Bangladesh Bank (BB) has eased the import process for raw materials and capital machinery to boost business and ensure the availability of essential goods in the local market. The decision follows improvements in the country’s foreign exchange reserves.
According to a new BB circular, banks can now determine the margin level for opening letters of credit (LCs) based on their relationships with clients. However, importers of luxury goods and import substitutes must still pay 100% upfront for LCs.
Previously, in 2022, BB required businesses to pay full or 75% advance payments for non-essential and luxury items, such as cars, electronics, and certain food products, to stabilize forex reserves. The central bank has since relaxed some of these rules to support cottage, micro, small, and medium enterprises, aiming to foster industrial growth and job creation.
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