Dhaka, Bangladesh (BBN) – The central bank of Bangladesh on Monday provided overdraft (OD) facilities for US$23 million more to a state-owned commercial bank (SCB) for settlement of its oil import bills, officials said.
“We’ve provided the OD facilities to the SCB against the government approved securities to settle import payment bills for petroleum products,” a senior official of the Bangladesh Bank (BB), the country’s central bank, told BBN in Dhaka.
He also said the central bank will continue its foreign currency support to the commercial banks mainly for making payments of fuel oils, fertilizer and food grains.
On September 4 last, the BB offered OD facilities of $38 million to another SCB for settlement of its fuel oil import bills.
The central bank of Bangladesh provided OD facilities worth around $700 million from July last to September 15 to the SCBs for making payment of their import bills.
Of the amount, at least $188 million have remained unadjusted with the central bank, they added.
The BB 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 $9.50 million from the commercial banks 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 authorized dealers from October 29 last year 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, they confirmed.