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Balance of Payment in BD

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Balance of Payment

An overview of last15th years performance of Bangladesh


An assignment of international financial management
Course code:FIN-505
Submitted to
Mohammad shah shuja bin jabber
Lecturer
Department of finance
University of liberal arts bangladesh

Submitted by,
Sheikh Sabrina ferdous
Id:123051023

University of liberal arts Bangladesh

Balance of Payment
1991-2011
Jagannath University Department of Finance
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This is an assignment which we have prepared to fulfill the requirement of
the courseInternational Trade and Finance(FIN-3207). This following
assignment has beenassigned to us by our course teacher of International
Trade and Finance, Saud Ahmed.This assignment reflects about our depth
understanding about the Balance of Payment.Balance of payment of any country
is a systematic record of all economic transactionsbetween the residents of
that country and of the residents of the rest of the world in anaccounting
period. The balance of payment transactions include all the receipts of
andpayments by a country during a given year.The Bangladesh Bank follows a
classificatory scheme for BOP presentation as per the5th edition of the IMF's
Balance of Payments Manual

(BPM5).

The Balance of Payments is a statistical statement for a given period showing


Transactions in goods,services and income between an economy and the rest of
the world; Changes in theeconomy's monetary gold, special drawing rights
(SDRs) and other financial claimson and liabilities to the rest of the world;
Transfers and counterpart entries that areneeded to balance, in an accounting
sense, any entry for the foregoing transactions andchanges which are not
mutually offsetting.The main objectives of this assignment are:

To gather knowledge broadly about Balance of Payment.

To know the trends of Balance of Payment of Bangladesh.

To know about the real accounting method and format used to calculate
theBalance of Payment in Bangladesh which however cannot be
understoodproperly by reading books and studying in classrooms.
To gain an in-depth knowledge about how different accounts are
recorded,calculated and what are their impact in the overall Balance of
Payment.

To gain knowledge practically through analysis of the year to year up anddown


of the Balance of Payment.
IntroductionO b e c t i v e s

Balance of Payment
1991-2011
Jagannath University Department of Finance
3 |P a g e
This assignment has been completed by taking information from primary
andsecondary sources. We have completed our assignment by taking information
fromdifferent journals from Bangladesh Bank regarding Balance of Payment
of Bangladesh. We have also taken information from different websites.While
preparing this assignment, we faced some limitations in terms of having
poorknowledge regarding different elements and steps of Balance of Payment.
Althoughwe had this limitation, however we have tried our level best to
fulfill the objectives of this assignment properly.
Limitation Methodology
Balance of Payment
1991-2011
Jagannath University Department of Finance
1 |P a g e
Name Page No
Acknowledgement iExecutive Summary ii
Part - IIntroduction 2Objectives 2Methodology 3Limitation 3Part - II
Overview of Balance of Payment
4Balance of Payment 4Components of balance of payment 4A Comparative Difference Between
BPM 4 and BPM 5 5
Current Account
5Goods Account 5Services Account 6
Income
9
Current Transfers
10
Recent Current Account of Bangladesh
11
Imports of goods and services
11
Major Import Items of Bangladesh
12
Recent Imports of Bangladesh
12
Exports of goods and services
12
Major Export Items of Bangladesh
12
Recent Exports of Bangladesh
13
Bangladesh Balance of Trade
13
Capital and Financial Account
14Capital Account 14Financial account

14
Recent Capital Account of Bangladesh
15
Incentives and Facilities for Investors
16
Other Incentives
16Part-IIIConclusion 18Appendix 19
TablesTable 1:
A Comparative Difference Between BPM4and BPM 5

5
Table 2:
Balance of Payment Tables 20G
raph
Graph 1: Balance of Trade 8Graph 2: Balance of Services Account 10Graph 3: Unilateral/C
urrent Transfer Account 11Graph 4: Current Account 13Graph 5: Capital Account 15Graph 6:
Balance of Payments

17Graph 7: Foreign Exchange Reserve Account 19Graph 8: Exchange Rate 19Bibliography 21


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