Bangladesh’s import Letter of Credit (LC) openings dropped to a five-year low in June 2025, reaching just $4.14 billion, the lowest since August 2020 — as private investment and consumption declined sharply.
According to Bangladesh Bank data, this figure is 24.42% lower than June 2024. LC settlements also saw a steep fall, hitting the lowest level since November 2020.
Economists and bankers see this as a troubling sign, pointing to reduced demand, low private investment, and weak implementation of public projects. Capital machinery and raw material imports — key indicators of investment — fell by over 25% year-on-year.
Despite a slight 0.18% annual rise in total imports, driven mainly by a few sectors, the broader trend reflects declining economic momentum. The fall in imports also led to dollar depreciation, prompting central bank intervention.
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