The Bangladesh Bank (BB) has directed all banks to maintain a 100% cash margin on the import of 14 luxury items, such as gold, cosmetics, processed food, soft drinks, and leather products, to bolster the nation's foreign currency reserves.
The Banking Regulations and Policy Department (BRPD) of the central bank issued the directive on Thursday (5 September).
According to the Bangladesh Bank's instructions, the decision aims to consolidate the country's currency and credit management in response to the ongoing global economic instability.
A full 100% cash margin will be required for establishing import loans for luxury goods and domestically produced import alternatives.
The list of items affected by the 100% cash margin requirement includes motor vehicles, electronic home or office appliances, gold and jewellery, precious metals and pearls, ready-made garments, leather goods, jute products, furniture and decorative items, fruits and flowers, non-cereal food, processed and canned food, chocolate, biscuits, juices, coffee, soft drinks, alcoholic beverages, tobacco, and tobacco-related or alternative products.
