BB eases fruit import rules as forex market stabilizes

Bangladesh Bank (BB) has withdrawn the mandatory 100 per cent cash margin on imports of fruits, a move expected to make imported fruits cheaper and ease pressure on importers as the country’s foreign exchange (forex) market and reserves have become more stable.

Under the new decision issued on Sunday, banks will now set the cash margin for fruit imports based on their relationship with individual customers. This means importers may no longer have to pay the full value of fruit imports upfront, as banks can decide how much financing they can provide to eligible customers.

The central bank had imposed the 100 per cent cash margin requirement in September 2024 as part of measures to conserve foreign currency and discourage imports of non-essential goods.

The rule meant fruit importers could not use bank financing for such imports. They had to arrange the full amount in cash before opening letters of credit (LCs).

Importers said the requirement increased their costs, which was eventually reflected in higher prices of imported fruits in the local market.

Explaining the latest decision, the BB said the country’s foreign exchange market and external transactions have been showing increasing stability.

As a result, the need for a 100 per cent cash margin for opening LCs to import fruits has declined.

The central bank also highlighted the importance of fruits in people’s daily diets, particularly for children, patients, elderly people and pregnant women.

It instructed banks to determine the cash margin based on the banker-customer relationship so that fruit imports can be made easier and prices can remain within an affordable range.