BB eases LC cash margin for Ramadan essentials as Bangladesh Bank has instructed commercial banks to maintain the minimum cash margin when opening import letters of credit (LCs) for several essential food items. The decision aims to facilitate imports and ensure sufficient supplies ahead of the holy month of Ramadan.

According to a circular issued by Bangladesh Bank, banks should determine the minimum cash margin based on their relationship with individual customers. The directive covers essential commodities, including rice, wheat and flour, onion, lentils, soybean and palm oil, sugar, chickpeas, peas, spices and dates.

A cash margin is the amount an importer must deposit upfront with a bank when opening an LC. By keeping this margin at the minimum level, importers will need less money upfront to arrange imports. The move is expected to make the import process easier for businesses dealing with essential food products.

Bangladesh Bank said the decision was taken in view of the expected increase in demand for essential commodities during Ramadan. The central bank also advised commercial banks to give priority to opening LCs for these products to help maintain adequate supplies in the domestic market and keep prices at tolerable levels.

The new directive has come into effect immediately and will remain valid until March 15 next year. Banks have been instructed to follow the revised guidance when processing import LCs for the listed commodities.

The latest decision follows earlier central bank measures on import financing. In September 2024, Bangladesh Bank introduced a 100 percent cash margin requirement for certain imported goods. Later, in November 2025, it directed banks to maintain minimum cash margins for selected essential food imports ahead of Ramadan. That previous instruction remained effective until March 31 this year.