BB boosts forex support to banks
Friday, 25 March 2011
FE Report
The central bank has strengthened its foreign exchange support through selling the US dollar directly as well as providing overdraft (OD) facilities to the banks for settlement of import bills. "The central bank wants to minimise mismatch in supply and demand for foreign exchange in the market through strengthening such supports to the banks," a senior official of the Bangladesh Bank (BB) told the FE. He also said the BB has expedited the foreign currency support to the commercial banks to settle import payment bills for essential items including food grains, petroleum products and power plant equipment. As part of the operation, the central bank sold US$ 30 million directly to three state-owned commercial banks Thursday to meet the growing demand for the greenback. Besides, the BB has provided OD facilities for $ 75 million to two SCBs on the same day on the same ground, the central bank official said. "Such operation will continue in line with the market requirement," the BB official said, adding that the central bank is monitoring the overall market situation closely. He also said the BB has so far pumped $ 733 million directly to the commercial banks to meet the soaring demand for the greenback in the current fiscal year. The central bank has taken the latest measures against the backdrop of depreciation of Bangladesh Taka (BDT) by 0.93 per cent against the US dollar in the last five working days of the week, following an increased demand for the greenback to settle import payments by the commercial banks. The US dollar was quoted at Tk 72.59-Tk 72.65 in the inter-bank foreign exchange market Thursday against Tk 71.94-Tk 71.98 on March 17, the BB data showed.
The central bank has strengthened its foreign exchange support through selling the US dollar directly as well as providing overdraft (OD) facilities to the banks for settlement of import bills. "The central bank wants to minimise mismatch in supply and demand for foreign exchange in the market through strengthening such supports to the banks," a senior official of the Bangladesh Bank (BB) told the FE. He also said the BB has expedited the foreign currency support to the commercial banks to settle import payment bills for essential items including food grains, petroleum products and power plant equipment. As part of the operation, the central bank sold US$ 30 million directly to three state-owned commercial banks Thursday to meet the growing demand for the greenback. Besides, the BB has provided OD facilities for $ 75 million to two SCBs on the same day on the same ground, the central bank official said. "Such operation will continue in line with the market requirement," the BB official said, adding that the central bank is monitoring the overall market situation closely. He also said the BB has so far pumped $ 733 million directly to the commercial banks to meet the soaring demand for the greenback in the current fiscal year. The central bank has taken the latest measures against the backdrop of depreciation of Bangladesh Taka (BDT) by 0.93 per cent against the US dollar in the last five working days of the week, following an increased demand for the greenback to settle import payments by the commercial banks. The US dollar was quoted at Tk 72.59-Tk 72.65 in the inter-bank foreign exchange market Thursday against Tk 71.94-Tk 71.98 on March 17, the BB data showed.