BB relaxes cash margin requirement for fruit imports

Bangladesh Bank (BB) has relaxed the cash margin requirement for opening letters of credit (LCs) for fruit imports, replacing the existing 100 percent cash margin requirement with a margin to be determined by banks based on their relationship with customers.

The central bank issued the instruction in a circular on Sunday, saying the move was aimed at facilitating fruit imports, ensuring adequate supply at affordable prices and creating a competitive market, while also considering public health and nutritional needs.

According to the circular, the 100 percent cash margin requirement for opening import LCs for certain luxury goods and import-substitute products was introduced against the backdrop of global economic instability to strengthen the country’s currency and credit management.

Fruit was included among those products subject to the mandatory 100 percent cash margin.