BB asks banks to levy minimum LC margin on rice, wheat imports

Bangladesh Bank (BB) has asked banks to take a minimum amount of cash in advance from importers while opening letters of credit (LCs) for rice and wheat to keep their prices at a bearable level in the domestic market and ensure smooth supply, reports news agency UNB.

The advance payment, also known as the cash LC margin, should be kept at the minimum level depending on the bank-client relationship, as per a central bank circular issued on Wednesday.

The grain prices are showing an upward trend owing to the disruption to the global supply chain because of the negative impacts of the Russia-Ukraine war. As a result, the transport cost of global commodities has gone up, affecting the prices in the local market.

So, it is important to keep the prices of rice and wheat at a tolerable level and ensure a smooth supply, the circular said.