Industry

BB raises LC margin integrating foreign currencies

Bangladesh Bank (BB) has changed the LC margin and asked banks to preserve 50 to 75 percent LC margin for imports, suspending a directive issued on April 11 in this regard.

Banking regulations and policy department (BRPD) of BB on Tuesday issued the new directive with effect immediately which will remain in force until further notice.

Russia-Ukraine war and considering changing global situation the BB has changed the earlier LCs margin for better management of loans and integrated foreign currencies, said the directive.

The central bank has fixed a margin for opening letter of credit (LC) at a minimum 75 percent for motor cars, home appliance electronics and electrical products.

Minimum 50 percent margin has been asked to be preserved to open LCs for importing all other goods and products excluding baby food, essential food items and fuel, life-saving medicines, local and export-oriented industries and agricultural related products.

Source: United News of Bangladesh