Call rate eases, dollar on steady track
FE Report | Wednesday, 18 June 2008
The inter-bank call money rate slightly eased Tuesday due to injection of fresh cash into the market. The US dollar, however, was steady against Bangladesh taka (BDT) in the inter-bank foreign exchange with moderate demand for the greenback, fund managers said.
The call rate in extreme range moved between 8.00 per cent and 15.75 per cent against previous day's range of 8.00 per cent and 15.00 per cent.
Most deals were, however, transacted at rates between 9.00 per cent and 10.00 per cent against previous day's range of between 9.00 per cent and 11.00 per cent indicating easing pressure on liquidity.
The central bank injected Tk 14.655 billion, including Tk 9.79 billion devolved to primary dealers for liquidity support, through repurchase agreement (repo) auctions at an annual interest rate of 8.50 per cent.
It, however, withdrew Tk 4.00 billion, including Tk 1.12 billion devolved to primary dealers, through Five-year Bangladesh Government Treasury Bonds at an interest rate of 10.60 per cent per annum.
In addition, the central bank withdrew Tk 1.72 billion through reverse repo at an annual interest rate of 6.50 per cent that created some pressure on liquidity, fund managers said.
Some banks and financial institutions borrowed cash at high rates from the inter-bank market to meet urgent needs of their clients raising the call rate above normal level in stray deals, sources said.
The dollar was mostly stable against taka in the inter-bank foreign exchange market, fund managers said.
The exchange rate of the dollar moved between Tk 68.50 and Tk 68.53 maintaining previous trading day's range in the inter-bank market.
The dollar, however, appeared slightly stronger in public deals and the cash dollar was transacted at rates varying between Tk 67.25 and Tk 69.80 against previous trading day's range of between Tk 67.25 and Tk 69.75.
In the informal market, the dollar was steady and it was traded at rates varying between Tk 69.60 and Tk 70.00 against previous day's range of between Tk 69.50 and Tk 70.00. 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 1.56 and Tk 1.77.
The call rate in extreme range moved between 8.00 per cent and 15.75 per cent against previous day's range of 8.00 per cent and 15.00 per cent.
Most deals were, however, transacted at rates between 9.00 per cent and 10.00 per cent against previous day's range of between 9.00 per cent and 11.00 per cent indicating easing pressure on liquidity.
The central bank injected Tk 14.655 billion, including Tk 9.79 billion devolved to primary dealers for liquidity support, through repurchase agreement (repo) auctions at an annual interest rate of 8.50 per cent.
It, however, withdrew Tk 4.00 billion, including Tk 1.12 billion devolved to primary dealers, through Five-year Bangladesh Government Treasury Bonds at an interest rate of 10.60 per cent per annum.
In addition, the central bank withdrew Tk 1.72 billion through reverse repo at an annual interest rate of 6.50 per cent that created some pressure on liquidity, fund managers said.
Some banks and financial institutions borrowed cash at high rates from the inter-bank market to meet urgent needs of their clients raising the call rate above normal level in stray deals, sources said.
The dollar was mostly stable against taka in the inter-bank foreign exchange market, fund managers said.
The exchange rate of the dollar moved between Tk 68.50 and Tk 68.53 maintaining previous trading day's range in the inter-bank market.
The dollar, however, appeared slightly stronger in public deals and the cash dollar was transacted at rates varying between Tk 67.25 and Tk 69.80 against previous trading day's range of between Tk 67.25 and Tk 69.75.
In the informal market, the dollar was steady and it was traded at rates varying between Tk 69.60 and Tk 70.00 against previous day's range of between Tk 69.50 and Tk 70.00. 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 1.56 and Tk 1.77.