Call rate, dollar lose grounds
Friday, 26 September 2008
FE Report
The inter-bank call money rate eased slightly Thursday despite withdrawal of cash through reverse repurchase agreement (repo). The US dollar also lost ground against Bangladesh taka (BDT) in the inter-bank foreign exchange market due to moderate demand for the greenback, fund managers said.
The call rate mainly moved between 7.25 per cent and 12.00 per cent against previous day's range of 7.75 per cent and 12.00 per cent.
Most transactions were, however, made at rates varying between 7.50 per cent and 9.00 per cent against previous day's range of 8.00 per cent and 9.00 per cent reflecting steady pressure on liquidity.
The call rate, however, moved above normal level in stray deals due to borrowing of cash by some banks and financial institutions from the inter-bank market at high rates to meet urgent needs of their clients, fund managers said.
The government borrowed Tk 4.00 billion through treasury bills on the day without putting any impact on liquidity.
The central bank, on the other hand, injected fresh cash of Tk 1.00 billion through repurchase agreement (repo) at an annual interest rate of 8.75 per cent to provide liquidity support.
The dollar eased nominally against taka and the exchange rate of the greenback moved between Tk 68.50 and Tk 68.52 against previous trading day's range of between Tk 68.51 and Tk 68.52 in the inter-bank market.
The dollar also fell in public deals and the cash dollar was transacted at rates varying between Tk 67.42 and Tk 69.75 against previous trading day's range of between Tk 67.42 and Tk 69.80.
In the informal market, the dollar was mostly steady and it was mainly traded at rates varying between Tk 70.00 and Tk 70.35 against previous day's range of between Tk 70.00 and Tk 70.30. The informal market experienced slightly higher demand for the foreign currency on the day, money dealers said.
The exchange rate of the Indian rupee against the taka continued to fluctuate between Tk 1.56 and Tk 1.77.
In the regional market, most currencies were steady. The exchange rate of the dollar against the Indian rupee moved between Rs 46.25 and Rs 46.33 and the Pakistani rupee between Rs 78.12 and Rs 78.50.As on September 25, 2008, the London Inter-bank Offered Rates (LIBO0R) against the US dollar were 3.42880 per cent for one month, 3.47630 per cent for three months, 3.70130 per cent for six months and 3.75750 per cent for twelve months.
The inter-bank call money rate eased slightly Thursday despite withdrawal of cash through reverse repurchase agreement (repo). The US dollar also lost ground against Bangladesh taka (BDT) in the inter-bank foreign exchange market due to moderate demand for the greenback, fund managers said.
The call rate mainly moved between 7.25 per cent and 12.00 per cent against previous day's range of 7.75 per cent and 12.00 per cent.
Most transactions were, however, made at rates varying between 7.50 per cent and 9.00 per cent against previous day's range of 8.00 per cent and 9.00 per cent reflecting steady pressure on liquidity.
The call rate, however, moved above normal level in stray deals due to borrowing of cash by some banks and financial institutions from the inter-bank market at high rates to meet urgent needs of their clients, fund managers said.
The government borrowed Tk 4.00 billion through treasury bills on the day without putting any impact on liquidity.
The central bank, on the other hand, injected fresh cash of Tk 1.00 billion through repurchase agreement (repo) at an annual interest rate of 8.75 per cent to provide liquidity support.
The dollar eased nominally against taka and the exchange rate of the greenback moved between Tk 68.50 and Tk 68.52 against previous trading day's range of between Tk 68.51 and Tk 68.52 in the inter-bank market.
The dollar also fell in public deals and the cash dollar was transacted at rates varying between Tk 67.42 and Tk 69.75 against previous trading day's range of between Tk 67.42 and Tk 69.80.
In the informal market, the dollar was mostly steady and it was mainly traded at rates varying between Tk 70.00 and Tk 70.35 against previous day's range of between Tk 70.00 and Tk 70.30. The informal market experienced slightly higher demand for the foreign currency on the day, money dealers said.
The exchange rate of the Indian rupee against the taka continued to fluctuate between Tk 1.56 and Tk 1.77.
In the regional market, most currencies were steady. The exchange rate of the dollar against the Indian rupee moved between Rs 46.25 and Rs 46.33 and the Pakistani rupee between Rs 78.12 and Rs 78.50.As on September 25, 2008, the London Inter-bank Offered Rates (LIBO0R) against the US dollar were 3.42880 per cent for one month, 3.47630 per cent for three months, 3.70130 per cent for six months and 3.75750 per cent for twelve months.