Bangladesh Bank has relaxed import requirements for 11 essential commodities, including dates, chickpeas, rice, edible oil and sugar, to help keep prices affordable during the upcoming holy month of Ramadan.
Under the new measure, importers will no longer be required to maintain a 100 percent cash margin when opening letters of credit (LCs) for these products. The central bank has instructed banks to keep the margin at the minimum possible level based on the relationship between banks and their customers.
Bangladesh Bank issued a circular on Sunday, November 8, outlining the new arrangement. The directive was sent to the chief executives of all scheduled banks across the country.
According to the circular, existing instructions require importers to maintain a 100 percent cash margin when opening LCs for certain consumer goods. However, considering the expected rise in demand during the upcoming Ramadan, the central bank has decided to relax the requirement for imports of 11 essential products.
Bangladesh Bank said the relaxation would make imports of these commodities easier and help ensure an adequate supply in the domestic market. Increased availability, in turn, is expected to help keep prices at a tolerable level during Ramadan.
List of 11 Commodities Covered by the Relaxation According to the central bank's circular, importers will not need to maintain a 100 percent cash margin when opening LCs for the following products: 1. Rice 2. Wheat (flour) 3. Onions 4. Pulses 5. Soybean and palm oil 6. Sugar 7. Chickpeas 8. Peas 9. Spices 10. Dates The circular covers 11 commodities, with soybean oil and palm oil counted separately.
The move is aimed at facilitating imports of essential food items ahead of Ramadan, when demand for these commodities typically increases.
