Call rate gains ground, dollar remains stable
Monday, 8 December 2008
FE Report
The inter-bank call money rate maintained steady level Sunday despite higher demand for cash, as the pressure on liquidity was reduced with injection of fresh fund through repurchase agreement (repo). The US dollar, however, remained stable against Bangladesh taka (BDT) in the inter-bank foreign exchange market due to increased supply of the greenback, fund managers said.
The demand for cash rose due to disbursement of cash for raw hides and skins trading.
The call rate in extreme range fluctuated mainly between 8.50 per cent and 12.0 per cent against previous day's range of between 7.50 per cent and 12.50 per cent.
Most deals were, however, transacted at rates varying between 8.75 per cent and 10.50 per cent against previous day's range of 8.0 per cent and 10.0 per cent indicating continuation of strong pressure on liquidity, they said.
The call rate rose above main trend due to borrowing of cash by some banks and financial institutions at high rates from inter-bank market to meet urgent needs of their clients in stray deals, fund managers said.
The central bank injected fresh cash amounting to Tk 45.675 billion against repo bids at an annual interest rate of 8.75 per cent. It eased pressure on liquidity establishing balance between the demand and the supply. It prevented the call rate from rising, they said.
The central bank, on the other hand, withdrew Tk 4.0 billion through routine auctions of treasury bills. It also withdrew Tk 1.50 billion against 15-year Bangladesh Government Treasury Bonds at an annual interest rate of 12.14 per cent putting negligible impact on the market, they added.
The dollar was unchanged against taka in the inter-bank market due to increased supply of the greenback. The exchange rate of the greenback stood at Tk 68.88 repeating previous trading day's range.
The greenback, however, remained mostly steady in public deals and the cash dollar was transacted at rates varying between Tk 67.85 and Tk 70.85 maintaining previous trading day's range.
In the informal market, the dollar remained steady and it was traded mainly at rates varying between Tk 68.30 and Tk 68.60 against previous day's range of between Tk 68.40 and Tk 68.60. The informal market experienced higher inflow of the foreign currency on the day, money dealers said.
The inter-bank call money rate maintained steady level Sunday despite higher demand for cash, as the pressure on liquidity was reduced with injection of fresh fund through repurchase agreement (repo). The US dollar, however, remained stable against Bangladesh taka (BDT) in the inter-bank foreign exchange market due to increased supply of the greenback, fund managers said.
The demand for cash rose due to disbursement of cash for raw hides and skins trading.
The call rate in extreme range fluctuated mainly between 8.50 per cent and 12.0 per cent against previous day's range of between 7.50 per cent and 12.50 per cent.
Most deals were, however, transacted at rates varying between 8.75 per cent and 10.50 per cent against previous day's range of 8.0 per cent and 10.0 per cent indicating continuation of strong pressure on liquidity, they said.
The call rate rose above main trend due to borrowing of cash by some banks and financial institutions at high rates from inter-bank market to meet urgent needs of their clients in stray deals, fund managers said.
The central bank injected fresh cash amounting to Tk 45.675 billion against repo bids at an annual interest rate of 8.75 per cent. It eased pressure on liquidity establishing balance between the demand and the supply. It prevented the call rate from rising, they said.
The central bank, on the other hand, withdrew Tk 4.0 billion through routine auctions of treasury bills. It also withdrew Tk 1.50 billion against 15-year Bangladesh Government Treasury Bonds at an annual interest rate of 12.14 per cent putting negligible impact on the market, they added.
The dollar was unchanged against taka in the inter-bank market due to increased supply of the greenback. The exchange rate of the greenback stood at Tk 68.88 repeating previous trading day's range.
The greenback, however, remained mostly steady in public deals and the cash dollar was transacted at rates varying between Tk 67.85 and Tk 70.85 maintaining previous trading day's range.
In the informal market, the dollar remained steady and it was traded mainly at rates varying between Tk 68.30 and Tk 68.60 against previous day's range of between Tk 68.40 and Tk 68.60. The informal market experienced higher inflow of the foreign currency on the day, money dealers said.