BB eases imports of raw materials

The Bangladesh Bank (BB) today eased the process of importing raw materials and capital machinery in order to improve the business situation and ensure the supply of essential consumer goods to the local market.
A circular issued by the central bank said that the decision was made as the foreign exchange reserves had improved.
From now on, banks can set the margin level when opening letters of credit (LCs) against imported goods based on bank-client relationships.
However, importers will still have to pay 100 percent to open letters of credit for several luxury goods and import substitutes.
In 2022, the BB had asked banks to take up to 100 percent of the payment in advance from businesses while opening LCs for luxury and non-essential items in an effort to keep forex reserves stable.
These included motor cars (sedans, SUVs, and MPVs), electrical and electronics, home appliances, gold and jewellery, valuable assets and pearls, ready-made garments, leather goods, jute products, toiletries, furniture, fruits and flowers, non-cereal food, processed food, alcohol, and tobacco.
Importers were instructed to pay 75 percent of the import prices for all other goods upfront.
Later, the central bank relaxed rules regarding financing availed by commercial importers to cater to cottage, micro, small and medium enterprises, aiming to accelerate the growth of industries and jobs.