Call money rate moves up ahead of Eid

---

FE Report
The inter-bank call money rate moved up slightly Monday as withdrawing funds from the market by the central bank ahead of the Eid-ul-Fitr festival.
The short-term borrowings normally increase before the Eid festival to meet the growing demand of the bank clients, treasury officials said.
The call rate ranged between 0.75 per cent and 5.00 per cent on the day against 0.10 per cent and 3.00 per cent of the previous day. However, most of the deals were settled between 1.00 per cent and 2.00 per cent, the market operators said.
The central bank has withdrawn Tk 9.30 billion from the market issuing treasury bills and 30-Day Bangladesh Bank Bills, they added.
On Sunday, the BB accepted Tk 5.0 billion and Tk 4.0 billion for the 91-day and 364-day treasury bills respectively. The fund was withdrawn from the market Monday.
Besides, the central bank accepted one bid out of three on the day amounting to Tk 300 million for the 30-Day Bangladesh Bank Bills on Monday's auction.
The rang of weighted average yield of the accepted bid rose to 1.00 per cent on the day from 0.97 per cent of the previous auction, held on August 31 last, according to auction results.
"The call rate may rise further ahead of the Eid festival," a senior treasury official told the FE, adding that it would depend on the BB's monetary operations.
A total of Tk 29.27 billion withdrawn by the central bank in the last 29 day issuing 30-Day Bangladesh Bank Bills aiming to mop up excess liquidity from the market.
"Such monetary operation may continue till the time the authorities feel appropriate," a senior BB official told the FE, adding that the central bank reintroduced the auction of 30-day Bangladesh Bank Bills on August 10 aiming to mop up the excess liquidity from the market.
The overall excess liquidity with the commercial banks stood at Tk 347 billion in June last, accounting for 165 per cent growth over the corresponding period of the previous fiscal.
On the other hand, the US dollar remained unchanged against Bangladesh Taka (BDT) due mainly to low demand of the greenback in the inter-bank foreign exchange market.
The banks quoted the dollar signal rate at Tk 69.06 Monday unchanged from the previous level in the inter-bank foreign exchange market, market operators added.