Bangladesh’s import activity rebounded in September after months of stagnation, with Letters of Credit (LCs) opened totaling $6.3 billion, up 17.3 percent from August’s $5.38 billion, according to Bangladesh Bank’s latest report.
The surge marks the first significant rise in LC openings in eight months, signaling renewed momentum in trade. Bank officials attributed the increase to an improved dollar supply in commercial banks and the central bank’s relaxation of import restrictions. Most new LCs were issued for consumer goods, food items, raw materials, and government fertilizer imports.
Despite the uptick, LC volumes remain below January’s $6.84 billion. Officials said about $8 billion in monthly imports would be needed for the economy to operate at full capacity.
Bankers noted that political uncertainty ahead of national elections has delayed new investments, while private sector credit growth fell below 6 percent in August. Rising remittances and export earnings have strengthened foreign currency reserves, enabling banks to meet import demand ahead of Ramadan and the Christmas season.