Bangladesh Bank

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Introduction
The Bangladesh Bank has been following a new classificatory scheme for BOP presentation as per the 5th edition of the IMF's Balance of Payments Manual (BPM5) since 1997-98. As defined by the International Monetary Fund, the Balance of Payments is a statistical statement for a given period showing :
a) Transactions in goods, services and income between an economy and the rest of the world;
b) Changes in the economy's monetary gold, special drawing rights (SDRs) and other financial claims on and liabilities to the rest of the world;
c) Transfers and counterpart entries that are needed to balance, in an accounting sense, any entry for the foregoing transactions and changes which are not mutually offsetting.
The standard components as shown in this publication correspond, as far as possible, with those detailed in BPM5. However, BOP numbers appearing in the Annual Report of the Bank may differ from those in the present brochure because though both the publications are based on BPM5, the BOP aggregates are presented somewhat differently in the Annual Report on analytical considerations. As per the basic conventions in accounting, balance of payments transactions are recorded in the form of double-entry book keeping, with each credit-entry exactly balanced by an offsetting debit-entry and vice versa. A credit entry records the provision of real resources denoting exports of goods and services and a decrease in holding of foreign financial assets or an increase in foreign financial liabilities.




REGIONS/COUNTRIES AND TERRITORIES
The Balance of Payments statements as included in this publication have been compiled
in respect of transactions with four countries :
the United Kingdom, the U.S.A., Canada and Japan and several country groups viz. European Union, Other European Countries, Organisation of Islamic Conference, Association of South-East Asian Nations, Other Asian Countries and Rest of the World. The aggregate of the regional BOP figures will not tally with those of the global BOP due to overlapping of some countries among the regions. The composition of country groups may change from time to time.


EXPLANATORY NOTES ON COMPONENT ITEMS
The standard components incorporated in the Bangladesh Balance of Payments statements are grouped under two major categories: 1) Current Account and 2) Capital and Financial Account. The Current Account includes : (A) Goods and Services, (B) Income and © Current Transfers offsetting provision or acquisition of economy's real or financial resources for immediate consumption without quid pro quo. The Capital and Financial Account is bifurcated into (i) Capital Account and (ii) Financial Account. The financial account shows transactions in financial assets and liabilities. Institutional sector and maturity of financial instruments are other classifications that are applied to some components of financial accounts.


Construction services
Construction services covers receipts for work abroad on construction projects and installation by personnel of resident enterprises and payments on account of salary and allowances paid to the personnel of nonresident enterprises engaged in construction project in Bangladesh.

Insurance services
Credit entries cover net premium on direct insurance and reinsurance assumed by resident insurance companies. Debit entries cover premium on merchandise insurance on imports, which are not available separately but are included in freight. An estimated 10 percent of import freights is treated as insurance.

Financial Services
Receipts by banks operating in Bangladesh from their offices and correspondents abroad and payments by banks to their branches and correspondents abroad on account of commission, cable charges including fees associated with letter of credit, bankers acceptances, lines of credit, financial leasing and other fees etc. are included under financial services.

Computer and Information Services
It covers receipts and payments on account of computer and news related services including data processing, hardware consultancy, software implementation, export of computer software, maintenance and repairs of computers and news agency services.

Royalties and License Fees
The item covers receipts and payments associated with the authorised use of intangible non-produced non-financial assets and proprietary rights, such as patents, copy rights, trademarks, industrial processes etc. and the use through licensing agreement of produced originals or phototypes such as manuscripts and films.