Bangladesh Bank (BB) has asked banks to take a minimum cash advance from importers while opening letters of credit (LCs) for rice and wheat to keep their prices at a tolerable level in the domestic market and ensure smooth supply.
The central bank on Wednesday said in a circular that the advance payment, also known as the cash LC margin, should be kept at the minimum level depending on the bank-client relationship, reports BSS.
The food crop prices are showing an upward trend owing to the disruption to the global supply chain because of the negative impacts of the Russia-Ukraine war. As a result, the transport cost of global commodities has gone up, affecting the prices in the local market.
So, it is important to keep the prices of rice and wheat at a tolerable level and ensure a smooth supply, as per the circular.