The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) is concerned that banks will overcharge for letters of credit (L/Cs) opened during the Muslim holy month of Ramadan.

The concerns are part of a scenario whereby traders routinely charge inflated prices for essential items during Ramadan, because demand for food for night time feasting doubles during the holy month.

Margins and commissions

The FBCCI president Mir Nasir Hossain has specifically requested banks to keep L/C margins and commissions at minimal levels during Ramadan.

Hossain also urged banks to use the prevailing base rate for foreign currency exchange rate calculations when L/Cs are opened that month.

More essentials

Additionally, the FBCCI has called on the traders to import more essentials and urged the government to import food items on an emergency basis to ensure market stability.

The federation has also suggested that companies obtain and supply food direct to their staff during Ramadan, which begins on or around 13 September this year.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.