The opening of letters of credit (LCs) for imports picked up modestly in July鈥揂ugust of the current fiscal year, hinting at a gradual recovery in trade after months of political turmoil and economic disruption.
Bangladesh Bank data shows LC openings rose by 8.28 per cent to $11.47 billion in the first two months of FY26, compared with $10.67 billion during the same period of the past year.
Economists said that while the business environment has improved somewhat, the recovery is fragile.
Stability in the dollar market has encouraged businesses to resume procurement, but lingering uncertainty continues to hold back stronger growth.
Import activity had collapsed in mid-2024 amid a student-led movement that forced the ouster of the Sheikh Hasina government in August.
The unrest disrupted both domestic trade and international transactions, with many importers suspending procurement plans due to dollar shortages and liquidity concerns.
This year鈥檚 modest rebound partly reflects the normalisation of trade flows compared with that period of paralysis.
Yet the sectoral breakdown suggests that businesses remain wary of long-term commitments.
LC openings for capital machinery in July鈥揂ugust grew by just 0.72 per cent to $264 million, reflecting weak appetite for industrial expansion.
Openings for industrial raw materials rose 3.72 per cent to $4 billion, showing that factories are only cautiously increasing production.
By contrast, LC openings under the 鈥榦thers鈥� category鈥攚hich covers a wide range of commercial and government imports鈥攋umped 19.78 per cent to $3.6 billion, helping lift the overall figure despite slow growth in other areas.
LC settlements, which indicate actual import payments, increased 4.23 per cent to $11.12 billion.
The rise marks a shift from the import suppression measures imposed in 2023, when the government tightened controls to protect dwindling reserves.
Bangladesh鈥檚 foreign exchange reserves, which once peaked at $46 billion in December 2021, had fallen to $26.4 billion by September 25, 2025 under IMF calculation standards.
Loan disbursements from the IMF and World Bank have provided temporary relief, but the reserves remain below comfort levels for an import-dependent economy.
The interbank rate climbed to Tk 122 per US dollar in August 2025, up from Tk 106 a year earlier, raising the cost of dollar-denominated debt servicing and pushing up import costs. However, the dollar rate remain around Tk 122 for the last six months.
