Bangladesh’s Import Trade Shows Signs of Recovery as LC Openings Jump
Bangladesh’s import sector is showing signs of renewed activity, with Letters of Credit (LCs) opened for imports rising nearly 18% during the first two months of the 2026–27 fiscal year, according to Bangladesh Bank data.
Between July and August, businesses opened LCs worth $13.94 billion, up from $11.82 billion during the same period last fiscal year. The increase amounted to approximately $2.11 billion, representing year-on-year growth of 17.92%.
LC settlements also recorded significant growth. Payments against import LCs reached $12.466 billion during the period, compared with $11.257 billion a year earlier, marking an increase of 10.74%.
Consumer goods recorded the strongest growth in LC openings. Businesses opened LCs worth $1.259 billion for these imports, up 25.50% from $1.003 billion in the corresponding period last year. Settlements in this category also increased by 10.10%.
Meanwhile, LC openings for capital machinery, which is closely linked to industrial investment and production, rose 12.87% to $357 million from $317 million.
However, the picture for industrial raw materials remained largely stagnant. LC openings in this category increased only 0.21% to $4.216 billion, while settlements fell by approximately 2.19% to $3.802 billion.
Capital machinery settlements also declined by 5.52%, dropping to $291 million from $308 million a year earlier.
Analysts attribute the broader increase in import activity partly to improved foreign exchange availability, supported by higher remittance inflows and some easing of pressure on the US dollar. Previous import restrictions had been introduced to protect the country’s foreign exchange reserves.
Although rising LC openings and settlements suggest improving business activity, the contrasting trends across import categories indicate that the recovery remains uneven, particularly in industrial raw materials and capital machinery payments.
Reporting by Borderless for The Borderless Journal. Filed under Uncategorized · 18 Oct 2026, 20:30.
