LC openings fall 4.85% in Dec as Ramadan imports taper off
The decline came despite Ramadan approaching, as most LCs for Ramadan-related consumer goods had already been opened months earlier
The opening and settlement of letters of credit (LCs) both declined in December last year compared with the same month a year earlier, reflecting lower import demand and subdued business activity.
In December 2025, LCs worth $6.10 billion were opened, down from $6.41 billion in December 2024 – a fall of 4.85%. LC settlements also dropped, reaching $5.81 billion in December last year compared with $6.19 billion in the same month of 2024, marking a decline of 6.14%.
A senior official at the Bangladesh Bank confirmed the figures to The Business Standard today (8 January).
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According to several top officials of banks, the decline came despite Ramadan approaching, as most LCs for Ramadan-related consumer goods had already been opened months earlier.
They told TBS that imports of key Ramadan essentials – such as chickpeas, soybean oil and dates – were largely completed in advance, mainly during September and October 2025.
Syed Mahbubur Rahman, managing director of Mutual Trust Bank (MTB), said, "Most of the Ramadan consumer goods were imported earlier. Even chickpeas have been imported in quantities higher than required. There is not much pressure now."
"A leading importer also informed us that all the necessary goods had already been brought in," he added.
Mohammad Ali, managing director and CEO of Pubali Bank, cited similar reasons for the decline, adding that the broader economic slowdown was also weighing on import activity.
He said, "Given the current state of the economy, business activity is low. Apart from that, as Ramadan consumer goods were imported earlier, there is no longer the same pressure to open LCs for these items."
He explained that once ships carrying Ramadan essentials arrive, the goods usually reach the market within 30 to 45 days. "That is why most LCs were opened in September and October. As a result, supply of these goods in the market is now quite adequate," he added.
Investment sentiment remains cautious
Sohail R K Hussain, managing director of Bank Asia, said new project expansion was currently very slow.
"However, if the election is held soon and the overall situation improves, businessmen will start new ventures," he said, adding that foreign investors were in talks with local businesses and were planning to invest once the business environment stabilises.
He also expressed optimism about recent policy moves, saying, "I hope that the new loan policy adopted by Bangladesh Bank will be beneficial for the banking sector," he said.
Private credit growth below 7%
Bangladesh Bank data shows that private sector credit growth stood at 6.58% at the end of November, remaining below 7% for six consecutive months. This indicates that businesses are borrowing less for trade and investment.
According to bankers, major conglomerates – including Meghna Group, City Group, Square Group, Edible Oil Limited, Bashundhara Group and TK Group – have already imported most of the goods required for Ramadan.
Data also shows that imports of six essential items that are widely consumed during Ramadan rose sharply in September and October compared with the same period last year. Soybean oil imports increased by 36%, sugar by 11%, lentils by 87%, chickpeas by 27%, split peas by 294% and dates by 231%.
