Bangladesh Bank has eased the import restrictions on various essential commodities to ensure adequate stock of such items during the upcoming Ramadan.
Essential commodity prices typically increase during the month of fasting for Muslims as traders raise their markup to capitalise on supply shortages. Also, market syndicates often create false supply shortages to drive up prices.
The central bank’s decision was communicated through a circular on Tuesday, which said banks can now open letters of credit (LCs) for rice, wheat, onion, pulses, edible oil, sugar, eggs, chickpeas, spices and dates based on client relations.
Bangladesh Bank also suggested that commercial banks keep minimum margins or advance payments for imports of Ramadan essentials.
The relaxed LC rules will remain in effect until 31 March.
