Bangladesh Bank Directs to Minimise Cash Margins for Essential Imports Ahead of Ramadan
Bangladesh Bank has instructed banks to keep cash margin requirements at the minimum level when opening letters of credit (LCs) for essential commodities ahead of the upcoming holy month of Ramadan. The move aims to ensure adequate supplies and keep prices of essential goods affordable.
The facility will apply to imports of rice, wheat, onions, lentils, edible oil, sugar, chickpeas, peas, spices and dates, based on banker-customer relationships. The central bank has also advised banks to give priority to opening LCs for these commodities to ensure adequate supplies in the domestic market.
The Banking Regulation and Policy Department-1 of Bangladesh Bank issued a circular in this regard on Sunday (November 8), instructing the managing directors and chief executive officers of all scheduled banks operating in the country to take necessary measures.
According to the circular, a previous BRPD circular issued on September 5, 2024, required banks to maintain a 100 per cent cash margin for importing certain products. Later, through another circular issued on November 11, 2025, Bangladesh Bank instructed banks to keep cash margin rates at the minimum level, based on banker-customer relationships, for importing selected essential commodities in view of Ramadan demand. That directive remained effective until March 31, 2026.
Under the latest instruction, the central bank has again taken steps to facilitate imports in anticipation of increased demand during the upcoming Ramadan. Banks have been directed to maintain minimum cash margins when opening LCs for rice, wheat (flour), onions, lentils, edible oils (soybean and palm oil), sugar, chickpeas, peas, spices and dates.
Bangladesh Bank believes that easing imports of these commodities will help maintain stable market supplies and keep prices affordable for consumers. It has therefore advised banks to prioritise opening LCs for the listed products to ensure adequate supplies in the domestic market. The central bank said the directive was issued under Section 45 of the Bank Company Act, 1991. It will take effect immediately and remain in force until March 15, 2027.
