Dhaka, Bangladesh (BBN)– The central bank of Bangladesh expanded the value limit in opening letters of credit (LC) for coal import through land ports only, officials said Monday.

Under the new provisions, importers will be allowed to open LCs with value up to US$ 6,000 from $5,000 without the SWIFT mechanism for importing coal through land ports.

“We’ve relaxed the rules in line with the importers’ requirements,” a senior official at BB said, adding the latest move may reduce coal import costs.

The central bank issued a circular in this connection Monday and asked all commercial banks to follow the instruction for opening LCs for coal import.

“The BB’s latest move may ease the price of coal slightly on the local market,” a senior member of the Bangladesh Coal/Coke Importers Association told BBN in Dhaka.

Bangladesh imports around 0.8 million tons of coal from the Meghalaya state in India each year through seven to eight land ports and LC stations, market operators said.

BBN/SS/SI/AD-02February10-2:32 am (BST)