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Rationale of the study:

Like most other developing countries, the economy of Bangladeshis highly dependent on agricultural activities. Like many other third-world countries, Bangladesh relies quite heavily on exports to provide for the needs of its densely populated nation. The same products sold locally will generally fetch a much lower price than they would on the international market. This means that it is far more profitable for the country to engage in exportation than it is to engage in local trade. While this may mean that a large percentage of the countries GDP is sent off abroad as Bangladesh exports instead of being enjoyed by the countrys own people, it also allows for a steady influx of foreign currency. Currently Bangladeshs main export items are garments, jute and jute-related goods, leather, frozen fish and seafood. Just three years ago the country made over $2,000 billion from export trade. The majority of the countrys trade is conducted with the USA but a small portion of exports also sees its way to Germany, the UK, France and Italy. However these figures should not mislead you into thinking that the country is well-off. As one of the poorest and most densely populated countries in the world, the majority of these profits will generally make their way into the pockets of a few wealthy while the rest will be thinly spread out amongst those involved in the production of these goods. To add to this, the countrys economy depends on an erratic monsoon cycle as well as drought and flooding which makes regular harvesting difficult. Besides these Bangladesh exports, the country is also engaged in the production of rice, tea, sugar wheat, ship scrap metal, textiles, fertilizer, pharmaceuticals, ceramic tableware and newsprint. Though yields can at times be quite high, the country still faces widespread poverty and it is struggling to free itself from this. Some progress has been made, but there are still many people living below the breadline in Bangladesh.

Objectives of the study:


The study is mainly focused to get some insight about different aspects of international financial management. To be more specific: To analyze the Balance of Payment (BOP) condition of Bangladesh To analyze the composition of import and export To understand the crisis of BOP of Bangladesh To identify the factors causing hindrance in export promotion To analyze impact of various factors affecting the exchange rate To test the PPP and IFE theory regarding the economy of Bangladesh

Methodology:
All the data used are secondary data. Most of the data are collected from various website of respective authorities. US dollar has been used as foreign currency from the perspective of Bangladesh. To analyze the data in addition to simple statistical tools, time series analysis of data has been conducted. To get further insight simple as well as multiple regression models has been used. To test the PPP and IFE theory has been a major focus of the study. Regression analysis has been used in this regard. The result of the analysis is tested against critical value to test whether PPP and IFE hold or not. The analysis is purely technical and least possible judgment has been used. Findings will be discussed but no particular suggestion will be made.

The Economy of Bangladesh


The economy of Bangladesh is a rapidly developing market-based economy.[8] Its per capita income in 2010 was est. US$1,700 (adjusted by purchasing power parity). According to the International Monetary Fund, Bangladesh ranked as the 44th largest economy in the world in 2011 in PPP terms and 57th largest in nominal terms, among the Next Eleven or N-11 of Goldman Sachs and D-8 economies, with a gross domestic product of US$269.3 billion in PPP terms and US$104.9 billion in nominal terms. The economy has grown at the rate of 6-7% per annum over the past few years. More than half of the GDP is generated by the service sector; while nearly half of Bangladeshis are employed in the agriculture sector. Other goods produced are textiles, jute, fish, vegetables, fruit, leather and leather goods, ceramics, ready-made goods. Exports of textiles and garments are the largest source of foreign exchange earnings. Shipbuilding, pharmaceuticals and consumer goods manufacturing are important emerging industries, while the jute sector is re-emerging with increasing global demand for green fibres. Remittances from Bangladeshis working overseas, mainly in the Middle East, are another major source of foreign exchange earnings. Other important export sectors include fish and seafood, ceramics, cement, fertilizer, construction materials, cane and leather products. Bangladesh has also made major strides in its human development index.[9] The land is devoted mainly to rice and jute cultivation as well as fruits and other produce, although wheat production has increased in recent years; the country is largely self-sufficient in rice production.[9][9] Bangladesh's growth of its agricultural industries is due to its fertile deltaic land that depend on its six seasons and multiple harvests.[9] Transportation, communication, water distribution, and energy infrastructure are rapidly developing.[9] Bangladesh is limited in its reserves of oil, but recently there has been huge development in gas and coal mining. The service sector has expanded rapidly during last two

decades and the country's industrial base remains very positive.[9] The country's main endowments include its vast human resource base, rich agricultural land, relatively abundant water, substantial reserves of natural gas and coal, major seaports at Chittagong and Mongla, and its central strategic location at the crossroads of the two large burgeoning economic hub groups of SAARC and ASEAN.[9] According to a 2012 projection by HSBC, Bangladesh will be the world's 31st largest economy in 2050 when ranked by total gross domestic product (GDP)[10] and 89th when ranked by GDP per capita.[11]
Macro-economic trend

