Scrap vessel imports drop to a 4 year low in 2022

Despite significant domestic production, imports of medicines, pharmaceutical products, and intermediate goods in Bangladesh have surged due to rising health issues and critical diseases. In the first four months of the current fiscal year, imports increased by 30.1% to $146.7 million.

The rising remittance dollar rate has pushed the exchange rate for import LC settlements to Tk123.80-125, raising concerns about higher import costs and inflation. Banks are buying remittance dollars at Tk124.80-125.60, a sharp increase in recent days due to surging demand.

Bangladesh's imports rebounded for the third consecutive month in October, with overall imports rising 2.04% in the first four months of FY25, compared to a 20.64% decline in the same period last fiscal year.

To stabilize rice prices and boost public food stocks, the Bangladeshi government is ramping up imports, aiming to buy 1 lakh tonnes of rice and wheat each. Current rice stocks are below the recommended levels, and recent floods impacted the Aman crop. Reduced import duties are encouraging private imports, and fresh Aman harvests are expected to ease prices. The government is also in talks with India, Vietnam, and Myanmar for additional rice imports.

In September, Bangladesh's letters of credit (LC) for imports rose to $6.7 billion, up from $5.37 billion in September of the previous year. However, overall LC openings dropped 6.74% year-on-year to $15.59 billion in Q1 FY25 due to business disruptions.