Letters of credit opening by value declines in Bangladesh

Opening of letters of credit (LCs) in terms of value has declined in the last two months amid the transport blockade and several rounds of shutdown enforced by the BNP-led alliance.

LCs worth $3.5 billion were opened in December last year for imports but the figure declined to $3.20 billion in January and $3.05 billion in February.

The January figure represents an 8.54 percent decrease from December’s and 7.25 percent from previous January’s amount.

The February figure is 5 percent lower than January’s and 9.41 percent below previous January’s.

Economist Zaid Bakth held the violent political activities and drop in oil prices in the international market responsible for the drop in LC opening.

The 20-Party alliance has enforced the ceaseless transport blockade since Jan 5 and several rounds of general strikes since then to press for a snap election.

Bakth told bdnews24.com: “Imports were increasing as stability prevailed in the country in entire 2014. But lack of confidence was evident among the businessmen and industrialists following the beginning of shutdowns, blockade and violence from the start of the current year.”

“It has impacted investment. That’s why LC opening has declined,” he added.