Bangladesh Bank removes 100pc margin condition for fruit imports

Banks are no longer required to maintain 100 percent cash margin for opening letters of credit (LCs) for fruit imports. Bangladesh Bank has withdrawn the condition and issued new directives, allowing margins to be set based on the bank-client relationship and risk assessment.

The central bank said in a circular on Sunday that the decision was taken to facilitate fruit imports considering the nutritional needs of children, patients, the elderly and pregnant women. This is expected to increase supply, create competition and help keep prices within reach.

Bangladesh Bank said the 100 percent cash margin was imposed in September 2024 on fruits and some luxury goods due to global economic instability and dollar shortages. The restriction has now been relaxed for fruits as the foreign exchange market has stabilised.

However, the existing margin rules for other luxury goods remain unchanged.