The country's trade deficit shot up to 160% in the first four months of the ongoing fiscal year 2021-22 as import payments weighed more over export receipts.
Between July and October, the trade deficit totalled to $9.09 billion in contrast to $3.49 billion a year ago, according to Bangladesh Bank statistics.
Imports stood at $23.9 billion in the first four months of FY22, an increase of 51.4% year-on-year.
Exports grew 20.4% to $14.80 billion at the same time.
The growing trade deficit is likely to intensify the country's currency dollar market, says former lead economist at the World Bank's Dhaka office Zahid Hussain.
He told Dhaka Tribune: “Export earnings have increased. But the import cost has increased much more than that. This is due to the increasing demand of the domestic market and the rise in commodity prices in the international market. This trend of increasing imports will also put pressure on the foreign exchange market, which is already evident."
If this situation continues, the price of commodities will increase further.
Hussain thinks that the increase in the price of fuel oil in the international market can make this situation more difficult.
Prof Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), said earlier that the drop in remittance flow has already affected Bangladesh's macroeconomy. But it is natural that reserves will decrease if imports increase.
He predicted then that the trade gap may widen further in the months ahead.
The reserves crossed a record $48 billion in August, but it stood at $44.83 billion on December 1.
The interbank exchange rate of the taka stood at Tk85.80 per dollar on December 8 in contrast to Tk84.80 a year ago.
Remittance has already started falling, creating a large current account deficit to the tune of $4.76 billion in the four months to October this fiscal year.
The current account, which records a nation's transactions with the rest of the world, enjoyed a surplus of $3.63 billion in October last year.