May FY24

Despite a decline in exports, Bangladesh’s trade deficit decreased by $6 billion to $20 billion in the first 11 months of FY24, thanks to a significant reduction in imports, according to central bank data. However, the trade deficit increased by $1.52 billion in May. Still, the pressure on the trade balance eased slightly as imports fell by 12.6% year-on-year during July-May of FY24. This has thumped down export figures for July-March by a huge $10 billion, showing a negative growth in reality instead of positive growth perceived so far. According to an economist, even a slightly lower deficit is adding pressure to the economy due to the uncomfortable reserve position. The current account – considered the primary account of a country and consisting of remittances, exports, and imports – is in deficit by $5.98 billion for July-May of FY24, according to central bank data. The deficit was over $12 billion at the end of the same period of the previous fiscal year. Despite a 10.1% growth in remittances, the current account deficit widened slightly due to a decline in exports. Mainly because of the high trade deficit, the current account could not achieve a surplus even with the growth in remittances. According to central bank data, the financial account surplus at the end of May decreased by $226 million compared to April, totalling $2.08 billion. The balance of payments statement for July-April of FY24 revealed that the financial account swung to a surplus of $2.2 billion, reversing from a historic deficit of $9.25 billion a month earlier. Indeed, the financial account turned positive after two years of being negative.

Source: https://www.tbsnews.net/economy/trade-deficit-exceeds-20b-july-may-fy24-903136

Banks waive penalty for delayed loan repayment

Some banks have decided not to impose any interest or fees on clients for delayed payment of loan instalments, including that against credit cards, amidst a nationwide curfew and internet blackout. Four local private commercial banks, BRAC Bank, City Bank, Mutual Trust Bank and Pubali Bank, and foreign lender Standard Chartered Bangladesh have already taken the decision. Around $80 million to $100 million in remittances are sent to Bangladesh on a regular day, which was disrupted for the internet shutdown. Amidst the internet shutdown and nationwide curfew, people have been unable to conduct online banking since July 18. A lot of ATM booths have been kept shut while others have run out of cash.

Source: https://www.thedailystar.net/business/economy/news/banks-waive-penalty-delayed-loan-repayment-3660326

Banks see cash withdrawal, bill payment pressure

Banks saw cash withdrawal pressure today as they reopened certain branches following three days of additional general holidays. An increased number of people also came to the branches to pay utility bills. A gathering of accountholders was seen in the branches of banks, particularly in the Motijheel area, Dhaka’s commercial district, in the initial hours. People were also seen queuing in front of ATM (automated teller machine) booths to withdraw cash.

Source: https://www.thedailystar.net/business/news/banks-see-cash-withdrawal-bill-payment-pressure-3660836