SCB gets $12m BB OD to foot import bills
Friday, 17 October 2008
FE Report
The central bank provided overdraft (OD) worth US$12 million to a state-owned commercial bank (SCB) Thursday for settlement of its fertiliser import bills.
"We've allowed the OD facility to the SCB against the government approved securities to settle import payment bills for fertiliser," a senior official of the Bangladesh Bank (BB) told the FE on the day.
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 Wednesday, the BB provided OD worth $64 million to two SCBs for settlement of their fuel import bills.
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 BB 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 provided overdraft (OD) worth US$12 million to a state-owned commercial bank (SCB) Thursday for settlement of its fertiliser import bills.
"We've allowed the OD facility to the SCB against the government approved securities to settle import payment bills for fertiliser," a senior official of the Bangladesh Bank (BB) told the FE on the day.
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 Wednesday, the BB provided OD worth $64 million to two SCBs for settlement of their fuel import bills.
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 BB 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.