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Topic: Recent International Trade scenario of Bangladesh

BOP
Submitted To:
Mr. Shantanu Kumar Roy
oint !irector
"oreign e#change policy department.
Bangladesh Ban$% Sylhet.
&ecturer
!epartment of Business 'dministration
Metropolitan (ni)ersity% Sylhet.
Submitted By:
Mir Md. *a+mul ,aydar
MB' --nd Batch
I! *o: .../.-0/1-2
Metropolitan (ni)ersity
3ontent
4Sl *o. 4Title 4Page no. 4 4. 4Introduction 4./5 4 4- 43omposition and Performance of 6#ports of
Bangladesh 45 4 4 46#port 6arnings and 6#port 7ro8th 4 4 45 46#port 6arnings and 6#port 7ro8th
by 3ommodities 45 4 49 46#ports of Primary and Manufacturing 3ommodities 49 4 42 46#port
:alue% :olume and (nit Price Inde# 49/2 4 40 46#ports Performance 3ompared to Imports 42 4 4; 4
3omposition and Performance of Imports of Bangladesh 42/0 4 4 4Import 3omposition and
7ro8th 4 4 4< 4Import Shares of 3onsumer and 3apital 7oods 40...
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Balance of Payment (BOP) of a country is defined as, "Systematic record of all
economic transactions between the residents of a foreign country" Thus balance of
payments includes all visible and non-visible transactions of a country during a
given period, usually a year. It represents a summation of countrys current demand
and supply of the claims on foreign currencies and of foreign claims on its
currency.
!"#
$alance of payments accounts are an accounting record of all monetary
transactions between a country and the rest of the world.
!%#
These transactions
include payments for the countrys e&ports and imports of goods, services, financial
capital, and financial transfers. The $'( accounts summari)e international
transactions for a specific period, usually a year, and are prepared in a single
currency, typically the domestic currency for the country concerned. Sources of
funds for a nation, such as e&ports or the receipts of loans and investments, are
recorded as positive or surplus items. *ses of funds, such as for imports or to
invest in foreign countries, are recorded as negative or deficit items.
+hen all components of the $'( accounts are included they must sum to )ero
with no overall surplus or deficit. ,or e&ample, if a country is importing more than
it e&ports, its trade balance will be in deficit, but the shortfall will have to be
counterbalanced in other ways - such as by funds earned from its foreign
investments, by running down central ban. reserves or by receiving loans from
other countries.
+hile the overall $'( accounts will always balance when all types of payments
are included, imbalances are possible on individual elements of the $'(, such as
the current account, the capital account e&cluding the central ban.s reserve
account, or the sum of the two. Imbalances in the latter sum can result in surplus
countries accumulating wealth, while deficit nations become increasingly indebted.
The term "balance of payments" often refers to this sum/ a countrys balance of
payments is said to be in surplus (e0uivalently, the balance of payments is positive)
by a specific amount if sources of funds (such as e&port goods sold and bonds sold)
e&ceed uses of funds (such as paying for imported goods and paying for foreign
bonds purchased) by that amount. There is said to be a balance of payments deficit
(the balance of payments is said to be negative) if the former are less than the
latter.
*nder a fi&ed e&change rate system, the central ban. accommodates those flows
by buying up any net inflow of funds into the country or by providing foreign
currency funds to the foreign e&change mar.et to match any international outflow
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of funds, thus preventing the funds flows from affecting the e&change rate between
the countrys currency and other currencies. Then the net change per year in the
central ban.s foreign e&change reserves is sometimes called the balance of
payments surplus or deficit. 1lternatives to a fi&ed e&change rate system include a
managed float where some changes of e&change rates are allowed, or at the other
e&treme a purely floating e&change rate (also .nown as a purely flexible e&change
rate). +ith a pure float the central ban. does not intervene at all to protect or
devalue its currency, allowing the rate to be set by the mar.et, and the central
ban.s foreign e&change reserves do not change.
