LCs worth $68.19b opened in FY24

The country's importers opened letters of credit (LCs) worth $68.19 billion in the fiscal year 2023-24, up by 1.85 per cent from that in the previous year, according to Bangladesh Bank (BB) data.

During the fiscal year 2022-23, the amount of LC opening was $66.95 billion.

On the other hand, it was recorded at $90.43 billion in FY 2021-22.

According to the central bank data, settlement was recorded at $66.0 billion against the LCs opening worth $68.19 billion in FY 2023-24.

However, the settlements were recorded at $72.91 billion in FY 2022-23.

The BB tightened imports due to dollar shortage in the market since mid-2022.

It has taken many steps, including keeping 100 per cent LC margin in opening import LCs, discouraging the import of luxury goods since then leading to a fall in imports.

At the same time, the regulator sold huge dollars from reserves to stabilise the forex market.

However, these types of restrictions brought down imports of capital equipment and raw materials, thereby impacting industrial units.

[email protected]