B Mirror Report : Bangladesh’s import activity showed a mild rebound in the first five months of the current fiscal year (FY26), driven by stability in the foreign exchange market and seasonal demand ahead of Ramadan. However, the recovery remains uncertain as importers remain cautious amid political uncertainty ahead of the national election.

Data from Bangladesh Bank shows that Letters of Credit (LC) openings rose by 4.5 percent to $29.69 billion during July–November of FY26, compared to $28.4 billion in the same period of the previous fiscal year.

Despite the rise in LC openings, settlements have not kept pace, reflecting the impact of high interest rates and uncertainty in the business environment. The data indicates a growing gap between import commitments and actual payments.

LC openings for capital machinery increased sharply by 32.22 percent to $911 million, signaling renewed investment in energy-efficient and productivity-enhancing equipment. In contrast, settlements in this category declined by 16.77 percent to $745.5 million.

In preparation for Ramadan, LC openings for consumer goods rose 10.64 percent to $2.85 billion, while settlements slipped slightly to $2.41 billion.

Meanwhile, LC openings for industrial raw materials edged up by 0.42 percent to $10.29 billion, suggesting cautious manufacturing activity amid weak domestic demand and constrained working capital.

Although the interbank exchange rate has remained stable at around Tk 122 per US dollar for the past nine months, elevated interest rates have continued to raise import costs and increase debt repayment pressures.

Overall, LC settlements declined marginally by 0.63 percent to $27.94 billion during the July–November period, underscoring the fragile nature of the import recovery.