$12m BB OD for another SCB to foot oil import bills
FE Report | Friday, 1 August 2008
The central bank has provided overdraft (OD) facilities for US$12 million to a state-owned commercial bank (SCB) for settlement of its oil import bills, officials said.
"We have provided such facilities to the SCB against reverse repo auction to settle import payment bills for petroleum products," a senior official of the Bangladesh Bank (BB) told the FE Thursday.
He also said the central bank will continue such foreign currency support to the commercial banks mainly for making payments of fuel oils and food grains.
On Tuesday last, the BB provided OD facilities for US$10 million to another SCB for settlement of its fuel oil import bills.
"We prefer to provide OD facilities than outright sale of the US dollar to the banks for keeping the country's money market stable," the official noted.
The BB has continued its intervention in the inter-bank foreign exchange market by selling and buying US dollar directly and providing such short term facilities to the banks aiming to keep the market stable, they added.
As part of the intervention, the central bank has bought US$9.50 million from the commercial banks at a rate of Tk 68.50 recently to keep the country's forex market stable.
On the other hand, the BB started intervention in the market by selling the US currency directly to the commercial banks from October 29 last year to keep the market stable.
Since then, the central bank sold $735 million to the commercial banks as part of its intervention in the market.
"We have provided such facilities to the SCB against reverse repo auction to settle import payment bills for petroleum products," a senior official of the Bangladesh Bank (BB) told the FE Thursday.
He also said the central bank will continue such foreign currency support to the commercial banks mainly for making payments of fuel oils and food grains.
On Tuesday last, the BB provided OD facilities for US$10 million to another SCB for settlement of its fuel oil import bills.
"We prefer to provide OD facilities than outright sale of the US dollar to the banks for keeping the country's money market stable," the official noted.
The BB has continued its intervention in the inter-bank foreign exchange market by selling and buying US dollar directly and providing such short term facilities to the banks aiming to keep the market stable, they added.
As part of the intervention, the central bank has bought US$9.50 million from the commercial banks at a rate of Tk 68.50 recently to keep the country's forex market stable.
On the other hand, the BB started intervention in the market by selling the US currency directly to the commercial banks from October 29 last year to keep the market stable.
Since then, the central bank sold $735 million to the commercial banks as part of its intervention in the market.