Baby food importers can now open letters of credit (LC) by providing a maximum of 5 percent cash on the total value of the goods, the Bangladesh Bank said on Saturday.
Prior to this, there was no LC margin for baby food import. Importers had to provide more than 5 percent cash, which would be difficult amid the ongoing coronavirus crisis.
The central bank issued a circular on Saturday for banks dealing in foreign exchange, fixing the LC margin at a maximum of 5 percent for baby food import on the basis of banker-customer relationship.
This has been done to ensure a stable market price for the product. Importers will enjoy this amenity until June 30.
"Importers have to take the maximum safety precautions to ensure that the imported goods are free of the coronavirus," the circular reads.
Besides, the central bank recently provided a bundle of packages to gear up foreign trade.
On March 23, the Bangladesh Bank allowed advance payment of $500,000 to import Covid-19 treatment material.
The next day, it allowed banks to extend the issue period for import of lifesaving drugs by their clients to a maximum of 180 days from the previous 90 days, in view of the coronavirus outbreak.