2istorically there have been different approaches to the 0uestion of how or even
whether to eliminate current account or trade imbalances. +ith record trade
imbalances held up as one of the contributing factors to the financial crisis of
%334-%3"3, plans to address global imbalances have been high on the agenda of
policy ma.ers since %335.
The current account shows the net amount a country is earning if it is in surplus,
or spending if it is in deficit. It is the sum of the balance of trade (net earnings on
e&ports minus payments for imports), factor income (earnings on foreign
investments minus payments made to foreign investors) and cash transfers. It is
called the current account as it covers transactions in the "here and now" - those
that dont give rise to future claims.
!6#
The Capital Account records the net change in ownership of foreign assets. It
includes the reserve account (the foreign e&change mar.et operations of a nations
central ban.), along with loans and investments between the country and the rest of
world (but not the future regular repayments7dividends that the loans and
investments yield8 those are earnings and will be recorded in the current account).
The term "capital account" is also used in the narrower sense that e&cludes central
ban. foreign e&change mar.et operations/ Sometimes the reserve account is
classified as "below the line" and so not reported as part of the capital account.
!9#
:&pressed with the broader meaning for the capital account, the $'( identity
assumes that any current account surplus will be balanced by a capital account
deficit of e0ual si)e - or alternatively a current account deficit will be balanced by
a corresponding capital account surplus/
The balancing item, which may be positive or negative, is simply an amount that
accounts for any statistical errors and assures that the current and capital accounts
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sum to )ero. $y the principles of double entry accounting, an entry in the current
account gives rise to an entry in the capital account, and in aggregate the two
accounts automatically balance. 1 balance isnt always reflected in reported figures
for the current and capital accounts, which might, for e&ample, report a surplus for
both accounts, but when this happens it always means something has been missed
- most commonly, the operations of the countrys central ban. - and what has been
missed is recorded in the statistical discrepancy term (the balancing item).
!9#
1n actual balance sheet will typically have numerous sub headings under the
principal divisions. ,or e&ample, entries under Current account might include/
Trade - buying and selling of goods and services
o Exports - a credit entry
o Imports - a debit entry
Trade balance - the sum of :&ports and Imports
Factor income - repayments and dividends from loans and investments
o Factor earnings - a credit entry
o Factor payments - a debit entry
Factor income balance - the sum of earnings and payments.
:specially in older balance sheets, a common division was between visible and
invisible entries. ;isible trade recorded imports and e&ports of physical goods
(entries for trade in physical goods e&cluding services is now often called the
merchandise balance). Invisible trade would record international buying and
selling of services, and sometimes would be grouped with transfer and factor
income as invisible earnings.
!%#
The term "balance of payments surplus" (or deficit - a deficit is simply a negative
surplus) refers to the sum of the surpluses in the current account and the narrowly
defined capital account (e&cluding changes in central ban. reserves). <enoting the
balance of payments surplus as $'( surplus, the relevant identity is
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Table-1
$alance of payments !=onthly <ata#
(In million US$)
Items
2012-
13
July-
Jan
2013-
14R
July-
Dec
2013-
14P
July-
Jan
%
Can!es
4 o"er 2
" % 6 9 >
Tra#e balance -9%?5 -%96@ -%4?4
:&port f.o.b.(including :(A) "95>4 "9>"" "4%%4 ">."?
'f which / Beadymade garments "%393 ""56% "9"46 "4.4%
Import f.o.b (including :(A) "5%9@ "@594 %33"9 6.55
$er"%ces -"56? -"?55 -%%99
Credit "@"? "@4@ "56> "5.>5
<ebit 6>>@ 6>4> 9"45 "4.>%
Pr%mary %ncome -"65" -""3@ -"%4%
Credit ?6 "35 "%? >9.%%
<ebit "949 "%"> "933 ->.3%
'f which/ 'fficial interest payments %@6 %"3 %@%
$econ#ary %ncome 53@9 4"6@ ?9%6
'fficial transfers 9> "@ %%
(rivate transfers 53"5 4"%3 ?93" -@.?>
'f which / +or.ers remittances(current
a7c portion)
?@64 @4%4 45@> -4.4?
