Ahead of the upcoming Ramadan, Bangladesh Bank has eased cash margin requirements for opening letters of credit (LCs) on essential imports resulting in a sharp increase in LCs for dates, sugar, and chickpeas while LCs for onions have significantly declined.

According to a circular issued by Bangladesh Bank, the relaxed LC margin facility—applicable for items such as dates, sugar, edible oil, lentils, chickpeas, onions, and spices—will remain in force until March 31, 2026, and banks are instructed to set the margin based on the banker‑customer relationship, rather than a fixed percentage.

The central bank has also prioritized opening LCs for these essential goods to ensure stable supply and prevent price spikes during Ramadan.

Preliminary data shows that importers are responding: LCs for dates are rising sharply as traders rush to secure supplies, while allocation for onions is falling, likely due to a stronger domestic harvest.

A Bangladesh Bank spokesperson, Arif Hossain Khan, said the move is designed to reduce upfront costs for importers, ensuring adequate supply and price stability ahead of Ramadan. (

Under a related measure, the central bank has allowed importers to open LCs with a deferred payment option, allowing payment to foreign suppliers up to 90 days later—another step meant to ease cash flow pressures.