This is a chart of trend of gross domestic product of Bangladesh at market prices estimated by the International Monetary Fund with figures in millions of Bangladeshi Taka. However, this reflects only the formal sector of the economy.
Year Gross Domestic Product US Dollar Exchange 1980 250,300 1985 597,318 1990 1,054,234 1995 1,594,210 2000 2,453,160 2005 3,913,334 2008 5,003,438 Agriculture 16.10 Taka 31.00 Taka 35.79 Taka 40.27 Taka 52.14 Taka 63.92 Taka 68.65 Taka Inflation Index Per Capita Income (2000=100) (as % of USA) 20 36 58 78 100 126 147 1.79 1.19 1.16 1.12 0.97 0.95

Most Bangladeshis earn their living from agriculture.[9] Although rice and jute are the primary crops, maize and vegetables are assuming greater importance.[9] Due to the expansion of irrigation networks, some wheat producers have switched to cultivation of maize which is used mostly as poultry feed.[9] Tea is grown in the northeast.[9] Because of Bangladesh's fertile soil and normally ample water supply, rice can be grown and harvested three times a year in many areas.[9] Due to a number of factors, Bangladesh's labor-intensive agriculture has achieved steady increases in food grain production despite the often unfavorable weather conditions.[9] These include better flood control and irrigation, a generally more efficient use of fertilizers, and the establishment of better distribution and rural credit networks.[9] With 28.8 million metric tons produced in 2005-2006 (JulyJune), rice is Bangladesh's principal crop.[9] By comparison, wheat output in 2005-2006 was 9 million metric tons.[9] Population pressure continues to place a severe burden on productive capacity, creating a food deficit, especially of wheat.[9] Foreign assistance

and commercial imports fill the gap,[9] but seasonal hunger ("monga") remains a problem.[14] Underemployment remains a serious problem, and a growing concern for Bangladesh's agricultural sector will be its ability to absorb additional manpower.[9] Finding alternative sources of employment will continue to be a daunting problem for future governments, particularly with the increasing numbers of landless peasants who already account for about half the rural labor force.[9] Due to farmers' vulnerability to various risks, Bangladesh's poorest face numerous potential limitations on their ability to enhance agriculture production and their livelihoods. These include an actual and perceived risk to investing in new agricultural technologies and activities (despite their potential to increase income), a vulnerability to shocks and stresses and a limited ability to mitigate or cope with these and limited access to market Bangladesh has made significant strides in its economic sector performance since independence in 1971. Although the economy has improved vastly in the 1990s, Bangladesh still suffers in the area of foreign trade in South Asian region. Despite major impediments to growth like the inefficiency of state-owned enterprises, a rapidly growing labor force that cannot be absorbed by agriculture, inadequate power supplies,[41] and slow implementation of economic reforms, Bangladesh has made some headway improving the climate for foreign investors and liberalizing the capital markets; for example, it has negotiated with foreign firms for oil and gas exploration, better countrywide distribution of cooking gas, and the construction of natural gas pipelines and power stations. Progress on other economic reforms has been halting because of opposition from the bureaucracy, public sector unions, and other vested interest groups. The especially severe floods of 1998 increased the flow of international aid. So far the global financial crisis has not had a major impact on the economy. The World Bank predicted economic growth of 6.5% for current year. Foreign aid has seen a decline of 10% over the last few months but economists see this as a good sign for self-reliance.There has been 18% growth in exports over the last 9 months and remittance inflow has increased at a remarkable 25% rate. Fiscal Year Total Export Total Import Foreign Remittance Earnings 20072008 $14.11b $25.205b $8.9b 20082009 $15.56b $22.00b+ $9.68b 20092010 $16.7b ~$24b $10.87b 20102011 $22.93b $32b $11.65b 20112012 $24.30b $35.92b $12.85b

