Bangladesh Bank Lifts 100% Cash Margin on Fruit Imports

Bangladesh Bank has withdrawn the mandatory 100% cash margin requirement for fruit imports, easing a long-standing restriction on import financing. Under a circular issued on Sunday (August 16), banks can now set the cash margin for opening letters of credit (LCs) based on their relationship with customers, their financial capacity and the bank’s assessment. The central bank had imposed the 100% cash margin requirement in September 2024 as part of measures to manage foreign exchange and reduce pressure on the country’s reserves. However, Bangladesh Bank said foreign exchange conditions and transaction stability have improved, reducing the need for the previous restriction. The central bank also noted that fruits are an important source of nutrition, particularly for children, patients, elderly people and pregnant women. The new policy aims to support regular supplies, promote competition and help keep fruit prices affordable.

The decision is expected to lower the financial burden on importers and increase access to import financing. However, other instructions issued in 2024, as well as those contained in future circulars, will remain unaffected. The directive will come into effect immediately.