bop_bd
TRANSCRIPT
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Balance of Payments
The balance of paymentsis a measurement of all transactionsbetween domestic and foreign residents over a specified period of
time. The transactions are presented in three groups a currentaccount, a capital account, and a financial account.
The current accountsummarizes the flow of funds between onespecified country and all other countries due to the purchases ofgoods or services, the provision of income on financial assets, or
unilateral current transfers li!e gift, grants, private remittances". #current account deficit suggests a greater outflow of funds li!eimport" than inflow of funds li!e e$port" of the specified country for itscurrenttransactions.
The current account includes the balance of trade, which is simply thedifference between merchandise e$ports and merchandise imports.
Capital accountrecords the transfer of non financial assets li!e landor machines.
Financial accountrecords inflow and outflow of foreign aid, and
%oreign &irect 'nvestment.
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The new capital accountas defined in the 1993 System ofNational Accountsand the fifth edition of '(%)s Balance ofPayments Manual" is adopted by the Bangladesh in 1**+.-. in 1***".
't includes unilateral current transfers that are real shifts in
assets, not current income. e.g., debt forgiveness,transfers by immigrants, the sale or purchase of rights tonatural resources or patents.
The financial accountwhich was called the capital account
previously" summarizes the flow of funds resulting from thesale of assets between one specified country and all othercountries.
#ssets include official reserves, other government assets,
direct foreign investments, investments in securities, etc.
Balance of Payments ontd."
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urrent #ccount of Balance of Payments
2013-2014
2014-15
A. Trade balance -6794 -9917 Export f.o.b.(including EPZ) 29777 30768
Import f.o.b (including EPZ) 367! "068
#. Services -4099 -4628
$r%dit 3!! 30!7
&%bit 72!" 76"
$. Primary incme -2635 -2995
$r%dit !3! 7"
&%bit 2766 3069
'f ic* '+ci,l int%r%-t p,m%nt- "27 "0"
!. Secndary incme 14934 15895
'+ci,l tr,n-f%r- 83 7
Pri/,t% tr,n-f%r- !"8! !820 'f ic * or1%r- r%mitt,nc%-(curr%nt
,c portion) !"!!6 !!70!. "#rren$ Acc#n$ %alance &A'%'"'!( !"06 4!6"
/
Million US $
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Balance of Payments 01/2134013215
1. "#rren$ Acc#n$ %alance &A'%'"'!( 1406
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16452. "a)i$al acc#n$ 598 4913. *inancial acc#n$ &a'b'c( 2813 5150 ,. 5or%ign dir%ct in/%-tm%nt (n%t) !"32 !700 b. Portfolio in/%-tm%nt (n%t) (Incl. ,g% E,rn%r-bond !!3 m) 937 6!8
c. 't%r in/%-tm%nt (n%t) (i4iiiiii///i) """ 2832 i. %dium ,nd long4t%rm (:;) lo,n- 2"0" 2""" ii. :; ,morti
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mport Composition
+$ems 2013,142014,1
5
Percen$2013,14
Percen$2014,15
A. *d rains &ice '/ea$( 906 1490.7 0.02 0.03 %. "ns#mer ds 4504 4426.1 0.11 0.10 !. il1B Cpic%B Pul-% @ -ug,r !8 !682.6 0.0" 0.0" 2. Edibl% oil 29"6.3 27"3. 0.07 0.06
". +n$ermedia$e ds 23176.3
26153.
4 0.57 0.58 !. $lin1%rB $%mic,l 22!0.7 2362.! 0.0 0.0 2. P%trol%umB oil ,nd :ubric,nt 3""3.8 08. 0.08 0.!! 3.'il -%%d- "3.6 37" 0.0! 0.0! ". P,rm,c%utic,l product- 2!0.8 !36.9 0.0! 0.00 . 5%rtili
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9$port omposition
2013-
142014-
15Percen$14,15
Edit%d(!"!)
Percen$
>. 5rogricultur,l (F%g%t,bl%-B ;ob,ccoB 5lo%rB 5ruit- @'t%r- 6! 86 0.02 86 0.05
$. ,nuf,ctur%d product-2893
3300"
" 0.96G!. P%trol%um bi4product-B $%mic,l @ pl,-tic 3"! 290 0.01 290 0.03
2. :%,t%r ,nd foot%,r 677 87 0.02 87 0.05 3. A, Hut% @ ut% good- 82" 869 0.03 869 0.08 ". $ottonB cotton productB -p%ci,li-%d t%xtil%- ,ndom% t%xtil% !0!7 !0!8 0.03
. Jnit%,r!20
0!2"2
7 0.40
6. o/%n g,rm%nt-!2""
2!306
0.42
AK C%ctor ("6)20
926!
