The Bangladesh Bank (BB) has asked banks to take a minimum cash advance from importers while opening letters of credit (LCs) for rice and wheat to keep their prices at a tolerable level in the domestic market and ensure smooth supply.
According to a BB circular released on December 14, the advance payment, also known as the cash LC margin, should be preserved at the bare minimal amount dependent on the bank-client relationship. Due to the interruption to the global supply chain caused by the negative effects of the Russia-Ukraine war, food crop prices are trending upward.
As a result, the cost of transporting international goods has increased, which has an impact on the market.
