Trade deficit widened in August | Sunday Observer

Trade deficit widened in August

24 October, 2021

Increased financial inflows bolstered Gross Official Reserves (GOR) during August, while merchandise exports was over US dollars 1.0 billion for the third consecutive month. 

However, the increase of import expenditure outpaced the increase of export earnings, resulting in an expansion of the trade deficit, compared to a year earlier. 

A moderation of workers’ remittances was observed in August 2021.

The average spot exchange rate in the interbank market remained broadly stable in August 2021, while pressures on the exchange rate were observed towards the end of the month, prompting the Central Bank to intervene in the foreign exchange market to stabilise the rupee.