The Bangladesh Bank has relaxed the cash margin on the import of goods related to industries, health, construction, transport, ICT, and raw materials, leaving it to the banks to issue letters of credit for these products based on their relations with clients.
The central bank announced the measure on Tuesday as part of efforts to bolster economic activities and improve the supply chain.
The Bangladesh Bank published a list of sectors in which the facility would be applicable. Bangladesh raised the cash margin for the import of non-essential goods from 50 percent to 75 percent in a bid to save up dollars. The cash margin for the import of luxurious products was also raised to 100 percent.
However, baby foods and other essential food items, fuel, medicines, and equipment were left out of the measure to ensure their supply.
Banks then began to apply the 75 percent cash margin for security equipment, computer parts, transport, and construction materials as they were not included in the list.
The central bank said the cash margin rate for import credit can be based on a bank’s relationship with the importer.
The list of products with relaxed cash margins is as follows:
- Parts of industrial machinery
- Textile raw materials, chemicals, and associated goods
- Plastic and packaging items and related raw materials
- Medical equipment, accessories, and reagents
- UPS/IPS parts and accessories
- Security-related goods
- Construction-related materials, steel sheets, H-beam, etc., that complement locally manufactured goods
- Computers/laptops and their parts
- Hardware related to information and communication technologies, the internet, and cyber security
- Vehicle parts, tyres, and tubes
