BB sets 100 percent cash margin for luxury products import

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Dhaka, Sep 5 -Bangladesh Bank (BB) has instructed banks to keep a 100 percent cash margin for importing 14 luxury goods including gold, cosmetics, processed food, soft drinks, and leather goods to overcome foreign exchange shortage.

On Thursday, BB's Banking Regulations and Policy Department (BRPD) issued instructions in this regard. This directive will be effective from Thursday.

According to the Central Bank instructions, in the context of the global economic instability situation, to keep the currency and debt management of the country more coherent, instructions are given regarding the determination of the cash margin rate for the establishment of import credit.

A cash margin of 100 percent shall be maintained in respect of the establishment of import credit for luxury goods and domestically manufactured import substitutes.

The 100 percent cash margin for import of products, motorcars, electronics home or Office Appliances, Gold and Jewellery, Precious Metals and Pearls, Ready Made Garments, Leather Goods, Jute Goods, Furniture and Decorative Items, Fruits and Flowers, non-cereal foods, processed foods and beverages or canned (cans) food, chocolate, biscuits, juice, coffee, soft drinks, etc., alcoholic beverages and tobacco, tobacco products or substitute products. - UNB