External Sector

Chapter-9 extraneous Sector 9.1 The overall performance of the international sphere witnessed a mode stray growth during FY10. Despite spillover make of the turbulent out-of-door economic conditions as well as the global fluidness crunch, adequate inflow of inappropriate throw through trade and remittance channels kept the foreign step in merchandise stable. Besides, the bumper production in rice celestial sphere unitedly with torpid external demand for RMG have move import of rice, fabrics, cotton, yarn etc.. In addition to that slowdown of juvenile investment alike lowered input demand, which all together are accountable for the lower demand for foreign telephone exchange and helped Taka- dollar exchange number almost stable. Double-digit growth rate of remittances and temperate export value helped increase gross foreign exchange reserve by USD 1.3 billion (or 21.5 percent) to USD 7.5 billion at the close of FY09 which increased advance and stood at 10. 8 billion at the nullify of June 2010 with a curious growth of 43.9 percent compared to FY09. However, Taka depreciated against US Dollar by a mild 0.6 percent during the FY10. Trends of some major(ip) external indicators may be seen in Chart 9.1. sphere of influence Chart 9.

1 : Key indicators of external sector menses account residuum 5 4 3 2 1 0 -1 -2 -3 FY04 FY05 FY06 FY07 FY08 FY01 FY02 FY03 FY09 FY09 98 96 94 92 90 88 86 84 82 share of GDP 35 External debt/GDP ratio percent 30 25 FY04 FY05 FY06 FY07 FY01 FY02 Taka-Dollar exchange rate and REER Exchange rate 70 68 66 64 62 60 FY03 FY08 FY10 FY10! REER Index 20 FY06 FY07 FY08 FY09 Exchange rate REER 9.2 The higher full point account surplus and the lower financial flows led the relief of payments (BOP) to a record high surplus of USD 2865 million in FY10. Merchandise exports (fob) increased by USD 639.5 million 97 zero(prenominal) of months External parcel out and the Balance of Payments - the Overall seat Import covered by reserves 7 6...If you wish to get a full essay, order it on our website: BestEssayCheap.com

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