The Bangladesh Petroleum Corporation (BPC) faces a dollar shortage crisis affecting its ability to settle import bills for fuel oil, with overdue debts to foreign suppliers reaching approximately $250 million as of mid-June. Due to the Bangladesh Bank’s halted dollar supply, BPC aims to revive opening Letters of Credit (LCs) through private banks, following difficulties with state-owned banks in meeting its daily $25 million demand. While state banks manage government imports, private banks, including One Bank and HSBC, have refrained from LC openings due to dollar scarcity. Discussions are ongoing to reintroduce LCs through multiple private banks by July, aimed at easing pressure on state banks and ensuring timely supplier payments. Despite ample funds, the BPC’s reduced imports strategy reflects challenges in leveraging favorable international oil prices amid the ongoing dollar crisis and IMF forex reserve conditions.
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