Current &ccount Balance "99@ "@5> %"%3
Ca'%tal account 66% %"@ %??
Capital transfers 66% %"@ %??
(%nanc%al account %%%5 %>5 -"49
,oreign direct investment (net) 56? ?93 5?3 9.9?
(ortfolio investment (net) "45 %49 664
'f which / +or.ers remittances(financial @@ >% >%
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a7c portion)
'ther investment (net) """% -?>> -"95"
=edium and long-term (=DT) loans ""44 "344 "%>5 @.54
=DT amorti)ation payments @"9 9?? @?@ "".46
'ther long term loans (net) -% >@ @"
'ther short term loans (net) 669 -%@> -9>3
Trade credit (net) "66 -""%@ -">43
<=$s and E$<Cs (net) ?9 -"35 -"3>
1ssets -%> "9> 96?
Diabilities >5 6@ 666
)rrors an# om%ss%ons -"345 6"3 >%@
O"erall Balance %5%? %9?3 %4@3
Reser"e &ssets -%5%? -%9?3 -%4@3
$angladesh $an. (net) -%5%? -%9?3 -%4@3
1ssetsF %>95 %@6" %@@3
Diabilities -645 ">" -"33
*emoran#um Items +
Gross reserves (before valuation
adHustments)
"%5"6 "45%@ "454>
;aluation 1dHustment <uring the (eriod "@9 "95 "99
Gross reserves (after valuation adHustments) "6344 "?34> "?""5
In months of imports of goods and services 9.3" >.6 >.%
F Eote/ :&ports and Imports both are compiled on the basis of shipment data
B/Bevised, ( / (rovisional
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Table-2
:&port shipments reported by :($ !=onthly#
(In million US$)
Items
2012-
13R
July-Jan
2013-
14RP
July-Dec
2013-14P
July-Jan
%
Can!es
4 o"er 2
" % 6 9 >
". Baw Hute I
Jute goods
>5".?? 9"@.9@ 9@@."4 -%".%9
%.Beadymade
garments
"%365.>> ""56%.% "9"46.%6 "4.4%
6.,ro)en food 66%.9@ 644.9% 9"?.49 %>.5>
9. Deather "5?.5@ %65.9> %?5.%> 9>.6?
>. 'thers "55"."@ "4%3.%? %35%."5 >.34
Total" (1s
recorded by
:($)
">">9.3" "9@?>.?" "4965.>? ">.3?
'f which
:(As e&port%
%"%6."4 %""@.?> %>35.64
:&ports
shown in $'(
(1dHusted)
"95>4.3" "9>"3.4" "4%%@.>? ">."4
Source/ :&port (romotion $ureau, B/Bevised, ( /
(rovisional
"7
<ata compiled by :($ based on custom returns including
e&port from :(A.
%7
<ata collected from $:(A1 (:&port Shipment).
Page 7 of 18
Table -3
:&port receipts recorded by $$ !=onthly#
(In million US$)
Items
2012-
13R
July-Jan
2013-
14RP
July-Dec
2013-14P
July-Jan
%
Can!es
4 o"er 2
" % 6 9 >
". Baw Hute I
Jute goods
>6@.@? 93>.%9 9@%.?% -"6.4@
%.Beadymade
garments
?5"".@4 53>5.6? "3@>6.@? "5.>>
6.,ro)en food %63.%% %53.?6 6%4.65 9%.%"
9. Deather "?>.? %%5.6 %46.66 94.""
>. 'thers "%45.%% ""%%.64 "6">.3@ %.?
Total
(e&cluding
:(A)6
"""96.>5 """34."% "636%.%? "@.5>
@. :&port by
:(A
enterprises
%"%6."4 %""@.?> %>35.64 "?."5
Grand Total
(including
:(A)
"6%@@.4@ "6%%6.54 ">>9".@> "4.">
Source/ $angladesh $an.,
"7
<ata compiled by :($ based on custom returns including
e&port from :(A.
