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DHAKA, Jan 02, 2025 (BSS) - Bangladesh Bank (BB) has lowered the cash margin
for opening letters of credit (LC) to import motorcars, as the country's
foreign exchange flow is on an upward trend.
 
Banks will be able to import fully electric and hybrid motorcars by setting
the LC margin based on the banker-customer relationship, said a BB circular
issued today.
 
However, lenders will still have to maintain a 50 percent cash margin to
import other motorcars, such as sedans, Sport Utility Vehicles (SUVs), and
Multi-Purpose Vehicles (MPVs), that are not fully electric or hybrid.
 
The new rules will come into effect on February 1 this year.
 
The circular noted that the use of fully electric and hybrid vehicles is
being prioritized globally due to their fuel efficiency and environmental
benefits.
 
Such models of cars can play a significant role in reducing carbon emissions
and improving the air quality index in this densely populated country, it
added.