BB orders banks to cap LC margin on onion import

Bangladesh Bank (BB) on Wednesday asked banks to keep the interest rates on the loans issued to import onions at maximum 9.0 per cent, reports BSS. 

“The prices of onion are on an upward trend at local markets following the price hike of the key cooking ingredient in international markets,” said a BB circular issued on Thursday. 

Under the circumstances, BB instructed banks to keep the margins on opening letters of credits (LCs) for importing onions at a minimum level.

The instruction would be effective until December 31.