Call money rate exceeds 11pc

BB buys $100m more from six banks to help keep forex market stable

SIDDIQUE ISLAM | Published: May 18, 2026 23:39:00

The inter-bank call-money rate crossed 11 per cent on Monday due mainly to increase in cash withdrawals from banks ahead of Eid-ul-Adha.
The call money rate ranged between 9.95 per cent and 11.25 per cent on the day compared to that of 9.95 per cent to 11.05 per cent previously, while most transactions were settled between 10.50 per cent and 11.00 per cent, according to market operators.
However, the weighted average rate (WAR) of call money rose to 10.63 per cent on the day from 10.19 per cent of the previous working day. The rate was 10.03 per cent a week back.
Such short-term borrowing normally gets increased before festivals including the Eid-ul-Azha and Eid-ul-Fitr as demand for cash rises significantly, they explained.
On the other hand, total turnover in the inter-bank call money market rose to Tk 47.33 billion on Monday from Tk 42.84 billion in the previous working day. It was Tk 52.99 billion a week ago.
"We're closely monitoring the market to ensure stability ahead of Eid," a senior Bangladesh Bank (BB) official told The Financial Express (FE) in response to a query.
The central banker also said the call money rate is expected to ease today (Tuesday) due to liquidity support through the repo facility and fund injections against the central bank's purchase of US dollars from banks on Monday.
The central bank purchased US$100 million more through auction from six banks in the interbank spot market on the day to help keep the exchange rate of the US dollar against the local currency stable.
The amount was bought under the Multiple Price Auction method and the cut off rate was Tk 122.75 per dollar, according to the central bank officials.
The central bank of Bangladesh has so far bought $5.98 billion from banks directly since July 13 last under the prevailing free-floating exchange rate arrangement.
Echoing the Bangladesh Bank official, a senior treasury official at a leading private commercial bank said higher cash withdrawals ahead of Eid coupled with payments of Tk 90 billion against treasury bills issued on Sunday increased pressure on the money market.
The private banker also predicted that the call money rate may fall below 11 per cent today from the current level.
siddique.islam@gmail.com