BB continues forex support to help banks settle import bills
Tuesday, 5 April 2011
FE Report
The central bank continues 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. "We've been maintaining foreign currency support to the commercial banks to settle import payment bills for essential items including food grains, fuel oils and power plant equipment," a senior official of the Bangladesh Bank (BB) told the FE. He also said the central bank wants to minimise mismatch in supply and demand of foreign exchange in the market through providing such supports to the banks. As part of the operation, the central bank sold US$5.0 million at market rate to a state-owned commercial bank (SCB) directly Monday to meet the growing demand for the greenback. The US dollar was quoted at Tk 72.79-Tk 72.81 in the inter-bank foreign exchange market on the day against Tk 72.75 -Tk 72.80 of the previous working day. Besides, the BB has provided OD facilities for $10 million to the same SCB on the same day and on the same ground, the central bank official added. "Such operation will continue in line with the market requirements," another BB official said, adding that the central bank is monitoring the overall market situation closely. The central bank has so far pumped in $753 million directly to the commercial banks to meet the soaring demand for the greenback in the current fiscal year, the BB official added.
The central bank continues 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. "We've been maintaining foreign currency support to the commercial banks to settle import payment bills for essential items including food grains, fuel oils and power plant equipment," a senior official of the Bangladesh Bank (BB) told the FE. He also said the central bank wants to minimise mismatch in supply and demand of foreign exchange in the market through providing such supports to the banks. As part of the operation, the central bank sold US$5.0 million at market rate to a state-owned commercial bank (SCB) directly Monday to meet the growing demand for the greenback. The US dollar was quoted at Tk 72.79-Tk 72.81 in the inter-bank foreign exchange market on the day against Tk 72.75 -Tk 72.80 of the previous working day. Besides, the BB has provided OD facilities for $10 million to the same SCB on the same day and on the same ground, the central bank official added. "Such operation will continue in line with the market requirements," another BB official said, adding that the central bank is monitoring the overall market situation closely. The central bank has so far pumped in $753 million directly to the commercial banks to meet the soaring demand for the greenback in the current fiscal year, the BB official added.