%7
<ata collected from $:(A1 (:&port Shipment).
67
<ata compiled by $angladesh $an. based on e&change
control returns.
B/Bevised, ( / (rovisional
Page 8 of 18
Table-4
Commodity wise e&port shipments (=onthly <ata)
(In million US$)
Items
2012-
13R
July-Jan
2013-14R
July-Dec
2013-14
P
July-Jan
%
Can!es
4 o"er 2
" % 6 9 >
1. ,ro)en food 66%.9@ 644.9% 9"?.49 %>.5>
". ,ish 6@.%4 %9.@? 63.93 -"@."?
%. Shrimps %44.@@ 66".65 6@9.6" 6".%"
6. 'thers "?.>6 %".6> %9.36 %5.@?
$. 1gricultural products %5@.%6 %@>."6 6"%.3> >.69
". ;egetables >@.%9 @@."5 4>.94 69."5
%. Tobacco 99.>> 6>.%4 99."9 -3.5%
6. Cut flower %4."9 %"."" %6.53 -"".59
9. ,ruits 9".96 5.@3 5.5% -4@.3@
>. 'thers "%@.?4 "6%.5@ ">?.@% %>.36
C. =anufactured
products
"9>%>.6% "9396.%@ "@43?.45 ">.36
". (etrolium bi-products "?>.?" 44.?@ "3%.%? -99.5>
%. Chemical products >@.%" 9?.%? >?.@6 9.6"
6. (lastic products 9?.5" 6?.%% 9>.?6 -@.6
9. Deather "5?.5@ %65.9> %?5.%> 9>.6?
>. Cotton I cotton
products
43.9> >4.?6 43."> -3.96
@. Baw Hute "6@.69 >5.3> @?.?3 -95.>9
"3. Jute goods 9>>.>9 6>4.9" 654.64 -"%.44
"". Specialised te&tiles 43.4% >?.9% @?.44 -%.4@
"%. Knitwear >5%3.?> >59?.@5 @559.>% "?."6
"6. +oven garments @""?.43 >5?6.>" 4"4?.4" "4.6%
"9. 2ome te&tile 996.3" 6>3.%3 99%.9% -3."6
">. ,ootwear %>9.6? %?>.5@ 66?.?> 66.%"
"@. :ngineering
products
%"6.@> "4@.34 %34."3 -6.34
"4. Ships, boats I "."9 3.3@ 3.3@ -59.49
Page 9 of 18
floating structures
"?. 'thers 6>3.@> 6@%.%> 99@.3> %4.%"
Total (1L$LC) ">">9.3" "9@?>.?" "4965.>? ">.3?
'f which e&ports from
:(A
%"%6."4 %""@.?> %>35.64 "?."5
Eote/ Compiled by Statistics <epartment of $angladesh $an. using the data of :&port (romotion
$ureau
Page 10 of 18
Table-,
Summari)ed import statistics recorded by
customs !=onthly#
(In million US$)
Items
2012-
13R
July-
Jan
2013-
14RP
July-
Dec
2013-
14P
July-
Jan
%
Can!es
4 o"er 2
" % 6 9 >
". ,ood
grains
%4@.4 9>4.4 >@4.@ "3>."6
%. :dible
oil
"?6".% "6@4.% ">9".? -">.?
6.
(etroleum
products
"@?>.? "6?".? "@@" -".94
9. Baw
cotton and
yarn
%355.@ "?44." %%66.4 @.65
>. Te&tile
and articles
thereof
%?63.4 %>>" 63"9.> @.95
@. Capital
machinery
"6>%.> ""4@." "65% %.5%
4. 'thers 55?5.@ ?4%>.9 "3%>4.6 %.@?
