Bangladesh Bank drops mandatory 100% cash margin for fruit imports

Bangladesh Bank has withdrawn the mandatory 100 percent cash margin for fruit imports, citing stability in the foreign exchange market and reserves.

Banks and customers will now determine the cash margin for fruit imports based on their relationship, the central bank said on Sunday.

Bangladesh Bank imposed the 100 percent cash margin in September 2024 to conserve foreign currency and curb imports of non-essential goods.

The rule meant fruit importers could not access any credit facility and had to make full payment in cash.

In a letter to banks announcing the latest decision, the central bank said fruits were an essential and nutritious part of the daily diet, particularly for children, patients, elderly people and pregnant women.

“Given the desired stability in the country’s foreign exchange rate and transactions, the need for a 100 percent margin on letters of credit for fruit imports has decreased,” it said.