In February 2024, Bangladesh experienced a 20% year-on-year (YoY) increase in the opening and settlement of import letters of credit (LCs), amounting to $6.26 billion, a 19.92% rise from $5.22 billion in the same month last year. Import LC settlements also grew by 20.59% YoY, reaching $5.74 billion.
This growth was driven by higher remittance inflows and robust export earnings, which improved the availability of foreign currency in the country’s banking sector.
Bangladesh saw a 23.8% rise in remittance inflows for the first eight months of the fiscal year, totaling .
49 billion, compared to $14.94 billion during the same period last year.
Additionally, export earnings saw an 11% YoY increase during the same period, contributing further to the nation’s financial health. Despite growth in the import LCs, payments for capital machinery saw a sharp decline of 25%, while imports of industrial raw materials and petroleum increased.
This upward trend in LCs suggests a strengthening of Bangladesh’s economy, despite some sector-specific declines.
