Call money rate steady at high, dollar stable
Monday, 15 December 2008
FE Report
The inter-bank call money rate remained steady at previous high Sunday with injection of fresh cash through repurchase agreement (repo). The market continued facing liquidity constraints due to withdrawal of cash through treasury bills and reverse repo auctions. The US dollar was also stable against Bangladesh taka (BDT) in the inter-bank foreign exchange market because of buying pressures, fund managers said.
The call rate in extreme range fluctuated mainly between 8.50 per cent and 20.0 per cent repeating previous trading day's range.
Most deals were, however, transacted at rates varying between 10.0 per cent and 15 per cent against previous day's range of 9.0 per cent and 14 per cent indicating slightly higher pressure on liquidity, they said.
The call rate, however, rose above the main trend due to borrowing of cash by some banks and financial institutions at high rates from inter-bank market to meet urgent needs of their clients in stray deals, fund managers said.
The pressure on liquidity will start easing when the cash drained out ahead of Eid festival returns back into the banking channel, they said.
The central bank injected fresh cash amounting to Tk 34.16 billion through repo auctions at an annual interest rate of 8.75 per cent.
The central bank, on the other hand, withdrew Tk 3.05 billion through reverse repo auctions at an annual interest rate of 6.75 per cent. Besides, the government borrowed Tk 5.0 billion through auctions of treasury bills. The withdrawals put pressure on liquidity, they added.
The dollar was stable against taka in the inter-bank market due to increased supply of the greenback. The exchange rate of the greenback stood at Tk 68.88 maintaining previous trading day's range.
The greenback also remained mostly steady in public deals and the cash dollar was transacted at rates varying between Tk 67.85 and Tk 70.85 repeating previous trading day's range.
In the informal market, the dollar was mostly steady and it was traded mainly at rates varying between Tk 68.30 and Tk 68.60 against previous day's range of between Tk 68.20 and Tk 68.60. The informal market experienced higher inflow of the foreign currency, money dealers said.
The exchange rate of the Indian rupee against the taka fluctuated between Tk 1.3974 and Tk 1.4007.
In the regional market, most currencies were steady. The exchange rate of the dollar against the Indian rupee moved between Rs 48.71 and Rs 48.74 and the Pakistani rupee between Rs 78.62 and Rs 79.00. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.5825 ringgit and 3.5850 ringgit and that against the Thai currency between 35.19 baht and 35.32 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied between 91.25 yen and 91.28 yen.
The inter-bank call money rate remained steady at previous high Sunday with injection of fresh cash through repurchase agreement (repo). The market continued facing liquidity constraints due to withdrawal of cash through treasury bills and reverse repo auctions. The US dollar was also stable against Bangladesh taka (BDT) in the inter-bank foreign exchange market because of buying pressures, fund managers said.
The call rate in extreme range fluctuated mainly between 8.50 per cent and 20.0 per cent repeating previous trading day's range.
Most deals were, however, transacted at rates varying between 10.0 per cent and 15 per cent against previous day's range of 9.0 per cent and 14 per cent indicating slightly higher pressure on liquidity, they said.
The call rate, however, rose above the main trend due to borrowing of cash by some banks and financial institutions at high rates from inter-bank market to meet urgent needs of their clients in stray deals, fund managers said.
The pressure on liquidity will start easing when the cash drained out ahead of Eid festival returns back into the banking channel, they said.
The central bank injected fresh cash amounting to Tk 34.16 billion through repo auctions at an annual interest rate of 8.75 per cent.
The central bank, on the other hand, withdrew Tk 3.05 billion through reverse repo auctions at an annual interest rate of 6.75 per cent. Besides, the government borrowed Tk 5.0 billion through auctions of treasury bills. The withdrawals put pressure on liquidity, they added.
The dollar was stable against taka in the inter-bank market due to increased supply of the greenback. The exchange rate of the greenback stood at Tk 68.88 maintaining previous trading day's range.
The greenback also remained mostly steady in public deals and the cash dollar was transacted at rates varying between Tk 67.85 and Tk 70.85 repeating previous trading day's range.
In the informal market, the dollar was mostly steady and it was traded mainly at rates varying between Tk 68.30 and Tk 68.60 against previous day's range of between Tk 68.20 and Tk 68.60. The informal market experienced higher inflow of the foreign currency, money dealers said.
The exchange rate of the Indian rupee against the taka fluctuated between Tk 1.3974 and Tk 1.4007.
In the regional market, most currencies were steady. The exchange rate of the dollar against the Indian rupee moved between Rs 48.71 and Rs 48.74 and the Pakistani rupee between Rs 78.62 and Rs 79.00. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.5825 ringgit and 3.5850 ringgit and that against the Thai currency between 35.19 baht and 35.32 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied between 91.25 yen and 91.28 yen.