The opening of letters of credit for imports rose in September, but it dropped slightly in the July-September period in the financial year 2024-25 compared with that in the same period in the previous year.
According to Bangladesh Bank data, LC opening increased to $6.7 billion in September compared with that of $5.37 billion in September in the past year.
LC opening declined by 6.74 per cent to $15.59 billion in July-September in FY25 compared with that of $16.71 billion in the same period in FY24, the BB data showed.
In July-August, there were business disruptions in the country amid a student-led mass uprising against the authoritarian rule of Awami League government.
On August 5, Sheikh Hasina-led Awami League government was ousted.
Bankers said that business activities started recovering at the beginning of September although some uncertainties still persisted.
Government imports might also contribute to the surge in LC opening in September, they said.
In July-September, the data showed a significant decrease in LC opening for capital machinery and petroleum imports, which fell by 40.9 per cent and 26 per cent respectively, compared with those in the same period of the previous year.
LC settlement also declined marginally to $16.21 billion in July-September in FY25 from $16.61 billion in the same period in the previous year.
The country has been facing a serious dollar shortage since 2022.
The Bangladesh Bank provided dollars from its foreign exchange reserves to meet high demand for the government imports.
Bangladesh鈥檚 gross foreign exchange reserves, according to International Monetary Fund guidelines, reached $19.8 billion on October 23 from $46 billion in December 2021.