HOW US DOLLARS WILL IMPACT OPENING LETTER OF CREDIT IN BANGLADESH

The ongoing dollar shortage in the banking sector is posing a threat to local textile millers and spinners as they are in trouble in opening letters of credit (LCs) to import raw materials and cotton to feed the country’s readymade garment industry. Some reasons:

– International retailers and brands have placed 25 per cent fewer orders

– Owing to the crunch of the American greenback

– Import bills against lower export and remittance receipts

– Above leads to the period for LC opening take more time and the raw material shortage

If the LC opening situation persists, the sector in Bangladesh will face the crisis of raw materials

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