Call rate eases, dollar gains ground
Wednesday, 24 September 2008
FE Report
The inter-bank call money rate eased slightly Tuesday despite withdrawal of a large amount of cash through reverse repurchase agreement (repo). The US dollar, on the other hand, gained ground against Bangladesh taka (BDT) in the inter-bank foreign exchange market due to adequate supply of the greenback, fund managers said.
The call rate mainly moved between 7.00 per cent and 13.00 per cent against previous day's range of 8.0 per cent and 16 per cent.
Most transactions, however, took place at rates varying between 7.50 per cent and 10 per cent against previous day's range of 9.0 per cent and 12 per cent indicating lower pressure on liquidity.
The call rate, however, rose above normal level in stray deals, as some banks and financial institutions borrowed cash from the inter-bank market at high rates to meet urgent needs of their clients, fund managers said.
The central bank withdrew Tk 10.50 billion through reverse repo at an interest rate of 6.50 per cent per annum.
Besides, it withdrew Tk 1.25 billion, including Tk 1.17 billion devolved to primary dealers, against the 20-Year Bangladesh Government Treasury Bonds at an annual interest rate of 13.07 per cent.
The central bank, on the other hand, injected fresh cash of Tk 3.50 billion through repurchase agreement (repo) at an annual interest rate of 8.75 per cent to provide liquidity support.
The dollar gained ground against taka and the exchange rate of the greenback moved between Tk 68.51 and Tk 68.52 against previous trading day's range of between Tk 68.50 and Tk 68.52 in the inter-bank market.
The dollar, however, fell in public deals and the cash dollar was transacted at rates varying between Tk 67.42 and Tk 69.80 against previous trading day's range of between Tk 67.47 and Tk 69.80.
In the informal market, the dollar was mostly steady and it was mainly traded at rates varying between Tk 70 and Tk 70.30 against previous day's range of between Tk 70.00 and Tk 70.25. The informal market experienced a 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 45.85 and Rs 45.86 and the Pakistani rupee between Rs 77.85 and Rs 78.20.
As on September 23, 2008, the London Inter-bank Offered Rates (LIBO0R) against the US dollar were 3.17620 per cent for one month, 3.19750 per cent for three months, 3.42870 per cent for six months, 3.47620 per cent for nine months and 3.512550 per cent for twelve months.
The inter-bank call money rate eased slightly Tuesday despite withdrawal of a large amount of cash through reverse repurchase agreement (repo). The US dollar, on the other hand, gained ground against Bangladesh taka (BDT) in the inter-bank foreign exchange market due to adequate supply of the greenback, fund managers said.
The call rate mainly moved between 7.00 per cent and 13.00 per cent against previous day's range of 8.0 per cent and 16 per cent.
Most transactions, however, took place at rates varying between 7.50 per cent and 10 per cent against previous day's range of 9.0 per cent and 12 per cent indicating lower pressure on liquidity.
The call rate, however, rose above normal level in stray deals, as some banks and financial institutions borrowed cash from the inter-bank market at high rates to meet urgent needs of their clients, fund managers said.
The central bank withdrew Tk 10.50 billion through reverse repo at an interest rate of 6.50 per cent per annum.
Besides, it withdrew Tk 1.25 billion, including Tk 1.17 billion devolved to primary dealers, against the 20-Year Bangladesh Government Treasury Bonds at an annual interest rate of 13.07 per cent.
The central bank, on the other hand, injected fresh cash of Tk 3.50 billion through repurchase agreement (repo) at an annual interest rate of 8.75 per cent to provide liquidity support.
The dollar gained ground against taka and the exchange rate of the greenback moved between Tk 68.51 and Tk 68.52 against previous trading day's range of between Tk 68.50 and Tk 68.52 in the inter-bank market.
The dollar, however, fell in public deals and the cash dollar was transacted at rates varying between Tk 67.42 and Tk 69.80 against previous trading day's range of between Tk 67.47 and Tk 69.80.
In the informal market, the dollar was mostly steady and it was mainly traded at rates varying between Tk 70 and Tk 70.30 against previous day's range of between Tk 70.00 and Tk 70.25. The informal market experienced a 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 45.85 and Rs 45.86 and the Pakistani rupee between Rs 77.85 and Rs 78.20.
As on September 23, 2008, the London Inter-bank Offered Rates (LIBO0R) against the US dollar were 3.17620 per cent for one month, 3.19750 per cent for three months, 3.42870 per cent for six months, 3.47620 per cent for nine months and 3.512550 per cent for twelve months.