Bangladesh Bank took the initiative to discourage pouring in of imports due to abnormal increases in import costs. Banks have been instructed to maintain a minimum cash margin rate of at least 25% for the issuance of bonds against imports of all other commodities except for a few important sectors related to daily necessities and healthcare. Bangladesh Bank issued a circular in this regard on Monday (11 April).
The directive, which was sent to the chief executives of all commercial banks in the country, said that so far the margin rate could be determined on the basis of banker-client relationship in all types of import bonds. But in the context of the prevailing global trade, new decisions have to be taken in order to manage the overall activities of cash and debt management.
The new guidelines state that it is required to maintain a cash margin rate of at least 25% in case of issuing bonds against imports of all other commodities except baby food, fuel, essential food items, life-saving medicines, and local and export-oriented industries and agriculture-related imports.
