Call rate eases, dollar remains steady
Tuesday, 14 October 2008
FE Report
The inter-bank call money rate slightly eased Monday despite withdrawal of cash, as the market experienced sufficient liquidity. The US dollar maintained steady tone against Bangladesh taka (BDT) in the inter-bank foreign exchange market mainly because of adequate flow of the greenback, fund managers said.
The call rate moved mainly between 6.0 per cent and 12.0 per cent against previous day's range of between 6.50 per cent and 12.0 per cent.
Most transactions were, however, made at rates varying between 7.0 per cent and 8.0 per cent against previous day's range of 7.0 per cent and 8.50 per cent indicating moderate pressure on liquidity.
The borrowing of cash from inter-bank market at high rates by some banks and financial institutions in stray deals to meet urgent needs of their clients raised the call rate above main trend, fund managers said.
The central bank withdrew Tk 5.80 billion through reverse repurchase agreement (repo) at an annual interest rate of 6.50 per cent putting negligible pressure on liquidity.
The dollar was steady against taka in spite of strong demand and the exchange rate of the greenback stood at Tk 68.52 maintaining previous trading day's rate in the inter-bank market.
The market was active due to beginning of trading in the international market.
The dollar, however, appeared slightly stronger in public deals and the cash dollar was transacted at rates varying between Tk 67.47 and Tk 69.90 against previous trading day's range of between Tk 67.47 and Tk 69.85.
In the informal market, the dollar, however, was mostly steady and it was traded mainly at rates varying between Tk 71.10 and Tk 71.35 against previous day's range of between Tk 71.10 and Tk 71.30. The informal market experienced higher demand for the 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 13, 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 slightly eased Monday despite withdrawal of cash, as the market experienced sufficient liquidity. The US dollar maintained steady tone against Bangladesh taka (BDT) in the inter-bank foreign exchange market mainly because of adequate flow of the greenback, fund managers said.
The call rate moved mainly between 6.0 per cent and 12.0 per cent against previous day's range of between 6.50 per cent and 12.0 per cent.
Most transactions were, however, made at rates varying between 7.0 per cent and 8.0 per cent against previous day's range of 7.0 per cent and 8.50 per cent indicating moderate pressure on liquidity.
The borrowing of cash from inter-bank market at high rates by some banks and financial institutions in stray deals to meet urgent needs of their clients raised the call rate above main trend, fund managers said.
The central bank withdrew Tk 5.80 billion through reverse repurchase agreement (repo) at an annual interest rate of 6.50 per cent putting negligible pressure on liquidity.
The dollar was steady against taka in spite of strong demand and the exchange rate of the greenback stood at Tk 68.52 maintaining previous trading day's rate in the inter-bank market.
The market was active due to beginning of trading in the international market.
The dollar, however, appeared slightly stronger in public deals and the cash dollar was transacted at rates varying between Tk 67.47 and Tk 69.90 against previous trading day's range of between Tk 67.47 and Tk 69.85.
In the informal market, the dollar, however, was mostly steady and it was traded mainly at rates varying between Tk 71.10 and Tk 71.35 against previous day's range of between Tk 71.10 and Tk 71.30. The informal market experienced higher demand for the 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 13, 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.