LC margin on imports of Ramadan essentials eased

Bangladesh Bank (BB) has relaxed the LC margin on import of 11 types of products which demand increases during the holy month of Ramadan, reports UNB.

The products are rice, wheat, onion, pulses, edible oil, sugar, eggs, chickpeas, peas, spices and dates. The central bank has instructed to keep the LC margin at a minimum level on the basis of the bank-customer relationship for importing these products.

In this regard, the BB issued a circular on Sunday and sent it to the chief executives of commercial banks for immediate execution.

The circular stated that this directive will come into effect immediately and will remain in force until March 31, 2025.

The financial sector regulator has suggested giving priority to setting up import credit to ensure the supply of these products in the domestic market.

Earlier restrictions on the import of widely used products have been eased slightly on the occasion of the upcoming Ramadan.

From now on, a 100 per cent margin will not be required to open LCs for import of rice, wheat, onion, dal, edible oil, sugar, eggs, chickpeas, peas, spices, and dates.

A margin of 5 to 20 percent is usually charged based on the bank-customer relationship.