Cenbank removes LC margin for all goods import except luxury products

The Bangladesh Bank has removed the Letter of Credit margin on all types of imports, except luxury goods and domestically produced goods of Bangladesh, in a bid to speed up the country’s industry and trade.

From now on, traders can import all types of capital machinery, consumer goods, and raw materials on the basis of the bank-customer relationship without any cash margin, according to a circular issued by the central bank today (5 September) to the managing directors of all scheduled banks.

The circular states that such instructions have been given to speed up the country’s business-industry-trade as the foreign currency exchange rate and transactions have gradually reached a level of stability,