Call rate hits 10pc amid rush for cash

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FE Report
The local interbank call money rate hit 10 per cent Wednesday as pressure was building on withdrawal of cash from banks ahead of the Eid-ul-Fitr festival, officials said.
"The call money rate shot up on the day despite the central bank's injection of fresh funds into the market to keep it stable," a senior treasury official of a commercial bank told the FE.
The call rate ranged between 4.50 per cent and 10.00 per cent on the day against the previous range between 3.75 per cent and 8.25 per cent. However, most of the deals were settled at rates varying between 7.00 per cent and 8.00 per cent, the market operators said.
Short-term interbank borrowings normally increase before the Eid festival to meet the growing demand from bank clients.
Most of the banks located at Motijheel, Dilkusha and other commercial places of the capital witnessed on the day long queues of people waiting to withdraw money before the Eid festival.