BoP deficit reaches Rs.19.6b
In the first five months of 2009/10, the overall balance of payment (BOP) recorded a deficit of Rs. 19.60 billion compared to a surplus of Rs. 22.77 billion in the corresponding period of the previous year.
The current account also registered a deficit of Rs. 19.64 billion in the first five months of 2009/10 as against a surplus of Rs. 10.74 billion in the corresponding period last year. The increase in the trade deficit of goods by 52.8 percent has resulted in the current account deficit. Similarly, under the subgroups transfers; while grants declined by 25.7 percent in the first five months of 2009/10, workers’ remittances went up only by 10.4 percent compared to its significant growth of 65.8 percent in the corresponding period last year.
The gross foreign exchange reserves stood at Rs. 245.94 billion in mid-December 2009, a decline of 12.2 percent compared to that of mid-July 2009. However, such reserves went up by 10.8 percent in the corresponding period of the preceding year.
In US dollar terms, gross foreign exchange reserves decreased by 7.9 percent to US$ 3.30 billion in mid December 2009. During the same period last year, such reserves had decreased by 1.8 percent. The current level of reserves is sufficient for financing merchandise imports of 8.2 months and merchandise and service imports of 7.0 months.
