Despite a severe dollar crisis in the country’s banking sector, the issuance of letters of credit (LC) for imports experienced a significant surge in October, reaching US $ 5.42 billion. However, this trend began to reverse at the outset of the current financial year, 2023-24. In FY ’24, the LC openings were US $ 5.23 billion in September, US $ 6.1 billion in August, and US $ 4.37 billion in July. Apart from heightened Government imports, LC openings for the import of capital machinery also experienced growth during the reporting period, reports claimed. This includes US $ 4.25 billion allocated to banks during July-October of the current financial year, US $ 13.5 billion in FY ’23, and US $ 7.62 billion in FY ’22.

Source: Economic Times November 10, 2023 11:49 UTC