Bangladesh: Bangladesh Bank (BB) has removed the mandatory 100 percent cash margin requirement for opening letters of credit (LCs) to import fruits, allowing scheduled banks to set the rate based on their banker-customer relationship.

According to United News of Bangladesh, the Banking Regulation and Policy Department (BRPD) of the central bank issued a circular instructing the managing directors and chief executives of all scheduled banks to implement the decision immediately. Previously, under BRPD Circular Letter No. 41 issued on September 5, 2024, Bangladesh Bank imposed a mandatory 100 percent cash margin on luxury items and locally produced import-substitute goods, which included fruits, to manage foreign exchange reserves amid global economic volatility.

The latest circular from BB explains that foreign exchange rates and transactions in Bangladesh have gradually stabilized, reducing the necessity of a rigid 100 percent cash margin requirement. Furthermore, fruits are considered essential nutritious food items for the general public, particularly children, the elderly, sick individuals, and pregnant women.

By easing import restrictions, the central bank aims to facilitate smoother imports, maintain affordable price levels, foster competitive market dynamics, and ensure a steady supply of fruits across the country. The circular highlights that all other instructions outlined in BRPD Circular Letter No. 41/2024 and related directives remain unchanged.