Bangladesh Bank lowers LC margin requirements for Ramadan essentials imports

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Bangladesh eases LC margins for Ramadan

Highlights

Bangladesh Bank instructs scheduled banks to set the lowest possible LC cash margin for imports of essential Ramadan goods such as rice, wheat, sugar, and oil, effective immediately.
The policy, issued 8 November and valid until 15 March 2027, prioritizes LC processing for these commodities to ensure market supply and price stability during Ramadan.
This measure reintroduces relaxed LC margin requirements previously applied until 31 March 2026, aimed at reducing upfront importer financing pressure and supporting food affordability.

Import financing rules eased for essential goods

As reported by The Business Standard, citing Bangladesh Bank, scheduled banks are instructed to keep cash margins for opening letters of credit, or LCs, at the lowest possible level for imports of rice, wheat, onions, pulses, soybean and palm oil, sugar, chickpeas, peas, spices and dates.

The central bank says banks must set those margins at the minimum level based on the banker-customer relationship. It also advises lenders to give the highest priority to processing LCs for these items, as demand is expected to rise during the upcoming Ramadan.

The circular is issued on 8 November and sent to the managing directors and chief executive officers of all scheduled banks. Bangladesh Bank says easier import processing is intended to help ensure adequate supplies in the domestic market and keep prices within the purchasing capacity of ordinary consumers during the fasting month.

Policy revives earlier Ramadan support measures

The directive takes immediate effect and remains valid until 15 March 2027. The latest move effectively reintroduces a facility that the central bank has used before to ease imports of essential goods ahead of Ramadan.

Bangladesh Bank had instructed banks on 5 September 2024 to maintain a 100% cash margin for opening LCs on imports of several commodities. It later directed banks on 11 November 2025 to keep cash margins for those goods at the lowest possible level based on the banker-customer relationship, with that facility staying in effect until 31 March 2026.

The renewed relaxation points to continued official concern over food availability and affordability during peak seasonal demand. For banks and importers, the change is likely to reduce upfront financing pressure and support faster procurement of staple consumer goods.

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