Imports, opening of fresh LCs fall last month

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FE Report
Imports fell in June this year as importers slowed activities following announcement of the national budget the same month, officials said Saturday.
"We expect that the country's overall imports will increase in the month of July ahead of the holy month of Ramadan," a senior official of the Bangladesh Bank (BB) told the FE.
He also said the imports normally decline in the month of June each year mainly due to the budget.
Opening of fresh letters of credit (LCs) against imports, generally known as import orders, fell by 5.03 per cent in June over that of the previous month of the current calendar year, according to the central bank statistics.
The settlement of LCs, generally known as actual imports, dropped by 9.49 per cent during the period under review over the previous month of this year, the BB officials added.
The import LCs worth $2.791 billion were opened in June this year compared to $2.940 in May last while the LCs against imports worth $1.932 billion were settled in June 2010 against $2.135 in May last, the BB's data showed.
Imports of essentials including rice, wheat and pulses increased in terms of both quantity and value in June over the previous month of this year, the BB officials confirmed.
They also said the central bank has taken necessary measures to increase the supply of essentials in the local markets during the Ramadan month.
On May 06 last, the BB asked the commercial banks to keep the lending rate on import financing for nine essential food items at maximum 12 per cent.
"The commercial banks have been directed to continue with the interest rates on the items for keeping the prices of essentials at a reasonable level before and during the holy month of Ramadan," another central bank official said.
In May 2009, the BB asked the commercial banks to bring down the lending rate for import financing for nine essential food items to a maximum of 12 per cent from 13 per cent.
The essentials are edible oil, gram, pulses, peas, onion, spices, date, fruits and sugar.