Bangladesh’s Balance of Payments (ratios to GDP) – Current account balance
The balance of payments is a summary of all monetary transactions between Bangladesh/ A country and rest of the world.Thus the balance of payments includes all external visible and non-visible transactions of a country.The current account shows the net amount of a country’s income if it is in surplus, or spending if it is in deficit. It is the sum of the balance of trade (net earnings on exports minus payments for imports), factor income (earnings on foreign investments minus payments made to foreign investors) and cash transfers
First, the balance of payments provides detailed information concerning the demand and supply of Bangladesh/ a country’s currency. For example, if Bangladesh imports more than it exports, then this means that the quantity supplied of Taka by the domestic market is likely to exceed the quantity demanded in the foreign exchanging market . The balance of payments data can be used to evaluate the performance of the country in international economic competition. Suppose a country is experiencing trade deficits year after year. This trade data may then signal that the country’s domestic industries lack international competitiveness