Bangladesh鈥檚 current account balance remained positive in July, first month of the financial year 2025-26 driven by a surge in remittance inflows and export earnings, alongside sluggish import growth reflecting weak investment demand.
According to the latest data from the Bangladesh Bank, the current account posted a surplus of $245 million in July from that of $181 million deficit recorded in July, 2024.
It was $981 million surplus in FY25, a dramatic turnaround from the $6.6 billion deficit in FY24.
The last time the country saw a current account surplus in FY16, when it stood at $4.26 billion. Since then, persistent deficits continued for eight consecutive fiscal years until this reversal.
The current account is a vital part of a country鈥檚 balance of payments (BoP), reflecting the net flow of goods, services, primary income (such as interest and dividends), and secondary income (mainly remittances).
In July last year, business activities and financial transactions came to standstill due to month wide protests and shut down which led to fall of Awami League led government on August 5, 2024.
A surge in remittance inflows and robust export earnings contributed to the reversal of the current account balance.
The improvement in current account came primarily from a surge in secondary income, which includes remittances sent by Bangladeshi workers abroad.
Remittance inflows jumped by nearly 29.5 per cent to $2.47 billion in July from $1.91 billion in the previous fiscal year.
Overall secondary income rose to $2.52 billion, up from $1.95 billion in July last year.
Export earnings also contributed positively, growing by 27 per cent year-on-year to reach $4.4 billion in July.
However, the other indicators in the balance of payment, including trade deficit and financial account showed negative output in July.
As import payments surged by 24.7 per cent, the trade deficit rose to $1.5 billion from $1.46 billion a year earlier.
Moreover, the deficit in services trade rose to $482 million, down from $338 million in July last year, reflecting poor performance in sectors like IT services and transport.
Despite the positive remittance trend, the country continued to post a deficit in its primary income account.
This segment includes payments to foreign investors for interest, dividends, and compensation of foreign workers.聽 The deficit in this category declined to $291 million, with $502
million in payments made abroad while income received totaled only $211 million.
Despite the gains in current account and exports, the financial account of the BoP posted deficit of $718 million in July, compared with $263 million in July last year.
As a result of these developments, the overall balance of payments hit deficit of $545 million in July compared with that of $693 million in July last year.聽
As of July 24, 2025, the country鈥檚 foreign exchange reserves stood at $25 billion, based on the IMF鈥檚 updated calculation methodology.