Financial account surplus jumps to $3.81b in Jul-Mar

Trade deficit balloons amid surge in fuel import bill.

The country’s financial account recorded a surplus of more than $3.81 billion in the first nine months of the current fiscal year (FY26), a sharp increase from the $570 million recorded during the same period in the previous fiscal year.

Central bank data indicate that the repatriation of overdue export proceeds primarily drove this growth. The trade credit position, a key component of the financial account, shifted from a deficit of $1.61 billion in FY25 to a surplus of $3.23 billion during the July-March period of FY26. This reversal reflects an increase in the repatriation of previously stalled payments, providing a significant boost to the country’s capital flows.

Trade deficit widens

Despite the strong financial account performance, the trade deficit widened by 24.16% to reach $19.17 billion at the end of March. This increase, amounting to approximately $4 billion over the previous year, was driven by a 4.60% rise in imports alongside a 4.40% decline in exports. 

Import payments rose to $51.55 billion from $49.31 billion, while export earnings fell to $32.38 billion from $33.87 billion in the corresponding period of the prior year.

A notable factor in the rising import bill was the surge in petroleum imports, which grew by 81.10% to reach $936 million. 

Zahid Hussain, former lead economist at the World Bank’s Dhaka office, told TBS that while the trade credit position has significantly improved the financial account, there is no guarantee that this trend in trade credit will remain unchanged in the long term.

Current account deficit narrows

The current account deficit saw a marked improvement, narrowing to $397 million from $878 million in the previous fiscal year. This recovery was largely supported by a robust 20.30% growth in remittances, with the country receiving $26.20 billion in the first nine months compared to $21.78 billion in the prior year. In April alone, the country witnessed more than $3 billion in remittances, which experts believe has provided essential support to the balance of payments.

Zahid observed that although the current account balance remains negative, the situation is not yet concerning. He highlighted that the improvement in the current account is particularly significant given the increase in the trade deficit, largely credited to the influx of the greenback through secondary income and transfers.

Overall balance of payments returns to surplus

The overall balance of payments (BOP) moved into a surplus of $3.66 billion during the July–March period, a substantial recovery from the $1.10 billion deficit recorded in the same period of FY25. 

This surplus suggests that the country is currently receiving more foreign exchange than it is paying out, which helps strengthen the external sector.

Zahid said, “The worst phase of the global economy has not yet had an impact on the balance of payments up to March.”