The value of fresh letters of credit (L/Cs) opened against imports into Bangladesh increased by 23.35 per cent during the first quarter of the current fiscal year (July through August) compared with the same period last year.

Officials say demand for imported goods during the Muslim holy month of Ramadan was one reason for the L/C surge.

Domestic demand

The value of import L/Cs opened for some essential items for domestic demand, including rice, wheat, milk food, edible oils, pulses and onion rose substantially in the three months to August.

Officials say there was also a substantial increase in the volume of L/Cs settled in the first quarter of this fiscal year compared with the same period last year.

Figures

Import L/Cs worth US$ 5.2 billion were opened during the first quarter of the current fiscal 2007-08 year as against $4.2 billion in the corresponding period last year, according to statistics released by the Bangladesh Bank (BB), the country's central bank.

A senior central banker said he expected the volume and value of L/Cs would ease somewhat now that Ramadan and the subsequent festival of Eid celebrations are finished.

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