Call rate, dollar retain strengths
Thursday, 4 December 2008
FE Report
The inter-bank call money rate gained ground Wednesday although the central bank injected fresh cash through repurchase agreement (repo), as demand for cash increased ahead of holy Eid-ul Azha. The US dollar raised its lower edge against Bangladesh taka (BDT) in the inter-bank foreign exchange market due to higher demand for the greenback, fund managers said.
The call rate in extreme range fluctuated mainly between 7.90 per cent and 12.00 per cent against previous day's range of between 7.25 per cent and 12.50 per cent.
Most deals were, however, transacted at rates varying between 8.00 per cent and 10.00 per cent against previous day's range of 7.50 per cent and 9.50 per cent indicating increased pressure on liquidity, they said.
The call rate, however, moved above normal level in stray deals with borrowing of cash by some banks and financial institutions at high rates from inter-bank market to meet urgent needs of their clients, fund managers said.
The central bank injected fresh cash amounting to Tk 29.137 billion, including Tk 2.83 billion provided to dealer banks as liquidity support at an annual interest rate of 8.75 per cent.
The dollar gained against taka in the inter-bank market due to higher demand for the foreign currency emanated from increased import payment obligations. The exchange rate of the greenback varied between Tk 68.87 and Tk 68.88 against previous trading day's range of between Tk 68.85 and Tk 68.88.
The rising inward remittance helped maintaining steady supply of the greenback, fund managers said.
The greenback, however, remained mostly steady in public deals and the cash dollar was transacted at rates varying between Tk 67.87 and Tk 70.85 against previous trading day's range of Tk 67.85 and Tk 70.85.
In the informal market, the dollar gained and it was traded mainly at rates varying between Tk 68.40 and Tk 68.70 against previous day's range of between Tk 68.00 and Tk 68.40. The informal market experienced higher demand for the foreign currency on the day, money dealers said.
The exchange rate of the Indian rupee against the taka fluctuated between Tk 1.3792 and Tk 1.3820.
The inter-bank call money rate gained ground Wednesday although the central bank injected fresh cash through repurchase agreement (repo), as demand for cash increased ahead of holy Eid-ul Azha. The US dollar raised its lower edge against Bangladesh taka (BDT) in the inter-bank foreign exchange market due to higher demand for the greenback, fund managers said.
The call rate in extreme range fluctuated mainly between 7.90 per cent and 12.00 per cent against previous day's range of between 7.25 per cent and 12.50 per cent.
Most deals were, however, transacted at rates varying between 8.00 per cent and 10.00 per cent against previous day's range of 7.50 per cent and 9.50 per cent indicating increased pressure on liquidity, they said.
The call rate, however, moved above normal level in stray deals with borrowing of cash by some banks and financial institutions at high rates from inter-bank market to meet urgent needs of their clients, fund managers said.
The central bank injected fresh cash amounting to Tk 29.137 billion, including Tk 2.83 billion provided to dealer banks as liquidity support at an annual interest rate of 8.75 per cent.
The dollar gained against taka in the inter-bank market due to higher demand for the foreign currency emanated from increased import payment obligations. The exchange rate of the greenback varied between Tk 68.87 and Tk 68.88 against previous trading day's range of between Tk 68.85 and Tk 68.88.
The rising inward remittance helped maintaining steady supply of the greenback, fund managers said.
The greenback, however, remained mostly steady in public deals and the cash dollar was transacted at rates varying between Tk 67.87 and Tk 70.85 against previous trading day's range of Tk 67.85 and Tk 70.85.
In the informal market, the dollar gained and it was traded mainly at rates varying between Tk 68.40 and Tk 68.70 against previous day's range of between Tk 68.00 and Tk 68.40. The informal market experienced higher demand for the foreign currency on the day, money dealers said.
The exchange rate of the Indian rupee against the taka fluctuated between Tk 1.3792 and Tk 1.3820.