Call money rate goes up

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FE Report The inter-bank call money rate hit 15 per cent Monday, as the banks saw withdrawal of substantial amount of cash ahead of the Eid-ul-Azha festival, treasury officials said. The call rate ranged between 12.00 per cent and 15.00 per cent on the day against the previous range between 7.25 per cent and 14 per cent. However, most of the deals were settled at rates varying between 12.00 per cent and 13.00 per cent, the market operators said. "The call money rate was almost stable on the day, following injection of fresh fund into the market by the central bank to keep it stable," a senior treasury official of a private commercial bank told the FE. He also said the short-term borrowings normally increase before the Eid to meet the growing demand for cash from the banks. The central bank continued providing liquidity support to the commercial banks to ease the increased demand for cash money ahead of the Eid festival. Under the operation, the Bangladesh Bank (BB) made available Tk 66.76 billion fresh fund to the banks on the day through auction of repurchase agreement (repo), special repo and liquidity support to the primary dealers (PDs). The central bank earlier selected 15 PDs - 12 banks and three non-banking financial institutions (NBFIs) - to deal with government securities in the secondary market.