Bangladesh Bank eases LC conditions for Ramadan essentials

Bangladesh Bank (BB) has directed banks to keep cash margin requirements at the minimum level, based on banker-customer relationships, when opening letters of credit (LCs) for importing 10 essential commodities, including edible oil, sugar, chickpeas, onions and dates, ahead of Ramadan.

The directive was issued in a circular sent to the chief executives of all banks on Sunday.

It covers imports of rice, wheat, onions, lentils, edible oil, sugar, chickpeas, peas, spices and dates. 

The central bank said the initiative was aimed at facilitating imports of essential consumer goods and keeping market prices within an affordable range. If price increases can be prevented, consumers will be able to buy these commodities at relatively reasonable prices.

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.

The move follows earlier directives on import financing. A circular issued on Sept 5, 2024 required 100 percent cash margins for letters of credit covering certain imports.

Another, issued on Nov 11, 2025, asked banks to keep margins for selected consumer goods at a minimum, based on their relationship with clients, to meet Ramadan demand.

That instruction remained in force until Mar 31 this year.