The country witnessed a decline in both settlement and opening of Letter of Credits (LC) in July by 9.23 percent and 30.20 percent respectively following the government’s import cost containment policy, official sources said.
LC settlements were worth $658 crore in July, which was $117 crore, or 9.23 percent, less than the amount settled in June, when LCs worth Tk 775 crore were settled, according to the latest data of Bangladesh Bank (BB).
Besides, LCs worth $555 crore were opened in July, down from $796 crore in June, showing a decline of 30.20 percent.
According to BB data, LCs worth $685 crore were settled in January, $655 crore in February, $767 crore in March, $693 crore in April and $725 crore in May.
BB sources said LCs worth $865 crore were opened in January, which was followed by $723 crore in February, $987 crore in March, $861 crore in April, and $744 crore in May.
The settlement of LCs declined by 4.26 percent in February, increased by 12.2 percent in March, increased by 5.66 percent in April, declined again by 5.53 percent in May, increased by 11.88 percent in June, and fell by 9.23 in July.
A BB official said the central bank has been taking various initiatives to control imports since April. The opening of the LCs of 3 million dollars is being monitored as a new step. As a result, LC settlement in July declined, he added.
Sirajul Islam, Executive Director and spokesperson of BB told The News Times that the government and Bangladesh Bank are trying to overcome the current economic crisis. The banks were instructed to inform BB 24 hours in advance while opening LCs worth $3 million dollars or above, he said, adding the BB has been monitoring such initiative to check irregularities.
He said the LC margin for import of luxury items has also been raised to 100%. This has brought about a change in import practices, he added.
