Overall trend of opening LCs rises by 16.93pc in May

FE Report

The overall trend of opening of fresh letters of credit (LCs) against imports increased by 16.93 per cent in May last compared to that of the corresponding period of the previous year, official sources said.

Both opening and settlement of import LCs of some essential items including rice, sugar, edible oil and chemical fertiliser rose during the period, the sources added.

Import LCs worth US$1535.94 million were opened during the period against $1313.60 million of the corresponding period of the last year, the Bangladesh Bank (BB) data showed.

"The existing import trend is satisfactory, given the country's overall economic performance," a BB senior official told the FE Wednesday.

He also said the rising tread of opening of LCs against imports may continue in the near future to meet domestic demand for some commodities.

According to the central bank provisional statistics, the opening of LCs for rice increased by $41.31million in terms of value, for sugar by $16.47 million, edible oils by $14.32 million and chemical fertiliser by 7.68 million.

Most of commercial banks are now pursuing importers for opening fresh LCs for essential commodities to meet the growing demand for such items in the local markets, sources in the banking sector said.

"The banks are maintaining a flexible policy in some cases to facilitate opening of the LCs for imports," a senior official of a private commercial bank told the FE Wednesday.

On March 12 last, the central bank instructed the banks to promote businesses, particularly small and medium ones, for opening fresh LCs against imports to ensure sufficient supply of commodities in the markets.

The BB also asked the banks to be flexible while opening fresh LCs for import of essential commodities.