BB eases cash margin requirement forfruit imports

The Bangladesh Bank has eased the cash margin requirement for opening letters of credit (LCs) to import fruits, allowing banks to determine the margin based on the banker-customer relationship instead of maintaining a mandatory 100% cash margin.
The central bank issued the instruction considering the importance of fruits as an essential nutritious food item, particularly in the daily diets of children, patients, elderly people and pregnant women.
Earlier, amid global economic instability, Bangladesh Bank had instructed banks to maintain a 100% cash margin when opening LCs for certain luxury goods and import-substitute products produced domestically. Fruits were included in the list.
However, the central bank said the country’s foreign exchange market and transactions have recently shown gradual improvement towards the desired level of stability, reducing the need for a 100% margin requirement for fruit imports.
Against this backdrop, the central bank said the relaxation was introduced to facilitate imports, keep fruit prices at affordable levels and ensure adequate supply by creating a competitive market, while also considering public health and nutritional needs.
Under the new instruction, banks will determine the cash margin for opening LCs for fruit imports based on the banker-customer relationship, replacing the previous mandatory 100% cash margin requirement.
The move is expected to facilitate fruit imports and improve supply in the domestic market, particularly by easing the upfront financing burden on importers.