The Bangladesh Bank has directed all banks to keep the letter of credit (LC) margin at a minimum level on the import of essential goods ahead of the month of Ramadan, based on their relationship with clients.

The central bank issued a circular in this regard on Sunday. The directive came into effect immediately and will remain in force till 31 March 2025.

Banks have been asked to maintain the cash-margin rate for the import of rice, wheat, onion, pulse, edible oil, sugar, eggs, chickpeas, peas, spices, and dates based on their relationship with clients, in an effort to control commodity prices and ensure adequate supply during Ramadan.

Earlier, the central bank had decided to lift the LC margin on the import of such essential goods until Ramadan.

"We will issue a circular on Sunday (10 November) not to impose LC margin on essential goods," Bangladesh Bank Governor Dr Ahsan H Mansur had said.

On 11 November, the Bangladesh Bank allowed delayed payment of bills for importing 11 essential food items ahead of Ramadan.

The products are – rice, wheat, onion, pulses, edible oil, sugar, eggs, chickpeas, peas, spices and dates.