To develop the economy, Uganda has been following some policies, like:

Foreign Aid and Economic Development:

Foreign relations and military


Climate

Geography

Ugandas Involvement with International Financial Agencies:

Current IMF membership: 188 countries Bangladesh Joined on August 17, 1972; accepted the obligations under Article VIII, Sections 2, 3, and 4 on April 11, 1994. Quota: SDR 533.30 million Outstanding loans: Emergency Assistance SDR 133.33 million; PRGF Arrangements SDR 301.88 million. The last Article IV Executive Board Consultation was on October 28, 2011 (Country Report 11/314)

Bangladesh: Second Review Under the Three-Year Arrangement Under the Extended Credit Facility and Request for Modification of Performance CriteriaStaff Report, Staff Supplement and Statement; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Bangladesh
June 05, 2013 -- Bangladesh: Second Review Under the Three-Year Arrangement Under the Extended Credit Facility and Request for Modification of Performance CriteriaStaff Report, Staff Supplement and Statement; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Bangladesh Series: Country Report No. 13/157 May 29, 2013 -- Press Release: IMF Executive Board Completes Second Review Under the ECF Arrangement for Bangladesh and Approves US$136.6 Million Disbursement May 13, 2013 -- Bangladesh -- Letter of Intent, Memorandum of Economic and Financial Policies, and Technical Memorandum of Understanding, May 13, 2013 PDF File Size: 496Kb April 20, 2013 -- IMFC Statement by P. Chidambaram, Minister of Finance, India On behalf of: Bangladesh, Bhutan, India, Sri Lanka. PDF File Size: 213Kb April 02, 2013 -- Press Release: Bangladesh: Statement at the Conclusion of the IMF Mission on the Second Review Under the Extended Credit Facility Arrangement

March 11, 2013 -- Bangladesh: First Review Under the Three-Year Arrangement Under the Extended Credit Facility and Request for Waiver of Nonobservance of a Performance CriterionStaff Report, Staff Statements and Supplement; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Bangladesh Series: Country Report No. 13/61 March 11, 2013 -- Bangladesh: Joint Staff Advisory Note on the Poverty Reduction Strategy Paper Series: Country Report No. 13/62 March 11, 2013 -- Bangladesh: Poverty Reduction Strategy Paper Series: Country Report No. 13/63 February 20, 2013 -- Press Release: IMF Executive Board Completes First Review Under the ECF Arrangement for Bangladesh and Approves US$139.4 Million Disbursement February 10, 2013 -- Bangladesh -- Letter of Intent, Memorandum of Economic and Financial Policies, and Technical Memorandum of Understanding, February 10, 2013 PDF File Size: 451Kb December 14, 2012 -- Economic Diversification in LICs: Stylized Facts and Macroeconomic Implications Author/Editor: Papageorgiou, Chris | Spatafora, Nicola Series: Staff Discussion Notes No. 12/13 December 06, 2012 -- Press Release: Statement at the Conclusion of the IMF Mission on the First Review Under the Extended Credit Facility Arrangement with Bangladesh October 31, 2012 -- Bangladesh: Poverty Reduction Strategy Paper Series: Country Report No. 12/293 October 31, 2012 -- Bangladesh: Poverty Reduction Strategy Paper--Joint Staff Advisory Note Series: Country Report No. 12/294 October 13, 2012 -- IMFC Statement by P. Chidambaram, Minister of Finance, India On behalf of: Bangladesh, Bhutan, India, Sri Lanka. PDF File Size: 590Kb October 12, 2012 -- Statement by the Hon. Abul Maal A. Muhith, Governor of the IMF and the World Bank Group for Bangladesh PDF File Size: 479Kb October 12, 2012 -- Transcript of an APD Regional Press Briefing July 30, 2012 -- Transcript of International Monetary Fund Managing Director Christine Lagarde at Keio University April 27, 2012 -- Press Release: Statement at the Conclusion of an IMF Mission to Bangladesh April 21, 2012 -- Transcript of the Asia and Pacific Economic Outlook

