The Bangladesh Bank has instructed banks to keep cash margin requirements for opening letters of credit (LCs) for 10 categories of essential commodities at the minimum level based on banker-customer relationships ahead of Ramadan, aiming to facilitate imports and keep prices affordable.

The central bank issued the directive in a circular on November 8, asking all scheduled banks to give priority to opening LCs for these commodities to ensure adequate supplies in the domestic market.

The instruction covers imports of rice, wheat, flour, onions, pulses, edible oil (soybean and palm oil), sugar, chickpeas, peas, spices and dates.

Under the directive, banks will determine the cash margin based on their relationships with customers, but must keep it at the minimum level to facilitate imports.

The Bangladesh Bank said the measure was taken considering the expected rise in demand for these essential commodities during the upcoming holy month of Ramadan. It aims to facilitate imports, maintain supplies and keep prices at an affordable level.

The central bank also advised banks to give priority to opening import LCs for the listed commodities to ensure uninterrupted supply in the domestic market.

The latest directive follows earlier instructions issued on September 5, 2024, and November 11, 2025, concerning LC margins for essential commodity imports.

Through a circular issued in September 2024, the central bank had instructed banks to maintain a 100 percent cash margin for opening LCs for certain products. Later, in November 2025, it relaxed the requirement for selected essential commodities, allowing banks to keep cash margins at the minimum level based on banker-customer relationships. That facility remained effective until March 31, 2026.

The latest instruction will take effect immediately and remain in force until March 15, 2027.

The circular was issued under Section 45 of the Bank Company Act, 1991, and signed by Gazi Md Mahfuzul Islam, director of the Banking Regulation and Policy Department-1.