$ub Total %33@@." "4>6@.6 %3@@4.5 6
?. Import
by :(A
enterprises"
"63@.5 "%?9.5 ">>5.9 "5.6%
-ran#
Total . c /
f 0
%"646 "??%".% %%%%4.6 9
Source/ Eational board of Bevenue, =inistry of
finance, ( / (rovisional
Page 11 of 18
Table-1
Commodity-wise import statistics recorded by
customs!=onthly#
(In million US$)
Items
2012-
13R
July-
Jan
2013-
14RP
July-
Dec
2013-
14P
July-
Jan
%
Can!es
4 o"er 2
" % 6 9 >
&2 (oo# -ra%ns %4@.4 9>4.4 >@4.@ "3>."6
". Bice "% 9@." >?.> 6?4.>
%. +heat %@9.4 9"".@ >35." 5%.66
B2 Consumer
!oo#s
%46>.@ %"%3." %9%3.> -"".>%
". =il. I
cream
"6%.4 "3%.4 "64." 6.6%
%. Spices 9%.? >5.6 @>.9 >%.?
6. :dible oil "?6".% "6@4.% ">9".? -">.?
9. (ulses (all
sorts)
%"4.@ "@>.9 "?@.% -"9.96
>. Sugar >"".6 9%>.> 953 -9."4
C2Interme#%ate
-oo#s
"%%"".> "3@56.9 "%@@5.@ 6.4>
". Clin.er 6"3.5 %@@.? 6"5.5 %.?5
%. Crude
petroleum
>?." ".> ".> -54.9%
6. ('D "@%4.4 "6?3.6 "@>5.> ".5>
9.'il seeds "54.@ "?4.@ %">.? 5.%"
>. Chemicals ?34." 4@% 53> "%."6
@.
(harmaceutical
products
"%>.6 ""@." "69." 4.3%
4. ,ertili)er 569.5 >?6.@ @?3.% -%4.%9
?. <yeing and
tanning materials
%>9.@ %9%.5 %?4.> "%.5%
5. (lastics and
rubber articles
?44.@ ??%.5 "363." "4.6?
Page 12 of 18
thereof
"3. Baw cotton ""5@.9 "35@.6 "%5>.4 ?.6
"". Marn 536.% 4?3.? 56? 6.?>
"%. Te&tile and
articles thereof
%?63.4 %>>" 63"9.> @.95
"6. Staple fibre 9@?.% 9>?.5 >99.? "@.6@
"9. Iron, steel
I other base
metals
"@"5.% "6?%.4 "@96 ".94
D2 Ca'%tal
-oo#s
9953.@ 655?.% 9494." >.4"
Capital
machinery
"6>%.> ""4@." "65% %.5%
'thers 6"6?." %?%%." 66>>." @.5%
)2 Oters n2%2e2 "@>?.@ ">>".? "?%%.> 5.??
-ran# Total %"646 "??%".% %%%%4.6 9
Of 3%c+ )P4 "63@.5 "%?9.5 ">>5.9 "5.6%
Source/ Statistics <epartment, $angladesh $an., ( /
(rovisiona
Table-5
Page 13 of 18
$angladesh Services and income account !=onthly#
(In million US$)
Items
2012-
13R
July-
Jan
2013-
14RP
July-
Dec
2013-
14P
July-
Jan
%
Can!es
4 o"er 2
" % 6 9 >
$er"%ces .6et0
-
"564.?
-"?5?.5
-
%%99.%
Rece%'ts "@"?.% "@4@.6 "569.5
Transportation %>3.3 %>".4 %53.@ "@.%9
Travel @3.@ 43.@ ?6.5 6?.9>
Telecommunications, computer and
information services
%3@.> %3>.5 %6?.@ ">.>9
'ther business services "?3.5 "56.@ %%>.> %9.@>
Government services ?"4.% ?@@.? 55?.6 %%."@
'thers n.i.e. "36.3 ?4.4 5?.3 -9.?>
Payments 6>>@.3 6>4>.% 9"45."
