The first quarter of the current fiscal year saw the country consolidate its balance of payment surplus on the back of high inward remittance and low import bills.

The surplus stood at $1.11 billion in the first quarter of fiscal 2012, according to data from Bangladesh Bank.

A deficit of $99 million was recorded in the same period last fiscal year.

Import spending in the first three months of the current fiscal year increased by only 1.98 percent, while remittance increased by more than 19 percent.

As per a BB official, the decrease in export growth accounts for the fall in import bills, as a big chunk of import spending is earmarked for the export-oriented garment factories.

Exports grew by 1.34 percent in the first three months, due to the slowdown in the Eurozone and the US.

Another reason for the lower import spending is the decrease in food imports, the official said.

Since both of export and import growth fell, there was more or less no year-on-year change in trade deficit.

The current account balance in the first quarter was $135 million surplus, while it stood at $8 million deficit in the same period last fiscal year.

The BB official further said there is no pressure on the balance of payment this fiscal year as the foreign exchange reserve has been hovering around $11 to $12 billion, equivalent to four months' import bill.

As per global standards, foreign exchange reserve equal to three months' import bill is adequate.

News: The Daily Star/Bangladesh/10th-Dec-12