Import LC opening in Bangladesh up by 25% in May despite dollar crisis

06 Jun '23

1 min read

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Opening and settlement of import letters of credit rose by about 25 per cent and 10 per cent respectively in May compared to April, despite the dollar crisis.
New LCs worth $5.33 billion were opened in May, $1.03 billion more than in April.
LC settlements in the first 10 months of FY23 amounted to $62.40 billion, reflecting a 8 per cent year-on-year drop.

Despite the dollar crisis, opening and settlement of import letters of credit (LCs) rose by about 25 per cent and 10 per cent respectively in May compared to the previous month.

New LCs worth $5.33 billion were opened in May, $1.03 billion more than in April, Bangladesh Bank data showed. LCs worth $4.69 billion were settled by banks in May.

LC opening reached a 32-month low in April due to restrictions imposed by the central bank and the ongoing dollar crisis. LC settlement reached a 21-month low during that month.

Import LCs worth only $4.30 billion were opened last April, while settlement amounted to $4.69 billion, Bangladesh media outlets reported.

Between July 2022 and April this year, a total of $56.36 billion worth of import LCs were opened, marking a 27 per cent decline compared to the same period in the previous fiscal.

LC settlements in the first 10 months of the current fiscal amounted to $62.40 billion, reflecting a nearly 8 per cent year-on-year drop.

LC openings for industrial raw materials like textile fabrics and chemicals fell by 32 per cent.

ALCHEMPro News Desk (DS)

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