One more SCB gets $30m OD facility to foot oil import bills
FE Report | Friday, 15 August 2008
The central bank provided the overdraft (OD) facility for 30 million more US dollars Thursday to a state-owned commercial bank (SCB) for settlement of fuel oil import bills, officials said.
'We've provided the SCB with such a facility against the government-approved securities aiming to keep both money and foreign exchange markets stable,' a senior official of the Bangladesh Bank (BB) told FE.
On Monday last, the central bank offered such a short-term foreign currency facility for $25 million to another SCB to settle fertiliser import bills.
He also said the BB will continue the move to provide such support to commercial banks mainly for making payments for import of essential items, including petroleum products, food grains and fertiliser.
Under the move, the central bank provided the OD facility for $41 million in the last week to help at least two SCBs clear petroleum import bills, according to the officials.
The central bank continues its intervention in the inter-bank foreign exchange market by selling and buying US dollars directly and providing such facilities to commercial banks to keep the market stable.
'We've provided the SCB with such a facility against the government-approved securities aiming to keep both money and foreign exchange markets stable,' a senior official of the Bangladesh Bank (BB) told FE.
On Monday last, the central bank offered such a short-term foreign currency facility for $25 million to another SCB to settle fertiliser import bills.
He also said the BB will continue the move to provide such support to commercial banks mainly for making payments for import of essential items, including petroleum products, food grains and fertiliser.
Under the move, the central bank provided the OD facility for $41 million in the last week to help at least two SCBs clear petroleum import bills, according to the officials.
The central bank continues its intervention in the inter-bank foreign exchange market by selling and buying US dollars directly and providing such facilities to commercial banks to keep the market stable.