Bangladesh Bank has allowed 8 essential commodities “usance term” (credit for suppliers/buyers) to meet consumption demands for next Ramadan.
The foreign exchange policy department of Bangladesh Bank on Tuesday issued a circular on 90-day credit facility for suppliers/buyers of these commodities with immediate effect. This facility will remain applicable for the initiation of imports till March 31, 2023.
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Usance credit payable at sight refers to an LC arrangement where the issuing bank grants financing for the importer. The importer makes forward payment, whereas the exporter makes sight collection from the drawee bank that is responsible for discounting.
As a result, traders got the opportunity to import edible oil, chickpeas, pulses, peas, onions, spices, sugar, and dates under 90 days of suppliers'/buyers' credit.
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Earlier on December 11, in order to keep the prices of these products at a tolerable level and ensure adequate supply, the cash margin rate for the establishment of import LCs was instructed to be kept at a minimum level based on the banker-customer relationship.