BB extends $5.0m OD facility to another SCB
Wednesday, 24 December 2008
FE Report
The central bank provided an overdraft (OD) facility worth US$5.0 million (50 lakh) to a state-owned commercial bank (SCB) Tuesday for settlement of oil import bills.
'We've provided the OD facility to the SCB against the government-approved securities to settle the bills on import of petroleum products,' a senior official of the Bangladesh Bank (BB) told the FE.
The official also said the central bank will continue its foreign currency support to the commercial banks mainly for making payments on import of fuel oils, fertiliser and foodgrains.
On December 15 last also, the BB offered an OD facility worth $40 million to another SCB for settlement of its fuel oil import bills.
Import of petroleum products sharply rose by 56.61 per cent to $923.03 million during the July-October period of this fiscal from $578.31 million of the corresponding period of the previous fiscal, according to the central bank statistics.
The central bank of Bangladesh continues 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, officials said.
As part of the intervention, the central bank recently bought $139 million from a foreign commercial bank.
The central bank provided an overdraft (OD) facility worth US$5.0 million (50 lakh) to a state-owned commercial bank (SCB) Tuesday for settlement of oil import bills.
'We've provided the OD facility to the SCB against the government-approved securities to settle the bills on import of petroleum products,' a senior official of the Bangladesh Bank (BB) told the FE.
The official also said the central bank will continue its foreign currency support to the commercial banks mainly for making payments on import of fuel oils, fertiliser and foodgrains.
On December 15 last also, the BB offered an OD facility worth $40 million to another SCB for settlement of its fuel oil import bills.
Import of petroleum products sharply rose by 56.61 per cent to $923.03 million during the July-October period of this fiscal from $578.31 million of the corresponding period of the previous fiscal, according to the central bank statistics.
The central bank of Bangladesh continues 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, officials said.
As part of the intervention, the central bank recently bought $139 million from a foreign commercial bank.