Call rate down, greenback steady
Wednesday, 15 October 2008
FE Report
The inter-bank call money rate fell Tuesday despite withdrawal of cash through bills and bonds. The US dollar, however, remained stable against Bangladesh taka (BDT) in the inter-bank foreign exchange market due to adequate supply of the greenback, fund managers said.
The call rate moved mainly between 6.00 per cent and 11.00 per cent against previous day's range of between 6.00 per cent and 12.00 per cent.
Most transactions were, however, made at rates varying between 7.00 per cent and 7.50 per cent against previous day's range of 7.00 per cent and 8.00 per cent that reflected lower pressure on liquidity.
The call rate, however, rose above main trend in stray deals with borrowing of cash by some banks and financial institutions from inter-bank market at high rates to meet urgent needs of their clients, fund managers said.
The central bank withdrew Tk 14.02 billion through reverse repurchase agreement (repo) at an annual interest rate of 6.50 per cent putting negligible pressure on liquidity.
It also withdrew Tk 1.50 billion, including Tk 356.50 million devolved to primary dealers, on the day through 15-year Bangladesh Government Treasury Bonds at an annual interest of 12.14 per cent.
The dollar, on the other hand, appeared steady against taka in the inter-bank market and the exchange rate of the greenback stood at Tk 68.52 maintaining previous trading day's rate.
The greenback, however, gained in public deals and the cash dollar was transacted at rates varying between Tk 67.50 and Tk 70.60 against previous trading day's range of between Tk 67.47 and Tk 69.90.
In the informal market, the dollar, appeared weaker and it was traded mainly at rates varying between Tk 70.10 and Tk 70.30 against previous day's range of between Tk 71.10 and Tk 71.30. The informal market experienced moderate 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.
As on October 14, 2008, the London Inter-bank Offered Rates (LIBOR) against the US dollar were 4.58750 per cent for one month, 4.81880 per cent for three months, 4.39380 per cent for six months and 4.16880 per cent for twelve months.
The inter-bank call money rate fell Tuesday despite withdrawal of cash through bills and bonds. The US dollar, however, remained stable against Bangladesh taka (BDT) in the inter-bank foreign exchange market due to adequate supply of the greenback, fund managers said.
The call rate moved mainly between 6.00 per cent and 11.00 per cent against previous day's range of between 6.00 per cent and 12.00 per cent.
Most transactions were, however, made at rates varying between 7.00 per cent and 7.50 per cent against previous day's range of 7.00 per cent and 8.00 per cent that reflected lower pressure on liquidity.
The call rate, however, rose above main trend in stray deals with borrowing of cash by some banks and financial institutions from inter-bank market at high rates to meet urgent needs of their clients, fund managers said.
The central bank withdrew Tk 14.02 billion through reverse repurchase agreement (repo) at an annual interest rate of 6.50 per cent putting negligible pressure on liquidity.
It also withdrew Tk 1.50 billion, including Tk 356.50 million devolved to primary dealers, on the day through 15-year Bangladesh Government Treasury Bonds at an annual interest of 12.14 per cent.
The dollar, on the other hand, appeared steady against taka in the inter-bank market and the exchange rate of the greenback stood at Tk 68.52 maintaining previous trading day's rate.
The greenback, however, gained in public deals and the cash dollar was transacted at rates varying between Tk 67.50 and Tk 70.60 against previous trading day's range of between Tk 67.47 and Tk 69.90.
In the informal market, the dollar, appeared weaker and it was traded mainly at rates varying between Tk 70.10 and Tk 70.30 against previous day's range of between Tk 71.10 and Tk 71.30. The informal market experienced moderate 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.
As on October 14, 2008, the London Inter-bank Offered Rates (LIBOR) against the US dollar were 4.58750 per cent for one month, 4.81880 per cent for three months, 4.39380 per cent for six months and 4.16880 per cent for twelve months.