Central bank provides $10m OD facilities to a SCB
Wednesday, 15 October 2008
FE Report
The central bank has provided overdraft (OD) facilities for US$10 million to a state-owned commercial bank (SCB) recently for settlement of its food grains import bills and other overseas payments.
"We've allowed the OD facility to the SCB against the government approved securities to settle import payment bills for food grains and aircraft lease for Biman," 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, fertiliser and food grains.
On October 8 last, the BB provided OD facilities to the tune of $68 million to another SCB for settlement of its fuel oil import bills.
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 $139 million from a foreign commercial bank 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 the authorised dealers from October 29, 2007 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, officials said.
The central bank has provided overdraft (OD) facilities for US$10 million to a state-owned commercial bank (SCB) recently for settlement of its food grains import bills and other overseas payments.
"We've allowed the OD facility to the SCB against the government approved securities to settle import payment bills for food grains and aircraft lease for Biman," 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, fertiliser and food grains.
On October 8 last, the BB provided OD facilities to the tune of $68 million to another SCB for settlement of its fuel oil import bills.
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 $139 million from a foreign commercial bank 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 the authorised dealers from October 29, 2007 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, officials said.