BB provides $10m to SCB to settle oil import bills
FE Report | Thursday, 31 July 2008
The central bank has provided overdraft (OD) facilities for US$10 million to a state-owned commercial bank (SCB) for settlement of its oil import bills, officials said.
"We have provided the OD facilities to the SCB against reverse repo auction to settle import payment bills for petroleum products," a senior official of the Bangladesh Bank (BB) told the FE Tuesday.
He also said the central bank will continue its foreign currency support to the commercial banks mainly for making payments of fuel oils and food grains.
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, they added.
As part of the intervention, the central bank has bought US$9.50 million from the commercial banks at a rate of Tk 68.50 recently to keep the country's forex market stable.
In December last, the central bank also purchased at least $37 million from the commercial banks as part of its intervention.
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 stable.
Since then, the central bank sold $735 million to the commercial banks as part of its intervention in the market.
"We have provided the OD facilities to the SCB against reverse repo auction to settle import payment bills for petroleum products," a senior official of the Bangladesh Bank (BB) told the FE Tuesday.
He also said the central bank will continue its foreign currency support to the commercial banks mainly for making payments of fuel oils and food grains.
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, they added.
As part of the intervention, the central bank has bought US$9.50 million from the commercial banks at a rate of Tk 68.50 recently to keep the country's forex market stable.
In December last, the central bank also purchased at least $37 million from the commercial banks as part of its intervention.
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 stable.
Since then, the central bank sold $735 million to the commercial banks as part of its intervention in the market.