BB closely watching movement of major foreign currencies

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Siddique Islam
The Bangladesh Bank (BB) is watching the movement of major foreign currencies and liquidity position of some international commercial banks operating globally that may face crisis because of the global financial turmoil.
The Forex Reserve and Treasury Management Department (FRTMD) of the central bank is closely monitoring the international financial volatility aiming to save the country's foreign currency investment in different banks globally, officials said.
"We've deposited our foreign currencies with 42 foreign commercial banks along with seven central banks across the world," a senior BB official told the FE Saturday.
He also said FRTMD is closely monitoring the overall international financial development for the last two weeks.
"Our foreign currencies invested abroad are still safe," he added.
On Wednesday, high officials of the central bank reviewed the overall global financial situation as a precautionary measure to avoid any financial shock.
The BB officials, however, have not found any financial transaction between the globally troubled banks and the local commercial banks.
The country's banking system will not face any risk because of the international financial turmoil as there is no financial deal between the local banks and the globally troubled banks, they added.
Meanwhile, the International Monetary Fund (IMF) urged central banks across the globe to provide direct support to the banking system, saying some US$ 657 billion would be needed in the next few years.
The US government approved a law Friday to buy $700 billion worth of bad mortgages and other assets from banks, which would wipe debts from their books with the hope that they would be able to start lending more freely again.
The European Central Bank Tuesday pumped $50 billion back into inter-bank money markets, but it said banks sought more than double that amount.