BB lowers cash margin on import of 10 essentials ahead of Ramadan
The instruction takes immediate effect and will remain valid until 31 March 2026.
To ensure adequate supply of essential commodities during the next holy month of Ramadan (expected to begin mid-February 2026), the Bangladesh Bank has instructed all scheduled banks to keep the cash margin at a minimum while opening letters of credit (LCs) for the import of 10 key consumer goods.
The central bank's Banking Regulations and Policy Department issued the directive today (11 November) and sent it to the managing directors and chief executives of all scheduled banks.
According to the circular, banks have been asked to maintain the required cash margin at the lowest possible level for the import of rice, wheat, onion, lentils, edible oil, sugar, chickpeas, peas, spices, and dates based on banker-client relationships.
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The instruction takes immediate effect and will remain valid until 31 March 2026.
The central bank said the demand for these items rises significantly during Ramadan and the move aims to facilitate imports, ensure sufficient market supply, and keep prices within an affordable range.
Previously, importers were required to maintain a 100% cash margin for some essential goods during the Ramadan season. However, considering import conditions and market demand, the central bank later allowed flexibility based on banker-client relationships — a facility that was in effect until 31 March this year.
The new directive also instructs banks to prioritise the opening of LCs for these items to ensure smooth domestic supply.
