The Bangladesh Bank has directed banks to keep the cash margin requirement at the minimum possible level for opening Letters of Credit (LCs) to import ten essential food items ahead of the holy month of Ramadan.

The ten commodities covered under this special facility are rice, wheat, onion, pulses, edible oil, sugar, chickpea (chhola), motor (peas), spices, and dates.

The directive, issued by the Banking Regulation and Policy Department of the Bangladesh Bank on Wednesday and sent to the Managing Directors and Chief Executive Officers of all scheduled banks for execution. The new instruction is effective immediately and will remain in force until March 31, 2026.

The central bank stated that the initiative was taken to ensure adequate supply and keep prices stable in the market, as the demand for these goods typically increases significantly during Ramadan.

The directive explicitly states that the necessary cash margin for importing these ten essential items must be maintained at the minimum possible level, based on the banker-customer relationship.

Previously, the central bank had imposed a requirement for banks to maintain up to 100 percent cash margin for opening LCs for certain consumer goods during the Ramadan season. This was later relaxed to a minimum requirement, based on the banker-customer relationship, a facility that expired on March 31 of the previous year.

The Bangladesh Bank further instructed banks to prioritize the establishment of LCs for these commodities to ensure their sufficient supply in the domestic market.