The country’s import expenditure in terms of LC (letter of credit) settlement rose slightly by 0.43% in June compared to the same month of the last year, according to the Bangladesh Bank data released yesterday.
The LC value stood at $3.12bn in June compared to $3.11bn in the same month last year.
Import growth of year-on-year basis was negative 6.29% in May and 1.23% in April, according to the central bank data.
Bangladesh Bank in its recent monetary policy expected 14% growth in imports and 7.5% in exports.
At the end of the last fiscal year 2015, the current account deficit stood at $1.63bn while the nation enjoyed surpluses over the fiscal years of 2013 through 2014.
It indicates the growing demand for capacity building and more productivity in the economy since more than 65% of country’s imports comprise capital machinery, intermediate goods and raw materials, the central bank explained in its monetary policy for the first half of fiscal year 2015-16.
The recent sustained pickup in investment and consumption imports will ease appreciation pressures on taka, enhancing its export competitiveness, Bangladesh Bank forecasts.
The foreign reserves are projected to keep rising to reach $26bn in FY16 from $25bn in FY15, but the import coverage will marginally fall from 6.2 to 5.7 months. Around six months of import
coverage are generally deemed safe and comfortable for an emerging country like Bangladesh, said the central bank in its monetary policy.
