LCs at zero margins can be opened to curb the rise in commodity prices before Ramadan. The LC commission should also be kept to a minimum. LCs should be opened at zero margins for the import of edible oil, chickpeas, pulses, peas, onions, spices, dates, fruits, sugar, and other daily necessities. Bangladesh Bank sent instructions related to this to the chief executives of all banks on Thursday (10 March).
Usually, the bill has to be paid after the goods arrive in the country. However, the customer has to deposit a portion of the value of the goods in the bank at the time of opening the import bond. This is called the LC margin. This margin is determined on the basis of the banker-customer relationship. If the customer’s business relationship with the bank is good, the LC is opened with a minimum margin of 10. Again, if the customer is considered uncertain, then the LC is opened with a 100% margin.
According to the circular, the holy month of Ramadan and Eid-ul-Fitr are approaching. On the other hand, the prices of essential commodities dependent on imports are rising in the market for various uncontrollable reasons, including the post-pandemic situation of COVID-19. In this situation, in order to prevent the rise in the prices of essential commodities during the coming Ramadan, to keep the prices of commodities at an acceptable level, and to ensure adequate supply, the instruction to open import bonds of edible oil, chickpeas, pulses, peas, onions, spices, dates, fruits and other essential commodities including sugar has been given.
It further said that the margin rate of import bonds should be kept to a minimum and bonds can be opened at zero margins on the basis of the banker-customer relationship. The commission on import bonds needs to be kept at the lowest possible level on the basis of the banker-customer relationship. This instruction will be effective immediately and will remain in force till 10 May.
