Bangladesh Bank eases import credit terms ahead of Ramadan

Detailed summary

The move comes about three months before the start of Ramadan in February, when demand for these commodities typically rises ...

To help stabilise prices and ensure an adequate supply of essential commodities during Ramadan, Bangladesh Bank (BB) has allowed commercial imports of 10 essential food items under relaxed payment terms.

In a circular, the BB said rice, wheat (flour), onion, pulses, edible oil (soybean and palm oil), sugar, chickpeas, peas, spices and dates could be imported on usance terms for up to 90 days under suppliers’ or buyers’ credit.

Under usance terms, importers can receive goods before making payment, with up to 90 days to settle the bill. Suppliers’ credit allows importers to pay exporters at a later date, while buyers’ credit involves financing from a bank or financial institution.

The move comes about three months before the start of Ramadan in February, when demand for these commodities typically rises.

Bangladesh meets most of its requirements for wheat, edible oil, sugar, pulses, chickpeas and dates through imports.

The central bank said the facility would remain effective until March 15, 2027.

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