BB provides OD facilities worth $55m to two SCBs
FE Report | Friday, 13 June 2008
The central bank has provided overdraft (OD) facilities for US$55 million to two state-owned commercial banks (SCBs) for settlement of its oil import bills, officials said.
"We have provided the OD facilities to the SCBs against its government approved securities and reverse repo auction to settle import payment bills for petroleum products," a senior official of the Bangladesh Bank (BB) told the FE Thursday.
The central bank has continued its intervention in the inter-bank foreign exchange market by selling 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 BB sold US$4.0 million at the market rate to two commercial banks Wednesday last to meet their demand for the greenback.
The central bank started intervention in the inter-bank foreign exchange market through selling of the US dollar in October 29 last, which also helped the local currency appreciate against the US dollar.
The BB has since sold $720 million to the commercial banks as part of its intervention in the market, they confirmed.
"We have provided the OD facilities to the SCBs against its government approved securities and reverse repo auction to settle import payment bills for petroleum products," a senior official of the Bangladesh Bank (BB) told the FE Thursday.
The central bank has continued its intervention in the inter-bank foreign exchange market by selling 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 BB sold US$4.0 million at the market rate to two commercial banks Wednesday last to meet their demand for the greenback.
The central bank started intervention in the inter-bank foreign exchange market through selling of the US dollar in October 29 last, which also helped the local currency appreciate against the US dollar.
The BB has since sold $720 million to the commercial banks as part of its intervention in the market, they confirmed.