Trade deficit increases despite lower imports

The country’s trade deficit has increased despite lower imports.

The country’s trade deficit has increased despite lower imports owing to various conditions imposed by the central bank to keep the country’s foreign exchange reserves stable. This situation has happened due to lower exports.
Bangladesh’s trade deficit in the July-January period in 2022-23 stood $1,338.80 crore. But after one month, in the July-February period of fiscal 2022-23, the trade deficit stood at $1,382.80 crore, an increase of $ 50 crore.
According to the Bangladesh Bank, it saw $439 crore as negative in the last 8 months.
The sector insiders said that the central bank took various initiatives to reduce import expenditure in a bid to keep the country’s foreign exchange reserves stable. But the trade deficit did not decrease significantly due to lower exports in the outgoing financial year.