Bangladesh Bank has relaxed conditions for opening Letters of Credit (LCs) for imports to ensure a smooth supply of essential commodities during the upcoming month of Ramadan.
From now on, commercial banks can determine the cash margin rate for opening LCs for designated goods based on their bank-customer relationships.
On Sunday (November 8), the Banking Regulations and Policy Department-1 of Bangladesh Bank issued a circular regarding this matter.
The directive has been sent to the managing directors and chief executive officers of all scheduled banks in the country.
The circular stated that the demand for essential daily items increases during Ramadan.
This initiative aims to facilitate imports, maintain a steady supply of goods in the market, and keep prices at a tolerable level during this period.
According to the guidelines, the cash margin for opening LCs for importing rice, wheat, onions, pulses, soybean and palm oil, sugar, chickpeas, yellow peas, spices, and dates can be settled on the basis of bank-customer relationships.
Additionally, the central bank advised commercial banks to prioritize importers when opening LCs to ensure an adequate supply of these commodities in the domestic market.
Bangladesh Bank noted that this directive was issued in the public interest using powers conferred under Section 45 of the Bank Company Act, 1991.
The order takes effect immediately and will remain in force until March 15, 2027.