In the first nine months of the fiscal 2023–24 year, US $ 12.2 billion of the Government’s total export revenues remained pending abroad, pushing the difference between export receipts and shipment value to an all-time high at a time when the country is in desperate need of dollars amid a rapid depletion of its foreign exchange reserves.
Bangladesh Bank data demonstrates that export shipment value, as reported by the Export Promotion Bureau (EPB), was US $ 40.8 billion in July-March of FY ’24. However, export receipts through the banking channel were US $ 28.6 billion. The gap of US $ 12.2 billion was reflected in trade credit, a component of the financial account of the country’s balance of payment statement.
As trade credit demonstrates, the country’s financial account has been under pressure due to the growing disparity between export realisations and shipment value. Based on figures from the central bank, the financial account deficit hit a record high of US $ 9.2 billion from July to March, up from US $ 2.9 billion in the same period of the previous fiscal year.
The Bangladesh Bank expressed worries earlier in the FY ’23 when export receipts, which were at a record high of US $ 12 billion, were less than the value of shipments. If the current trend persists, this number might be much higher by the end of FY ’24.
Upon being contacted by local media, a senior executive from the Bangladesh Bank who was responsible for creating the balance of payment statement explained the increasing trade deficit. They stated that a notable discrepancy was discovered between the export statistics given by the EPB and the actual amount of export revenue realised.
The central bank is now working to find out whether export proceeds are not coming home or if there is a problem with the shipment value reported by the EPB, he said.
He continued by saying that the financial account would be less under strain if an accounting discrepancy between the shipment and realisation values of exports was found.