The country is likely to join the stolen asset recovery (StAR) initiative launched jointly by the World Bank and United Nations Office on Drugs and Crime (UNODC) last year, sources said. "A lot of progress has been made to join the initiative so that siphoned off money could be brought back to the country soon," said a senior finance ministry official. An expert committee will be formed in line with the suggestion made by WB to complete the procedures of joining the StAR initiative. The official said it is imperative for the country to join the initiative as the present caretaker government, intending to bring back the siphoned off money, has achieved little success. Financial Intelligence Unit (FIU) under the central bank has been assigned the main task of bringing back the money smuggled out by corrupt politicians and businessmen. It is operating for more than one year but could not strike any deal or ink any memorandum of understanding (MoU) with counterparts due to some technical barrier. A new anti money laundering act that was recommended by the Financial Action Task Force (FATF), an international body, was approved last month covering prevention of terror financing. The new act will help the FIU to strike expected deals or MoUs with counterparts in the UK, Malaysia, Philippines and Thailand to know details of the stolen money. The official said the country has already streamlined the operation of the new anti-graft body and also working to establish transparency in fiscal measures in line with the suggestion by the country's major donor

agencies. He said all these are prerequisites to join the StAR initiative launched jointly by the WB and the UNODC in 2007. These two organisations have forged partnerships with other agencies, such as the regional development banks, the International Monetary Fund, the Organisation for Economic Co-operation and Development (OECD), the Norwegian Agency for Development Cooperation (Norad) and the G-8. They are pursuing countries to ensure that the initiative is a truly global effort and recovered stolen assets would be spent for the development and social programs, or badly-needed infrastructure. Finance and planning adviser Mirza Azizul Islam last week in a meeting with the visiting WB managing director Ngozi Okonjo-Iweala praised the StAR initiative. According to a paper presented during the discussion with OkonjoIweala, the finance adviser sought WB assistance to recover the stolen wealth from overseas countries. After the meeting, Mirza Aziz told reporters that the WB suggested formation of a small expert committee to deal with the matter, although two similar bodies already exists. One is headed by the central bank governor and the other by law adviser. According to WB, the cross-border flow of proceeds from criminal activity, corruption and tax evasion is estimated to range between US1.0 and US $1.6 trillion per year --half of this from developing and transitional economies.

Corrupt money associated with bribes received by public officials from developing and transitional countries is estimated to be $20-40 billion. While estimates of such monies are known to be imprecise, they give an idea of the large dimension of the problem, warranting concerted action, it said.

The Balance of Payments


The Balance of Payments is the sum of the Current Account and the Capital Account and the Financial Account. The Balance of Payments Identity states that: Current Account + Capital Account + Financial Account + Net Errors and Omissions = Change in Official Reserve Account

Balance of Payment Analysis:

-$941.9 million (2012 est.) $243.6 million (2011 est.) $25.79 billion (2012 est.) Exports $24.56 billion (2011 est.) garments, knitwear, agricultural products, frozen food (fish and Exports - commodities seafood), jute and jute goods, leather US 19.4%, Germany 16.5%, UK 10%, France 7.3%, Italy 4.4%, Exports - partners Spain 4.2%, Netherlands 4.2% (2011) $35.06 billion (2012 est.) Imports $32.58 billion (2011 est.) machinery and equipment, chemicals, iron and steel, textiles, Imports - commodities foodstuffs, petroleum products, cement Imports - partners China 18.2%, India 13.5%, Malaysia 4.9% (2011) Reserves of foreign exchange $10.19 billion (31 December 2012 est.) and gold $9.192 billion (31 December 2011 est.) $36.21 billion (31 December 2012 est.) Debt - external $33.84 billion (31 December 2011 est.) Stock of direct foreign $7.849 billion (31 December 2012 est.) investment - at home $6.85 billion (31 December 2011 est.) Stock of direct foreign $93.9 million (31 December 2012 est.) investment - abroad $92.9 million (31 December 2011 est.) Exchange rates taka (BDT) per US dollar Current Account Balance

82.17 (2012 est.) 74.152 (2011 est.) 69.649 (2010 est.) 69.04 (2009) 68.554 (2008)

