Dhaka, Jan 9, 2008 (Xinhua): Bangladesh's trade deficit soared by more than 150 percent in the first four months of the current fiscal (July 2007-June 2008), dragging the current account balance to a negative 229 million U.S. dollars, Bangladesh's central bank said Tuesday.

The overall trade deficit rose to 1.739 billion U.S. dollars in July-October period, or 156 percent more than the corresponding period last year, owing largely to high oil and food import bill.

During the period, export earnings stood at 3.970 billion U.S. dollars against the import payments of 5.709 billion U.S. dollars, local newspaper The Financial Express reported Wednesday quoting the Bangladesh Bank's latest monthly economic indicators.

The soaring trade deficit pulled the current account to a negative 229 million U.S. dollars at the end of October although the overall balance of payments continued to maintain a surplus.

"Despite a larger current transfer of 2.416 billion U.S. dollars, current account balance recorded a deficit of 229 million U.S. dollars during July-October," the bank said.

A senior Bangladesh Bank official said current account deficit was not a major concern.

"We are not worried about the negative current account balance position. The central bank has a satisfactory level of foreign currency reserve and there has been robust growth in inward remittances," the official said.

He also said the overall balance of payments is likely to improve further as the country is set to receive more foreign aid to rehabilitate the victims of the devastating cyclone that hit the country in November last year.

@ The Bangladesh Journal