Call money rate rises nearly to double digit
Monday, 17 May 2010
FE Report
Call money rate rose nearly to double digit Sunday after implementation of the new cash reserve requirement (CRR) rules for the commercial banks, treasury officials said.
The call rate ranged between 4.50 per cent and 9.50 per cent on the day against 3.75 - 6.15 per cent of the previous day. However, most of the deals were settled between 7.00 per cent and 8.00 per cent.
"We're monitoring the overall situation closely to keep the market stable," a senior official of the Bangladesh Bank (BB) told the FE.
Excess liquidity amounting to over Tk 15 billion was deposited to the central bank by the commercial banks until May 16 to maintain the new CRR rules, the officials added.
Under the new rules, the commercial banks will have to maintain the 5.5 per cent CRR instead of the previous 5.0 per cent with the central bank from their total demand and time liabilities on a bi-weekly basis.
"The money market will ease shortly, if the central bank plays its role duly," a senior treasury official of a leading private commercial bank told the FE.
On the other hand, the US dollar remained unchanged against Bangladesh Taka (BDT) mainly due to low demand of the greenback in the inter-bank foreign exchange market.
The banks quoted the dollar rate between Tk 69.26 and Tk 69.27 on the day, unchanged from the previous level in the inter-bank foreign exchange market, market operators said.
Call money rate rose nearly to double digit Sunday after implementation of the new cash reserve requirement (CRR) rules for the commercial banks, treasury officials said.
The call rate ranged between 4.50 per cent and 9.50 per cent on the day against 3.75 - 6.15 per cent of the previous day. However, most of the deals were settled between 7.00 per cent and 8.00 per cent.
"We're monitoring the overall situation closely to keep the market stable," a senior official of the Bangladesh Bank (BB) told the FE.
Excess liquidity amounting to over Tk 15 billion was deposited to the central bank by the commercial banks until May 16 to maintain the new CRR rules, the officials added.
Under the new rules, the commercial banks will have to maintain the 5.5 per cent CRR instead of the previous 5.0 per cent with the central bank from their total demand and time liabilities on a bi-weekly basis.
"The money market will ease shortly, if the central bank plays its role duly," a senior treasury official of a leading private commercial bank told the FE.
On the other hand, the US dollar remained unchanged against Bangladesh Taka (BDT) mainly due to low demand of the greenback in the inter-bank foreign exchange market.
The banks quoted the dollar rate between Tk 69.26 and Tk 69.27 on the day, unchanged from the previous level in the inter-bank foreign exchange market, market operators said.