Based on bank-customer relations, no LC margin for import of 8 essential products during Ramadan: BB
The Bangladesh Bank has allowed the import of 8 essential food products during Ramadan without any type of LC margin based on the bank-customer relationship.
A notification in this regard was issued by the central bank on Wednesday (17 January).
Letter of Credit (LC) Margin means, the percentage of the total amount an importer needs to deposit, with the rest covered by the bank.
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"Instructions have been given to keep the price of edible oil, chickpeas, pulses, peas, onions, spices, sugar and dates bearable at the consumer level and to ensure adequate supply," the notification read.
Before this, in another circular on 11 January, the Bangladesh Bank also allowed importing these eight products on buyers' credit.
Although at present the cash margin has been increased to 100% to control the import of relatively fewer essential goods including luxury goods, a minimum cash margin of 75% has been asked to open import credit for all goods except essential and luxury goods.
However, the import of essential food products including baby food, fuel, life-saving drugs and equipment recognised by the Department of Health is kept out of this.
In December 2022, the central bank issued a circular announcing the same facility; however, later it was withdrawn.
