Import letters of credit (LCs) openings in August were the highest in the last five months despite a decline in settlements due to the ongoing dollar crisis.
According to Bangladesh Bank data, import LCs worth $5.59 billion were opened in August, the second month of the current FY24.
LC opening has been dwindling since March, which saw $5.79 billion worth of LCs, hitting a three-year low of $4.23 billion in June, the last month of the last fiscal.
But imports started to pick up in the new fiscal year.
However, when compared year-on-year, LCs opening fell by 14% in August.
LCs worth $6.52 billion were opened in August 2022.
Meanwhile, LC settlements for imports declined more than 35% in August compared to the corresponding month last year.
From $7.69 billion in LC payments in August 2022, the figure fell to $5.38 billion in the same month this year.
In July, payments totalled approximately $6 billion.
Amidst these challenges, Bangladesh's foreign exchange reserves have dipped below $23 billion, with the central bank selling $2.3 billion from reserves in the first two months of the current fiscal year.