Current account balance (BoP; US dollar) in Bangladesh


The Current account balance (BoP; US dollar) in Bangladesh was last reported at 243520785.77 in 2011, according to a World Bank report published in 2012. Current account balance is the sum of net exports of goods, services, net income, and net current transfers. Data are in current U.S. dollars.This page includes a historical data chart, news and forecasts for Current account balance (BoP; US dollar) in Bangladesh.
Table Balance of Payments of Bangladesh (in million US dollar)
Items Import Export Trade Balance Current Account Balance IMF Account (Net) a) SDR Purchase b) SDR Repurchase 1974-75 1232 353 -879 -1003 1980-81 2687 820 -1867 -1428 1985-86 2364 909 -1455 -1055 -28 92 120 66 1995-96 6947 3884 -3063 -1291 -66 1998-99 8018 5324 -2694 -394 27 138 111

WORLD BANK INDICATORS - BANGLADESH - BALANCE OF PAYMENTS Previous Trade in services (% of GDP) in Bangladesh Communications; computer; etc. (% of service imports; BoP) in Bangladesh Income payments (BoP; US dollar) in Bangladesh Imports of goods and services (BoP; US dollar) in Bangladesh Insurance and financial services (% of service imports; BoP) in Bangladesh Goods imports (BoP; US dollar) in Bangladesh Service imports (BoP; US dollar) in Bangladesh Royalty and license fees; payments (BoP; US dollar) in Bangladesh Imports of goods; services and income (BoP; US 6.6 Last 7.1 View Chart View Chart 1211993046.8 1211246013.6 View Chart 19553968912.8 25170297631.2 View Chart

6.1

1.2

View Chart

16669204360.2 21505861638.4 View Chart 2884764552.6 3664435992.8 View Chart 7675990.8 21923483.8 View Chart

20765961959.5 26381543644.8 View Chart

dollar) in Bangladesh Transport services (% of service imports; BoP) in Bangladesh Yea r Current account balance Percent Change 74.6 82.7 View Chart

198 -0.249 0 198 -0.688 1 198 -0.661 2 198 -0.401 3 198 -0.622 4 198 -0.747 5 198 -0.582 6 198 -0.494 7 198 -1.172 8 198 -1.262 9 199 -0.945 0 176.31 %

-3.92 %

-39.33 %

55.11 %

20.10 %

-22.09 %

-15.12 %

137.25 %

7.68 %

-25.12 %

199 -0.346 1 199 -0.126 2 199 -0.132 3 199 -0.322 4 199 -0.91 5 199 -0.996 6 199 -0.666 7 199 -0.47 8 199 -0.407 9 200 -0.678 0 200 -0.431 1 200 0.167 2 200 0.176 3 200 -0.19 4 200 0.008

-63.39 %

-63.58 %

4.76 %

143.94 %

182.61 %

9.45 %

-33.13 %

-29.43 %

-13.40 %

66.58 %

-36.43 %

-138.75 %

5.39 %

-207.95 % -104.21 %

5 200 0.764 6 200 0.829 7 200 1.619 8 200 3.137 9 201 2.368 0 9,450.00 %

8.51 %

95.30 %

93.76 %

-24.51 %

Current Account Balance: -$941.9 million (2012 est.) $243.6 million (2011 est.) Year Value 2005 -176,224,700.00 2006 1,196,063,000.00 2007 856,879,600.00 2008 926,185,400.00 2009 3,556,126,000.00 2010 2,108,503,000.00 2011 -161,842,500.00

Financial account

Three types of investment (foreign direct investment (FDI), portfolio and other) make-up the financial account, along with financial derivatives and official reserve assets. A positive value for the financial account indicates that inward investment flows (inward FDI, portfolio and other investment liabilities) exceed reserve assets and outward investment flows (outward FDI, portfolio and other investment assets). This was the case for 14 EU Member States in 2011, with the highest value relative GDP reported by Cyprus (9.5 % of GDP), while 13 EU Member States

