$68m OD facilities for a govt bank
Thursday, 9 October 2008
FE Report
The central bank has provided overdraft (OD) facilities for US$68 million more to a state-owned commercial bank (SCB) for settlement of its oil import bills.
"We've provided the OD facilities to the SCB against the government approved securities to settle import payment bills for petroleum products," a senior official of the Bangladesh Bank (BB) told the FE Wednesday.
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 18 last, the BB offered OD facilities of $25 million to another SCB for settlement of its fuel oil and food grains import bills.
The central bank 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.
As part of the intervention, the central bank has bought $139 million from a foreign commercial bank recently to keep the country's inter-bank foreign exchange market stable.
On the other hand, the BB started intervention in the market by selling the US currency directly to the authorised dealers from October 29,2007 to keep the market stable.
The central bank has provided overdraft (OD) facilities for US$68 million more to a state-owned commercial bank (SCB) for settlement of its oil import bills.
"We've provided the OD facilities to the SCB against the government approved securities to settle import payment bills for petroleum products," a senior official of the Bangladesh Bank (BB) told the FE Wednesday.
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 18 last, the BB offered OD facilities of $25 million to another SCB for settlement of its fuel oil and food grains import bills.
The central bank 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.
As part of the intervention, the central bank has bought $139 million from a foreign commercial bank recently to keep the country's inter-bank foreign exchange market stable.
On the other hand, the BB started intervention in the market by selling the US currency directly to the authorised dealers from October 29,2007 to keep the market stable.