Bangladesh importers opened letters of credit (LCs) totaling $68.19 billion in FY24, marking a 1.85% increase from the previous year, according to Bangladesh Bank (BB) data.
In FY23, the amount of LC openings was $66.95 billion.
In FY22, it was recorded at $90.43 billion.
Central bank data also showed that settlements were recorded at $66.0 billion against the $68.19 billion in LC openings in FY24.
In comparison, settlements in FY23 were recorded at $72.91 billion.
The central bank tightened imports due to a dollar shortage in the market since mid-2022.
Measures included maintaining a 100% LC margin for opening import LCs and discouraging the import of luxury goods, leading to a reduction in imports.
Additionally, the regulator sold large amounts of dollars from reserves to stabilize the forex market.
However, these restrictions also reduced imports of capital equipment and raw materials, impacting industrial units.