had a negative financial account: the financial account for the euro area was almost balanced, standing at -0.2 % of GDP in 2011, with net outflows recorded for direct and other investments. As can be seen in Table 4, the EU-27 continued to be a net direct investor vis--vis the rest of the world in 2011. Outward flows of FDI represented 2.8 % of GDP, while inward flows of FDI represented 1.8 % of GDP. The effect of the financial and economic crisis was apparent in relation to levels of direct investment which, having peaked in 2007, fell for three consecutive years. However, in 2011 the situation was reversed as inward flows of direct investment rose by 55 % (compared with the year before) and outward investment rose by 50 %. Luxembourg recorded by far the highest levels of both inward and outward FDI (in relation to GDP), followed by Belgium and France. Luxembourg also recorded the highest level of FDI transactions in absolute value terms (see Table 3) for outward flows (followed by the United Kingdom and France), as well as for inward flows (followed by Belgium and the United Kingdom). Contrary to FDI flows, the EU-27 consistently recorded net inflows of portfolio investment. Portfolio investment assets (outward investment) were equivalent to 0.4 % of GDP in 2011, while portfolio investment liabilities (inward investment) were valued at 3.4 % of GDP. Although portfolio investment liabilities remained the most important source of inward capital coming into the EU, its value in 2011 fell by 23 % when compared with 2010, while portfolio investment assets recorded a much more significant contraction (83 %). Some 13 of the EU Member States recorded disinvestment for portfolio assets, with particularly large flows for Luxembourg (75.7 % of GDP), Cyprus (24.8 %), Portugal (13.6 %) and France (8.9 %). The largest investments in portfolio assets in relative terms were recorded in Malta (-47.9 % of GDP) and in absolute values in United Kingdom and Germany (both in excess of EUR -25 000 million). Disinvestment in portfolio liabilities was less common (apparent in eight EU Member States), including Portugal, Greece, Spain, Italy and Belgium each of which reported negative flows in excess of 3 % of GDP; as did Iceland. In absolute terms, the largest disinvestments in portfolio liabilities in 2011 were recorded in Italy and Spain, followed at some distance by Portugal and Greece. Luxembourg again reported the largest positive flows (relative to GDP) at 82.5 %, followed by Ireland (20.1 %), while in absolute terms inflows were highest into France and Germany. For other assets and liabilities (such as currency and deposits, loans and trade credit) the EU-27 recorded net capital outflows equivalent to 2.0 % of GDP in 2011. Investment in other assets was equal to 3.4 % of the EU-27s GDP, with the largest investments (in relative terms) recorded for Luxembourg, Finland and the Netherlands. Inward investment in other liabilities was equivalent to 1.4 % of GDP in the EU-27 in 2011. Again the largest investments in relative terms were recorded in Luxembourg, followed at some distance by Finland, Malta and Greece, with substantial disinvestment recorded in Ireland and Cyprus. Net outflows of other investments from the EU-27 were twice as high in 2011 (EUR 249 900 million) as in 2010 but remained below their level of 2008 and 2009. There were 12 EU Member States having net other investment inflows in 2011, most notably the United Kingdom, Spain and Greece.

Bangladesh - Net capital account


Net capital account (BoP, current US$)
The latest value for Net capital account (BoP, current US$) in Bangladesh was $512,409,500 as of 2011. Over the past 6 years, the value for this indicator has fluctuated between $715,410,100 in 2007 and $152,541,900 in 2006. Definition: Net capital account records acquisitions and disposals of nonproduced nonfinancial assets, such as land sold to embassies and sales of leases and licenses, as well as capital transfers, including government debt forgiveness. The use of the term capital account in this context is designed to be consistent with the System of National Accounts, which distinguishes between capital transactions and financial transactions. Data are in current U.S. dollars. Source: International Monetary Fund, Balance of Payments Statistics Yearbook and data files.

Year 2005 2006 2007 2008 2009 2010 2011

Value $261,724,400 $152,541,900 $715,410,100 $490,457,400 $474,938,500 $603,386,500 $512,409,500

Major Product - Wise Import of Bangladesh


Amounts in Million US$ Sl. Product 2009-10 2021 2010-11 3280

01. Petroleum Products

02. Chemicals 03. Plastics & Rubber Articles 04. Cotton 05. Yarn 06. Textiles and Articles 07. Iron & Steel 08. Capital Machineries 09. Food Grains 10. Edible Oil

