Bangladesh’s external sector has shown a strong rebound in the first two months (July–August) of FY2025-26, with the current account posting a $480 million surplus, more than double that of the same period last year. The improvement was driven by robust export and remittance growth, according to Bangladesh Bank data.
In July alone, exports grew by 27.1% to $4.42 billion, compared to $3.48 billion in the same month last year. Imports rose by 19.9% to $5.92 billion, pushing the trade deficit to $1.5 billion, slightly higher than $1.46 billion a year earlier.
Remittance inflows also remained strong. Overseas Bangladeshis sent $2.47 billion in July, up from $1.91 billion last year. Economists said a stable dollar rate and the use of formal banking channels contributed to the increase.
Former World Bank Lead Economist Dr. Zahid Hussain said rising exports and remittances have kept the current account in surplus, despite a modest rise in the trade gap. “The overall trend is positive — increased imports indicate rising investment activity,” he noted.
However, the financial account recorded a $718 million deficit in July, widening from $263 million a year earlier. Medium- and long-term loan inflows fell 29.6%, with $202 million received compared to $287 million last year. Experts, including CPD Fellow Prof. Mustafizur Rahman, attributed this to lower foreign loan disbursements and higher repayments amid political uncertainty.
To stabilize the foreign exchange market, Bangladesh Bank purchased $1.74 billion through auctions as the dollar rate began to ease due to higher supply.
A private bank treasury head said, “Lower private sector credit growth reduced capital machinery imports, easing demand for dollars. The central bank’s timely interventions helped maintain exchange rate stability.”
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