BRPD Circular Letter No. 49: L/C Margin on Import Financing

Bangladesh Bank Chief Executive Office Motijheel, Dhaka-1000 Bangladesh. Ref No.: BRPD Banking Regulation and Policy Department December 11, 2022 BRPD Circular Letter No. 49 Date: ------------------ 26 Agrahayan 1429 Managing Director / Chief Executive Officer All Scheduled Banks operating in Bangladesh. Dear Sir, Regarding the maintenance of cash margin in the establishment of import letters of credit.

1. You are requested to refer to BRPD Circular Letter No. 25 dated July 4, 2022, on the subject matter above.

2. In order to ensure adequate supply of the aforementioned commodities (edible oil, chickpeas, lentils, peas, onions, spices, sugar, and dates) at affordable prices during the upcoming holy month of Ramadan, instructions are given to maintain a cash margin for the establishment of import letters of credit for these commodities at a minimum level sufficient to cover price fluctuations, based on the bank-customer relationship.

3. In addition, all other instructions of BRPD Circular Letter No. 25/2022 shall remain unchanged.

4. These instructions are issued under the powers conferred by Section 45 of the Bank Company Act, 1991.

5. These instructions shall take immediate effect and remain in force until further instructions are issued.

Yours faithfully, (Maksuda Begum) Director (BRPD) Phone: 9530252