972 966 1440 719 1986 1453 1594 837 1050

1271 1319 2718 1412 2716 2032 2359 1932 1080

Free imports 200 cigarettes or 50 cigars or 225g of tobacco; Two bottles of alcoholic beverages or 1 bottle if not travelling for touristic purposes - only applicable to non Muslim travellers 250ml of perfume; Gifts up to the value of BDT500 Residents can import up to BDT 150 in local currency and an unlimited amount of foreign money. Non residents can import a similar amount of local currency and up to 1000 USD although sums greater than USD 150 will need to be declared at the customs department. All travellers can export up to BDT 100 in local currency whilst residents can take out the equivalent of USD 25 in foreign currency. Non residents can export up to USD 150 in foreign currency. All visitors flying out of Bangladesh will need to pay an additional BDT 300 Embarkation Tax prior to leaving the country. ports of goods and services (BoP; US dollar) in Bangladesh
The Imports of goods and services (BoP; US dollar) in Bangladesh was last reported at 37801926819.56 in 2011, according to a World Bank report published in 2012. Imports of goods and services comprise all transactions between residents of a country and the rest of the world involving a change of ownership from nonresidents to residents of general merchandise, goods sent for processing and repairs, nonmonetary gold, and services. Data are in current U.S. dollars.This page includes a historical data chart, news and forecasts for Imports of goods and services (BoP; US dollar) in Bangladesh.

Bangladesh Exports
Exports in Bangladesh decreased to 2079.20 USD Million in April of 2013 from 2303.42 USD Million in March of 2013. Exports in Bangladesh is reported by the Bangladesh Bank. Historically, from 1995 until 2013, Bangladesh Exports averaged 3292.41 USD Million reaching an all time high of 15565.20 USD Million in June of 2009 and a record low of 1024 USD Million in October of 2009. Bangladesh exports mainly ready made garments including knit wear and hosiery (75% of exports revenue). Others include: Shrimps, jute goods (including Carpet), leather goods and tea. Bangladesh main exports partners are United States (23% of total), Germany, United Kingdom, France, Japan and India. This page includes a chart with historical data for Bangladesh Exports.

The government has announced cash incentives to 19 export products for the current fiscal year to promote their overseas sales. The central bank published the incentive circular on its website on Sunday evening. The incentive rate for potato has been increased to 20 percent from 10 percent in the last fiscal year, while the assistance for leather goods has been reduced to 12.5 percent from 15 percent. Incentives for the other 17 sectors have remained unchanged. The circular said local textile goods will get 5 percent cash incentive as an alternative to tariff bonds and duty drawbacks. Products made of Hogla, hay and sugarcane fibre will receive 15 to 20 percent, agro and agro-processing products 20 percent, bicycles 15 percent and bone dust 15 percent assistance. In the poultry sector, hatching eggs and chicks will get 15 percent, light engineering goods 10 percent, liquid glucose 20 percent, halal meat 20 percent, frozen shrimps and other fishes 10 percent and ship 5 percent incentives. Finished leather will get 4 percent, crust leather 3 percent, plastic PET bottle-flex 10 percent and jute products 10 percent incentives. Exports from small and medium industries in textiles sector will get an additional incentive of 5 percent while overseas sale of any product outside the US, Canada and EU will receive 2 percent assistance. The incentives will be provided for products shipped within Jul 1, 2011 to Jun 30, 2012, the circular said.

4.2.4 Recent Trend in Export (in million US$) Month 2008-09P2007-08R July
1550.18 908.75 August 1358.09 1129.08 September 1478.02 1042.85 October 867.69 941.48 November 1297.47 1144.47 July-November 6551.45 (+26.80) 5166.63 (+2.40) Source: Export Promotion Bureau (EPB) and Bangladesh Bank

Major Product - Wise Export of Bangladesh Amounts in Million US$


Product 2009-10 2010-11 (July-April)

