Bangladesh import credit openings reach 53-month high

Bangladesh opened $8.10 billion in import letters of credit (LCs) in September, the highest monthly total in 53 months, as fuel and raw material costs rose, a Bangladesh Bank official told The Business Standard.

Openings increased 22.37% from $6.62 billion a year earlier. Settlements totaled $6.38 billion. Bankers said higher prices, particularly for petroleum products and fertilizer, drove more of the increase than import volume.

Merchandise imports rose more than 12% during July and August to $12.20 billion, while the trade deficit reached $3.82 billion.

Hassan O Rashid, managing director of Prime Bank, said raw material imports had increased somewhat and could indicate improving business momentum. Bank officials said sufficient dollar liquidity meant businesses faced no major restrictions opening LCs.