Foreign banks reluctant to issue LCs for some banks in the country

Foreign banks reluctant to issue LCs for some banks in the country

Many foreign banks are now hesitant to accept letters of credit (LC) from Bangladeshi banks, despite a recent improvement in dollar liquidity within the country. While the increased dollar supply has eased pressures related to import liabilities and foreign debt repayments, local banks remain cautious about engaging in foreign trade. Foreign institutions have cut credit limits, making it...

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