Overall imports in the country's external trade fell further in February following lower prices of fuel oils on the global market and the ongoing political unrest on the home front.
Officials said Sunday the opening of letters of credit (LC) against imports-generally known as import orders-decreased more than 9.0 per cent to US$ 3.05 billion in the month.
The LC figure was $3.37 billion in the corresponding period of the previous calendar year.
On the other hand, the settlement of LCs, generally known as actual imports, dropped nearly 5.0 per cent to $2.71 billion during the period under review from $2.85 billion in the same period in the previous year.
"The declining trend of imports, in value terms, continued in February last mainly due to lower prices of petroleum products on the global market and a prolonged political unrest," a senior official of Bangladesh Bank (BB) told the FE.
He forecasts that the overall imports might fall further in the coming months, if the ongoing political turmoil continued.
The country's overall imports went on a downturn in the month of January last, mainly due to the political turmoil over poll issues.
The import orders for fuel oils dropped by more than 61 per cent to $172.90 million in February from $448.25 million in the same month of the last calendar year.
"We're saving more than $200 million each month because of lower prices of petroleum products on the international market," another BB official explained.
Besides, import orders for different essential items, including scrap vessels, raw cotton and capital machinery, decreased during the period under review.
Import orders for scrap vessels came down to $23.48 million in February from $69.62 million in the corresponding period of 2014 while raw cotton import orders fell to $180 million from $236.47 million, BB data showed.
The import orders for capital machinery also came down to $194.50 million in February last from $198.24 million in the corresponding period of the previous year.
However, the central banker said, back-to-back import orders for readymade garment (RMG) products, including fabrics and accessories, increased last month despite the restive political situation.
During the period, the back-to-back import orders for RMG rose to $480.89 million from $466.26 million in the corresponding of 2014.
Talking to the FE, a senior official of a leading private commercial bank said most importers are now maintaining a 'go-slow' policy to avoid financial risks due to the rough political weather.
He also said the supply chain has been affected since January 05 following the countrywide blockade and shutdowns, enforced by the BNP-led 20-pary Alliance in its bid for a fresh general election.
siddique.islam@gmail.com
