On Sep. 5, BNG CB issued circular re rate for import letters of credit.
BNG CB introduced guidelines for setting cash margin rates for import letters of credit, to ensure effective currency and loan management amidst global economic instability.
Follows BNG CB Jun. 2023 updated on the margin for import financing, see #176882.
Cash Margin Rates
Cash margin rates for opening import letters of credit should generally be determined based on the banker-customer relationship, facilitating smoother trade and commerce.
A 100% cash margin is required for the list of luxury items and domestically produced substitutes given, including motorcars, electronics, gold, precious metals, cosmetics.
Effectiveness
The circular is effective from Sep. 5, 2024.
Nov. 2024 Fertilizer Imports
On Nov. 13, 2024, BNG CB said banks must give highest priority to establishing letters of credit for fertilizer imports, to ensure adequate supply and reasonable pricing.
The directive takes effect immediately and will remain valid until Dec. 31, 2025.
