<div><span style="font-size: 1rem;">The Bangladesh Bank (BB) has imposed a 100% cash margin when opening letters of credit (LC) on cars (sedans, SUVs, MPVs), electronics, gold, precious metals, RMG, and pearls, among other items to discourage imports in a bid to keep the country's currency and debt management more integrated and stable.&nbsp;</span><br></div><div><br></div><div>The central bank issued a circular in this regard and sent it to all concerned offices on Monday.</div><div><br></div><div>Banks have also been instructed to refrain from giving credit to importers to meet the margins.</div><div><br></div><div>According to the circular, the decision comes against the backdrop of the long-term negative effects of Covid-19 and more recently the Russia-Ukraine War, which led to a more unstable global economy already rocked by the pandemic.&nbsp;</div><div><br></div><div>The BB move aims to further strengthen the country's monetary and debt management amid times of such volatility, added the circular.</div><div><br></div><div>The other products that fall under the central bank's latest directives – leather products, jute products, cosmetics, furniture and decorative items, fruits and flowers, non-grain food products, processed foods and beverages.</div><div>&nbsp;</div><div>Meanwhile, for – baby food, essential food products, fuel, life-saving drugs and medical equipment recognised by the Directorate General of Health Services (DGHS), directly imported capital equipment and raw materials for manufacturing oriented local industries and export-oriented industries, essential commodities for use in government priority projects – the margin for LC opening has been set at a minimum of 75%.</div><div><br></div><div>bnbd24/TR</div>