BB relaxes cash margin requirement for import ahead of Ramadan

Staff Reporter:

To ensure adequate supplies of key consumer goods during the upcoming holy month of Ramadan (likely to begin in mid-February 2026), Bangladesh Bank has instructed all scheduled banks to maintain the minimum possible cash margin when opening letters of credit (LCs) for the import of 10 essential commodities.

The central bank’s Banking Regulations and Policy Department issued the directive on Tuesday and circulated it to the managing directors and chief executives of all scheduled banks.

As per the circular, banks have been advised to keep the required cash margin at the lowest feasible level for importing rice, wheat, onion, lentils, edible oil, sugar, chickpeas, peas, spices, and dates – based on the banker-client relationship.

The instruction takes effect immediately and will remain valid until 31 March 2026.

According to Bangladesh Bank, demand for these commodities typically rises sharply during Ramadan. The directive aims to facilitate timely imports, ensure sufficient market availability, and help keep prices affordable.

In previous years, importers were required to maintain a 100% cash margin for certain esRamadan season. However, considering current import conditions and market needs, the central bank later introduced flexibility based on banker-client relationships – a facility that remained in place until 31 March this year.

The latest directive also urges banks to prioritise the opening of LCs for these commodities to ensure smooth and uninterrupted domestic supply.sential items during the
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