0 0.856627 0.59 7. Engin%%ring product-B -ipB bo,t- @ Lo,ting-tructur% 367 "63 0.01 "63 0.04 8. 't%r- !2! !326 0.04!326 0.12
;ot,l (>#$) 30!87 3!!98 1.00!!3!6 1.00:
Million US $
7ote8 ;ine of e$port is narrowly concentrated. %igures of
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ountry4wise .E. 0.26 0.28 0.29 0.3! 0.32 0.3!
:ib, 0.00 0.00 0.00 0.0! 0.0! 0.0!
Ir,n 0.00 0.00 0.00 0.00 0.00 0.00;ot,l !.00 !.00 !.00 !.00 !.00 !.00$ontribution of iddl% E,-t totot,l 0.66 0.62 0.6 0.63 0.9 0.9
>
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u-tr,li, 0.00 0.00 0.0! 0.0! 0.0! 0.0!
Oong1ong 0.00 0.00 0.0! 0.00 0.00 0.00
It,l 0.02 0.0 0.0 0.0" 0.0 0.0"
,l,-i, 0.0 0.!6 0.!9 0.!9 0.!8 0.22
Cing,por% 0.02 0.0 0.07 0.09 0.07 0.07
N.J. 0.08 0.20 0.22 0.!9 0.! 0.!3
N.C.>. 0.!3 0."2 0.33 0.3 0."0 0.38
K%rm,n 0.00 0.0! 0.0! 0.00 0.00 0.00
H,p,n 0.00 0.00 0.00 0.00 0.00 0.00C.Jor%, 0.00 0.0! 0.0! 0.0! 0.0! 0.0!
't%r- 0.0" 0.!! 0.!0 0.!0 0.!! 0.!3
Cub tot,l 0.3" 0.38 0.3 0.37 0."! 0."!;ot,l (illion NC) !0987 !!60 !28"3 !""6! !"228 !3!7
+
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'(%)s %unding %acilities
1. Permanent facilities for general balance of payment support such as
a"
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c" 9mergency assistance facility is provided in two cases8 in the wa!e ofnatural disaster and of political turmoil, civil unrest and international armedconflict The first one was created in 1*:0 and the second one in 1**5.". # long term assistance to address
B?P problems through poverty reducing growth program. 'nterest rate is.5C and repayable in 1 years. b" 9$ogenous shoc! facility 0:" addresses temporary B?P shoc!
arising out of temporary shoc! among low income countries. 'nterest rateis .5C and payable in 1 years time.
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redit ;ines of Dorld Ban!4'(%
-pecial &rawing
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%eatures of '(% -tabilization Pac!age
#bolition of 'mport control 'mport liberalization &evaluation of the official e$change rate %amiliarization of mar!et mechanism and with drawl
of subsidies
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1/
onclusion8
#ll these features represents globalization.Bangladesh had to depend on foreign aid,particularly the Dorld Ban!4'(% financing for themanagement of her balance of payment crisis.-o, Bangladesh is now more globalized acountry than the comparable countries li!e 'ndiaand Pa!istan.
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9ffectiveness of &evaluation
61ET!
? F1 F0 F/ F3
&
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T!.55
T!.5 -ource Before #fter 9ffect
9$port ?F1 ?F0 'ncrease
'mport ?F3 ?F/ &ecrease
&eficit F1F3 F0F/ &ecrease
onte$t8 Bangladesh made use ofalmost all credit lines of '(%4DorldBan!. &evaluation is a condition ofstabilization pac!age of some of these
credit lines. &uring the period 1*>540/ Bangladesh devalued its currencyfor more than hundred times by thesuggestion of '(%. The argument is8
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'neffectiveness of &evaluation8Bangladesh case
61ET!
? F1 F0 F3 F/
&1
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T!.55
T!.5
&0
-ource Before #fter 9ffect
9$port ?F1 ?F0 increased slightly
'mport ?F3 ?F/ 'ncreased a lot
&eficit F1F3 F0F/ 'ncreased
omposition of e$port suggests thatmost of the items have less elasticityof supply. -imilarly, composition ofimport shows inelasticity of demand.
The demand curve shifts right aswell.