BB provides $23m OD facilities to SCB
Tuesday, 16 September 2008
FE Report
The central bank provided overdraft (OD) facilities for US$23 million to a state-owned commercial bank (SCB) Monday 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 Monday.
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 4 last, the BB offered OD facilities for $38 million to another SCB for settlement of its fuel oil import bills.
The central bank provided OD facilities worth around $700 million from July last to September 15 to the SCBs for making payment of their import bills.
Of the amount, at least $188 million has remained unadjusted with the central bank, officials said.
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 $9.50 million from the commercial banks 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 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.
The central bank provided overdraft (OD) facilities for US$23 million to a state-owned commercial bank (SCB) Monday 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 Monday.
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 4 last, the BB offered OD facilities for $38 million to another SCB for settlement of its fuel oil import bills.
The central bank provided OD facilities worth around $700 million from July last to September 15 to the SCBs for making payment of their import bills.
Of the amount, at least $188 million has remained unadjusted with the central bank, officials said.
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 $9.50 million from the commercial banks 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 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.