The goods to become cheaper include biscuit, chocolate, imitation jewellery, television, refrigerator, vehicle, electric fan, cassette player, plastic goods, gas and electric burner (cooking), airconditioner, washing machine, cement, footwear, newsprint, news magazine and cosmetics.

Next come imported rice, wheat and sugar to be cheaper.

The decision was taken to fulfil a condition of the International Monetary Fund (IMF) to get loans under the Poverty Reduction Growth Facilities (PRGF).

"Besides, we now have no reason to maintain LC margin that was introduced in the face of a declining foreign exchange reserves," a Bangladesh Bank top official said.

"We now have good reserves of $2.43 billion," he added.

The BB in a circular yesterday said from now on the margin will be fixed by the banks on the basis of their relations with customers.

The BB imposed a 100 percent LC margin on 56 import items in 2001 when the foreign exchange reserves slid to about $1 billion.

A raft of other measures including channelling illegal remittance transfers to official system, cutting down on import-oriented annual development programme and increasing foreign assistance flow improved the reserves. The IMF then dictated that the LC margin should go by November.

Consequently, the BB relaxed the margin by 50 percent on 56 categories of items on October 16.

The next day, the central bank withdrew LC margin on all food items including onion, lentil, spice and date to control their prices during Ramadan. However, a 25 percent margin on rice and wheat and 50 percent on sugar remained till yesterday.

Commenting on the margin withdrawal, President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Abdul Awal Mintoo said, "Financial restrictions hike import cost by 7 to 10 percent. This decision is very timely as it will help lower commodity prices."

With the withdrawal of the margin, the government implements all but one conditions of the IMF to be eligible to get the second tranche of $70 million PRGF loan.

The loan condition yet to be fulfilled is introduction of market-pegged interest rate for savings instruments.

The finance ministry Monday at a meeting reviewed the IMF condition status and felt it may have to seek some more time to work on the savings instruments rates.