$25m BB OD for SCB to foot oil, food import bills
Friday, 19 September 2008
FE Report
The central bank provided overdraft (OD) facilities for US$25 million to a state-owned commercial bank (SCB) Thursday for settlement of its oil and food grains import bills.
"We've provided the OD facilities to the SCB against the government approved securities to settle import payment bills for petroleum products and food grains," a senior official of the Bangladesh Bank (BB) told the FE.
He also said the central bank will continue its foreign currency support to the commercial banks mainly for making payments of fuel oils, fertiliser and food grains.
On September 15 last, the central bank provided OD for $23 million to another SCB for settlement of its fuel oil import bills.
The BB continues 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.
As part of the intervention, the central bank has bought $9.50 million from the commercial banks recently.
On the other hand, the BB started intervention in the market by selling the US currency directly to authorised dealers from October 29 last year to keep the market steady.
The central bank has since sold $735 million to the commercial banks as part of its intervention in the market, they confirmed.
The central bank provided overdraft (OD) facilities for US$25 million to a state-owned commercial bank (SCB) Thursday for settlement of its oil and food grains import bills.
"We've provided the OD facilities to the SCB against the government approved securities to settle import payment bills for petroleum products and food grains," a senior official of the Bangladesh Bank (BB) told the FE.
He also said the central bank will continue its foreign currency support to the commercial banks mainly for making payments of fuel oils, fertiliser and food grains.
On September 15 last, the central bank provided OD for $23 million to another SCB for settlement of its fuel oil import bills.
The BB continues 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.
As part of the intervention, the central bank has bought $9.50 million from the commercial banks recently.
On the other hand, the BB started intervention in the market by selling the US currency directly to authorised dealers from October 29 last year to keep the market steady.
The central bank has since sold $735 million to the commercial banks as part of its intervention in the market, they confirmed.