SCB sanctioned $7m OD to settle fuel import bills
FE Report | Tuesday, 26 August 2008
The central bank sanctioned overdraft (OD) facilities for $7.0 million Monday to a state-owned commercial bank (SCB) for settlement of fuel oil import bills, officials said.
The amount is in addition to the OD facility offered by the Bangladesh Bank (BB) ten days ago on August 14 to the same SCB for $30 million for paying fuel import bills.
"We have provided the SCB such facilities against reverse repo to settle import payment bills for petroleum products," a senior official of the Bangladesh Bank (BB) told the FE.
He also said the central bank will continue to give such foreign currency support to the commercial banks mainly for making import payments of petroleum products and food grains.
The central bank has continued its intervention in the inter-bank foreign exchange market by directly selling and buying the greenback and providing such short term facilities to the banks aiming to keep the foreign exchange market stable, officials said.
As part of the intervention, the central bank has bought $9.50 million from the commercial banks recently to keep the country's foreign exchange market stable.
On the other hand, the central bank has started intervention in the market by selling the US currency directly to the commercial banks since October 29 last year to keep the market steady.
The BB has since sold $735 million to the commercial banks as part of its intervention in the market, they added.
The amount is in addition to the OD facility offered by the Bangladesh Bank (BB) ten days ago on August 14 to the same SCB for $30 million for paying fuel import bills.
"We have provided the SCB such facilities against reverse repo to settle import payment bills for petroleum products," a senior official of the Bangladesh Bank (BB) told the FE.
He also said the central bank will continue to give such foreign currency support to the commercial banks mainly for making import payments of petroleum products and food grains.
The central bank has continued its intervention in the inter-bank foreign exchange market by directly selling and buying the greenback and providing such short term facilities to the banks aiming to keep the foreign exchange market stable, officials said.
As part of the intervention, the central bank has bought $9.50 million from the commercial banks recently to keep the country's foreign exchange market stable.
On the other hand, the central bank has started intervention in the market by selling the US currency directly to the commercial banks since October 29 last year to keep the market steady.
The BB has since sold $735 million to the commercial banks as part of its intervention in the market, they added.