Deferred payment for 8 Ramadan essentials import

Traders will now get 90 days to pay import bills for eight essential commodities as the central bank has given the opportunity in order to ensure adequate supply of the items on the market in Ramadan.

The commodities are edible oil, chickpea, pulse, pea, onion, spices, sugar and dates.

Based on the bank-client relationship, traders can import these Ramadan essentials by also opening letters of credit with a minimum margin. The privilege will be eligible for the date of initiation of imports till 31 March next year.

"The central bank has given this privilege to authorised importers to ensure surplus supply of these commodities during Ramadan and to keep prices of these products at tolerable levels," said the Bangladesh Bank's Foreign Exchange Policy Department (FEPD) Director Md Sarwar Hossain.

Another official of the central bank said for deferred payment, banks will coordinate with the importers to lower LC margin based on its relationship with their customers.

The central bank previously fixed the opening margin rate for LC settlement at 75% to 100% in a bid to limit imports to save the depleting foreign currency reserves in the country.

Haji Md Sirajul Islam, president of the Dhaka Metropolitan Fruit Importer-Exporter and Traders Multipurpose Cooperative Society, hailed the Bangladesh Bank directive, saying, "We had to keep 100% cash margin while opening LCs for date imports. Our ability to open import LCs has increased due to the relaxation of margin conditions by the central bank. As a result, we can ensure adequate supply of dates before Ramadan."

Bangladesh Bank Spokesperson and Executive Director Mejbaul Haque said, "In the last bankers' meeting, all scheduled banks were asked to open LCs for importing Ramadan essential products at a minimum margin. The latest central bank circular came as per follow-up instructions."