Bangladesh’s central bank told banks to minimise cash security requirements for essential food import letters of credit and prioritise those applications ahead of Ramadan. Margins will depend on the relationship between each bank and its customer. The instruction took immediate effect and lasts until 15 March 2027, with the stated aim of maintaining supplies and keeping prices affordable.
Bangladesh Bank, the country’s central bank, has instructed banks to keep cash security requirements for essential food import letters of credit at the lowest possible level. Such letters provide bank-backed payment arrangements for imports. Banks must also prioritise opening them for the covered staples ahead of Ramadan. The instruction took immediate effect on 8 November and will remain valid until 15 March 2027.[1], [2]
Each bank is to determine the margin in light of its relationship with the customer. The covered foods include rice, wheat and flour, onions, pulses, edible oils, sugar, chickpeas, peas, spices and dates. Soybean and palm oil fall within the edible-oil category. The central bank cited rising Ramadan demand and said its aims were easier importing, sufficient domestic supply and prices consumers could afford.[1]
The directive was issued under section 45 of the Bank Company Act, 1991. A notice of 5 September 2024 had required a 100 per cent cash margin on imports of several goods. On 11 November 2025 the central bank allowed minimum margins based on bank-customer relationships for selected staples until 31 March. The latest measure restores similar financing relief for the coming fasting month.[1]
