BB asks banks to keep LC margins low for Ramadan essentials

The Bangladesh Bank (BB) has asked all scheduled banks to keep cash margins at the lowest possible level for opening Letters of Credit (LCs) to import 10 essential commodities ahead of the upcoming Ramadan.

The move aims to ensure enough supplies in the market and keep prices affordable for ordinary people during the fasting month.

In this regard the BB issued a directive on Sunday asking banks to give importers priority when processing LCs for these products.

The 10 essential commodities are rice, wheat, onions, pulses, soybean and palm oil, sugar, chickpeas, peas, spices and dates.

According to the circular, demand for these items usually rises during Ramadan. Easier import procedures are expected to help maintain supply and prevent prices from becoming too high.

The directive takes immediate effect and will remain in force until 15 March 2027.

The Bangladesh Bank had introduced a similar facility before, allowing banks to keep LC margins at the lowest possible level. The latest move brings back that support ahead of Ramadan.