Dhaka, Oct. 21 -- Bangladesh Bank (BB) has announced a significant relaxation on the import of crucial food items for infants, allowing the margin for Letters of Credit (LCs) for baby food imports to be set based on bank-customer relations.

To this end, the central bank on Tuesday issued a circular, asking banks to implement the directive immediately, reports BSS.

Earlier, BB had instructed commercial banks to maintain a 100 per cent cash margin for establishing import LCs related to certain categories, including non-cereal food, processed food, and beverages. These previously mentioned products included items such as canned food, chocolate, biscuits, juice, coffee, and soft drinks.

Bangladesh Bank recently became aware that some banks...