The central bank has directed commercial banks to open import letters of credit (LC) for essential commodities like edible oil, chickpeas, pulses, peas, onions, spices, sugar, and dates during the upcoming holy month of Ramadan at a minimum margin. This will make it easier to import these products.
The Banking Regulations and Policy Department of Bangladesh Bank issued a circular today (December 11) with instructions in this regard. The Financial Sector Regulatory Authority has issued this directive to ensure price control and supply of daily necessities during Ramadan.
To increase supply in the market and keep prices reasonable ahead of Eid, the circular recommends reducing the cash margin rate to a minimum level based on the bank-customer relationship when the loan is opened. This would make the opening of the letter of credit easier and the cost reduced. Market prices remain stable and there is a sufficient supply of these commodities used in the market. Apart from this, the conditions and instructions mentioned in the previously issued circular for importing other products will remain in force.
It also said that this instruction of Bangladesh Bank will be effective immediately and shall remain in effect until further instructions.
