BB strengthens intervention in forex market
Friday, 24 October 2008
Siddique Islam
The central bank has strengthened its intervention in foreign exchange market providing support to the commercial banks for settlement of import bills, especially for food grains, fuel oil and fertiliser.
The Bangladesh Bank (BB) took the move aiming to keep the country's inter-bank foreign exchange market stable, officials said.
As part of the operation, the central bank provided overdraft (OD) facilities for US$43 million to two state-owned commercial banks (SCBs) Thursday for settlement of its fertiliser import bills.
Besides, the BB sold at least $30 million at market rate directly to the two commercial banks - one is SCB and another is a foreign commercial bank -on the same day to meet the growing demand for the greenback.
"We've provided the foreign currency support to the SCBs and the foreign commercial bank to settle import payment bills for fertiliser and petroleum products," a BB senior official told the FE.
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 import.
The BB normally makes such move to help minimise mismatch in supply and demand of foreign exchange in the market, he added.
The US dollar was quoted at Tk 68.54-Tk 68.56 in the inter-bank foreign exchange market on the day against Tk 68.56- Tk 68.58 of the previous working day, market operators said.
On October 21 last, the central bank offered OD worth $15 million to another SCB for settlement of its fertiliser import bills while a total of $10 million was sold to a specialised bank to meet import payment obligations for the same agriculture input.
The central bank continues 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 bought $139 million from a foreign commercial bank recently.
The BB started intervention in the market by selling the US currency directly to the authorised dealers from October 29, 2007 to keep the market steady.
The central bank has since sold $735 million to the commercial banks as part of its intervention in the market, officials confirmed.
The central bank has strengthened its intervention in foreign exchange market providing support to the commercial banks for settlement of import bills, especially for food grains, fuel oil and fertiliser.
The Bangladesh Bank (BB) took the move aiming to keep the country's inter-bank foreign exchange market stable, officials said.
As part of the operation, the central bank provided overdraft (OD) facilities for US$43 million to two state-owned commercial banks (SCBs) Thursday for settlement of its fertiliser import bills.
Besides, the BB sold at least $30 million at market rate directly to the two commercial banks - one is SCB and another is a foreign commercial bank -on the same day to meet the growing demand for the greenback.
"We've provided the foreign currency support to the SCBs and the foreign commercial bank to settle import payment bills for fertiliser and petroleum products," a BB senior official told the FE.
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 import.
The BB normally makes such move to help minimise mismatch in supply and demand of foreign exchange in the market, he added.
The US dollar was quoted at Tk 68.54-Tk 68.56 in the inter-bank foreign exchange market on the day against Tk 68.56- Tk 68.58 of the previous working day, market operators said.
On October 21 last, the central bank offered OD worth $15 million to another SCB for settlement of its fertiliser import bills while a total of $10 million was sold to a specialised bank to meet import payment obligations for the same agriculture input.
The central bank continues 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 bought $139 million from a foreign commercial bank recently.
The BB started intervention in the market by selling the US currency directly to the authorised dealers from October 29, 2007 to keep the market steady.
The central bank has since sold $735 million to the commercial banks as part of its intervention in the market, officials confirmed.