BB makes compulsory 100pc cash margin for imports of 14 goods

Bangladesh Bank has mandated a 100 percent cash margin for import of 14 specific goods. The order covers luxury items and domestically produced import substitutes, including processed food products, soft drinks, and leather products.

In a new directive issued on September 5 the central bank's Banking Regulations and Policy Department released the instructions to address global economic instability and enhance currency and credit management. Under this directive, import credits for luxury goods and domestic substitutes must maintain a 100 percent cash margin.

The list of affected goods includes motor cars, cosmetics, electrical appliances, furniture, gold, jewelry, fruits, flowers, non-cereal food products, ready-made clothing, processed foods, beverages, chocolate, biscuits, juice, coffee, soft drinks, leather products, alcoholic beverages, jute products, tobacco, and substitute products.

This directive, issued under Section 29 of the Bank Companies Act, 1991, will be effective immediately, the circular said.