Foreign banks have been reducing loan limits for Bangladeshi banks for the past two years due to a dollar crisis, complicating the opening of Letters of Credit (LCs). Despite an improved dollar flow, poor country ratings and the need for international guarantees hinder LCs, especially from banks in the Middle East influenced by negative media reports. Recent data shows decreased import expenditures but increased exports and remittances, resulting in a current account surplus. However, the overall decline in LCs opened indicates ongoing challenges in the banking sector, emphasizing the need for greater stability.
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