BRPD Circular Letter No. 48: Opening L/C and L/C Margin for Importing Fertilizer

Bangladesh Bank Head Office Motijheel, Dhaka-1000 Bangladesh. Ref No.: BRPD Banking Regulation and Policy Department 13 November 2024

BRPD Circular Letter No. 48 Date: ------------------ 28 Kartik 1431

Managing Director / Chief Executive Officer All Scheduled Banks Operating in Bangladesh

Dear Sir,

Reference is drawn to your attention BRPD Circular Letter No. 41 dated 05 September 2024 regarding the establishment of Letters of Credit and maintenance of cash margin in the context of import.

2. In accordance with the instructions of the aforementioned BRPD Circular Letter No. 41/2024, banks have the opportunity to maintain cash margin based on bank-customer relationships for the establishment of Letters of Credit for the import of all products except those mentioned in the said circular.

3. Now, considering the importance of fertilizer in agricultural production, instructions are given to maintain the cash margin rate for the establishment of Letters of Credit for fertilizer import at a minimum level based on bank-customer relationships, while keeping the price of fertilizer affordable and ensuring necessary supply.

4. Furthermore, advice is given to give highest priority to the establishment of Letters of Credit for fertilizer import.

5. These instructions are issued under the powers granted under Section 45 of the Bank Company Act, 1991.

6. These instructions will take immediate effect and remain valid until 31 December 2025.

Yours faithfully,

(Mohammad Shahriar Siddique) Director (BRPD) Phone: 9530252