Call rate continues to maintain upward trend
Tuesday, 15 September 2009
FE Report
The inter-bank call money rate continued to maintain an upward trend Monday ahead of the Eid-ul-Fitr festival, treasury officials said.
The call rate ranged between 3.00 per cent and 7.50 per cent on the day against the previous range between 3.00 per cent and 7.25 per cent. However, most of the deals were settled at rates varying between 4.00 per cent and 5.50 per cent, the market operators said.
"The call money rate moved up slightly on the day despite injection of fresh funds amounting to around Tk 2.214 billion by the central bank through purchasing US dollar from the banks," a senior treasury official of a commercial bank told the FE.
He also said the short-term borrowings normally increase before the Eid festival to meet the growing demand from bank clients.
The Bangladesh Bank (BB) bought US$29.50 million from different commercial banks at market rate Monday aiming to keep the inter-bank foreign exchange market stable.
"We've purchased US dollars from the commercial banks at market rate to help the banks comply with the net open position (NOP) rules on maintaining the foreign currency fund," a BB senior official told the FE.
The central bank continues its intervention in the inter-bank foreign exchange market through buying the US currency from the commercial banks directly aiming to keep the market stable.
A total of $1.232 billion was bought from the commercial banks until September 14 last as part of the move.
The inter-bank call money rate continued to maintain an upward trend Monday ahead of the Eid-ul-Fitr festival, treasury officials said.
The call rate ranged between 3.00 per cent and 7.50 per cent on the day against the previous range between 3.00 per cent and 7.25 per cent. However, most of the deals were settled at rates varying between 4.00 per cent and 5.50 per cent, the market operators said.
"The call money rate moved up slightly on the day despite injection of fresh funds amounting to around Tk 2.214 billion by the central bank through purchasing US dollar from the banks," a senior treasury official of a commercial bank told the FE.
He also said the short-term borrowings normally increase before the Eid festival to meet the growing demand from bank clients.
The Bangladesh Bank (BB) bought US$29.50 million from different commercial banks at market rate Monday aiming to keep the inter-bank foreign exchange market stable.
"We've purchased US dollars from the commercial banks at market rate to help the banks comply with the net open position (NOP) rules on maintaining the foreign currency fund," a BB senior official told the FE.
The central bank continues its intervention in the inter-bank foreign exchange market through buying the US currency from the commercial banks directly aiming to keep the market stable.
A total of $1.232 billion was bought from the commercial banks until September 14 last as part of the move.