Raw Jute

196

357

Agri-Products

242

334

Frozen Foods

445

625

Leather

226

298

Jute Goods

592

758

Chemicals

103

105

Specialized Textiles

186

165

Home Textiles

402

789

Footwear

204

298

Knitwear

6483

9482

Woven Garments

6013

8432

Others

1113

1281

Total

16205

22924

Bangladesh Balance of Trade


Bangladesh recorded a trade deficit of 579.40 USD Million in March of 2013. Balance of Trade in Bangladesh is reported by the Bangladesh Bank. Historically, from 1995 until 2013, Bangladesh Balance of Trade averaged 1161.69 USD Million reaching an all time high of -56.40 USD Million in August of 2009 and a record low of -5370.60 USD Million in June of 2008. Bangladesh exports mainly ready made garments including knit wear and hosiery (75% of exports revenue). Others include: Shrimps, jute goods (including Carpet), leather goods and tea. Bangladesh main exports partners are United States (23% of total), Germany, United Kingdom, France, Japan and India. Bangladesh imports mostly petroleum product and oil, machinery and parts, soyabean and palm oil, raw cotton, iron and steel and wheat. Bangladesh main imports partners are China (17% of total), India, Indonesia, Singapore and Japan. This page includes a chart with historical data for Bangladesh Balance of Trade.
To export agro-products such as vegetables and fruits, the government will offer 20 percent cash incentive and on leather goods it will be 17.5 percent, whereas, home-made textiles and jute goods will enjoy cash subsidy at 5 and 10 percent respectively.

Gross national income (constant LCU) in Bangladesh


The Gross national income (constant LCU) in Bangladesh was last reported at 3924514886455.45 in 2011, according to a World Bank report published in 2012. Gross national income is derived as the sum of GNP and the terms of trade adjustment. Data are in constant local currency.This page includes a historical data chart, news and forecasts for Gross national income (constant LCU) in Bangladesh.
TO SIGNUP TO EXPORT DATA USE ADVANCED TOOLS

WORLD BANK INDICATORS - BANGLADESH - NATIONAL ACCOUNTS Previous General government final consumption expenditure (US dollar) in Bangladesh General government final consumption expenditure (current LCU) in Bangladesh General government final consumption expenditure (constant 2000 US dollar) in Bangladesh General government final consumption expenditure (annual % growth) in Bangladesh General government final consumption expenditure (constant LCU) in Bangladesh General government final consumption expenditure (% of GDP) in Bangladesh Household final consumption expenditure; etc. (US dollar) in Bangladesh Household final consumption expenditure; etc. (current LCU) in Bangladesh 3780133217.5 Last

4202157120.

261056000000.0 288310000000 4083859232.3 6.4

4231374541. 3.6

164777000000.0 170729000000 5.5 52636287286.4 5.3

62785760093

3635062000000.0 430773100000

Household final consumption expenditure; etc. (constant 2000 US dollar) in Bangladesh 48877812463.0 Household final consumption expenditure; etc. (annual % growth) in Bangladesh 6.7

51422796857 5.2

Bangladesh Capital Flows


Capital Flows in Bangladesh increased to 5.13 BDT Billion in March of 2013 from 0.25 BDT Billion in February of 2013. Bangladesh Capital Flows averaged 32.46 BDT Billion from 1997 until 2013, reaching an all time high of 679.50 BDT Billion in March of 2007 and a record low of -12.72 BDT Billion in May of 1998. In Bangladesh, international capital flows are measured using the Capital and Financial Account Balance of the Balance of Payments. This page contains - Bangladesh Capital Flows - actual values, historical data, forecast, chart, statistics, economic calendar and news. 2013-08-19
TO SIGNUP TO EXPORT DATA USE ADVANCED TOOLS

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Trade

Last

Previous

Highest

Lowest

Forecast

Unit

Trend

BALANCE OF TRADE CURRENT ACCOUNT CAPITAL FLOWS EXPORTS IMPORTS TERMS OF TRADE CURRENT ACCOUNT TO GDP
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-277.00 2013-05-31 1975.00 2013-03-31 5.13


2013-03-15

-761.90 708.00 0.25

-56.40 1975.00 679.50

-5370.60

-227.75 2013-06-30

USD Million

-1638.00 1667.68 2013-06-30 -12.72 2.74


2013-04-30

USD Million

BDT Billion

2696.40 2013-06-30 2815.80 2013-05-31 -3.71 0.90


2008-06-29

2538.80 15565.20 1024.00 2841.10 20291.40 1424.20 -4.90 3.70 7.87 3.70 -20.08 -4.40

2721.50 2013-07-31 2755.04 2013-06-30 -3.66 0.78


2008-12-31

USD Million

USD Million

Index Points

2011-12-31

2012-12-31

Percent

Reference
http://en.wikipedia.org/wiki/Economy_of_Bangladesh