BRPD Circular Letter No. 50: L/C Margin for Import of Rice and Wheat

Bangladesh Bank Chief Executive Motijheel, Dhaka-1000 Bangladesh. Ref No.: BRPD Banking Regulation and Policy Department 14 December 2022 BRPD Circular Letter No. 50 Date: ------------------ 29 Agrahayan 1429 Managing Director / Chief Executive Officer All Scheduled Banks operating in Bangladesh. Dear Sir, Regarding the maintenance of cash margin in the context of Letter of Credit margin for the import of rice and wheat.

1. In recent times, the negative impact of the Russia-Ukraine war has been observed in the disruption of international market supply chains (supply chain). Additionally, the increase in domestic product transportation costs is also observed to have a negative impact on food grain prices. It is necessary to ensure future food security by maintaining the continuous supply of the country's main food grains, rice and wheat, along with keeping their prices within a tolerable range.

2. In this business context, instructions are hereby given to maintain the cash margin rate for Letters of Credit for the import of rice and wheat at a minimum range based on the bank-customer relationship, with the aim of keeping domestic market prices of rice and wheat within a tolerable range and maintaining a continuous supply system.

3. This instruction is issued under the powers conferred by Section 45 of the Bank Company Act, 1991.

4. This instruction shall take immediate effect and remain in force until further instructions are issued.

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