Transportation %@%3.@ %4%?.4 6"93.3 "5.?%
Travel %"9.9 %"@.? %94.5 ">.@6
'f which / 2ealth related services 3.@ 3.? ".%
:ducation related services 4".9 @@.6 45.>
Telecommunications, computer and
information services
"?.6 "6.9 ">.> -">.63
'ther business services "5?.@ "?9.> %6?.% "5.59
Government services %9".5 "@".3 "?9.3 -%6.59
'thers n.i.e. %@%.% %43.? 6>6.> 69.?%
Pr%mary Income .6et0
-
"653.9
-""3@.3
-
"%4%.9
Rece%'ts ?6." "3?.? "%4.> >6.96
Investment Income 43.@ 54.3 ""6.>
<irect investment 3.3 3.@ ".6
'f which interest 3.3 3.3 3.3
(ortfolio investment 3.3 3.3 3.3
'f which interest 3.3 3.3 3.3
'ther investment 43.@ 5@.9 ""%.%
Page 14 of 18
of which interest 9.3 6.@ 9.3
'thers n.i.e. "%.> "".? "9.3
Payments "946.> "%"9.? "655.5 ->.33
Investment Income """6.9 ?5%.6 "3%>.>
<irect investment ?9>.5 @43.4 49?.%
'f which interest 3.3 3.3 3.3
(ortfolio investment >5.% @@.? 45.>
'f which interest ".4 %.4 6.%
'ther investment %3?.6 ">9.? "54.?
'f which interest %34.> ">9.4 "54.4
Beinvested :arnings 6>?.@ 6%".% 64%.5
'thers n.i.e. ".> ".6 ".>
Source/ Statistics <epartment $angladesh $an., B/Bevised, ( / (rovisional
Table-7
Page 15 of 18
Summari)ed import payments
statistics!=onthly#
(In million US$)
Items
2012-
13R
July-
Jan
2013-
14RP
July-
Dec
2013-
14P
July-
Jan
%
Can!es
4 o"er 2
" % 6 9 >
". ,ood
grains
9>".6 436.9 ?3?." 45.3@
%. :dible
oil
?3".> ?@6.9 "366." %?.5
6.
(etroleum
products
%?95.? %"@4.? %@>%." -@.59
9. Baw
cotton and
yarn
"56>.5 "?%?.9 %">>.5 "".6@
>. Te&tile
and articles
thereof
"?%" "4@9." %""%.5 "@.36
@. Capital
machinery
"3?4.9 "3>4." "%@6.5 "@.%6
4. 'thers 59??.5 5?%@.% "">@4.@ %".5"
$ub Total "?96>.? "?%"3.9 %">56.@ "4."6
?. Import
by :(A
enterprises"
"6?@.> "%9".9 ">3%.? ?.65
-ran#
Total . c /
f 0
"5?%%.6 "59>".? %635@.9 "@.>%
Source/ Statistics <epartment, $angladesh $an. , ( /
(rovisional
"7
Compiled on the basis of import data received from
$:(A1.
Page 16 of 18
Conclus%on
Dast but not the least, :rrors and 'missions are also considered in $alance
of (ayments. In $angladesh errors and omissions are the difference between the
current account and capital I financial account. If we will success to minimi)e the
errors and omissions account then the overall balance will be increased. Eew
items such as handicraft and cottage goods should be implemented to e&port.
It will be a good source of foreign revenue. $angladesh have also an
opportunity to implement the beach of Co&Ns $a)aar to catch the eye of
foreigners, it will also a good source of revenue. 1t (resent $angladesh has to
provide necessary incentives to the ,<I that will increase the capital account and
thus overall balance. 1lso $angladesh has to search new country to e&port labor.
1s we .now the remittance is the highest source of Current transfer of
$angladesh which plays an important role in increasing the overall balance.
Page 17 of 18
=ebsite:
> http:?? 888.bangladesh/ban$.org?
> http:??mpra.ub.uni/muenchen.de?-0.59?
> http:??888.nationsencyclopedia.com?'sia/andOceania?Bangladesh/B'&'*36/
O"P'@M6*TS.htmlAbAi#++.rKmBCtKn
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