Call rate gains ground, dollar steady
Friday, 25 January 2008
FE Report
The inter-bank call money rate gained ground Thursday despite injection of fresh cash into the market through repurchase agreement tool of the central bank, fund managers said.
The rate in extreme fluctuations moved between 8.00 per cent and 20.00 per cent against previous day's range of between 7.00 per cent and 20.00 per cent. Most deals were, however, made at rates varying between 8.00 per cent and 12.00 per cent against previous day's 7.00 per cent and 12.00 per cent indicating improved liquidity, they said.
The market continued to face cash shortage due to delay in return of fund that went out of the banking channel earlier. Most of the banks remained reluctant to provide cash to inter-bank transactions, they added.
The call money lenders charged high rates, as some commercial banks and financial institutions were in need of borrowing cash to meet urgent requirements of their clients, fund managers said.
The central bank injected fresh cash of Tk 12.065 billion through repo auction at an annual interest rate of 8.50 per cent as liquidity support facility to the primary dealer for improving the liquidity position, they said.
The US dollar, however, remained steady against Bangladesh taka (BDT) in the inter-bank foreign exchange market although the demand for the greenback was strong.
The inter-bank call money rate gained ground Thursday despite injection of fresh cash into the market through repurchase agreement tool of the central bank, fund managers said.
The rate in extreme fluctuations moved between 8.00 per cent and 20.00 per cent against previous day's range of between 7.00 per cent and 20.00 per cent. Most deals were, however, made at rates varying between 8.00 per cent and 12.00 per cent against previous day's 7.00 per cent and 12.00 per cent indicating improved liquidity, they said.
The market continued to face cash shortage due to delay in return of fund that went out of the banking channel earlier. Most of the banks remained reluctant to provide cash to inter-bank transactions, they added.
The call money lenders charged high rates, as some commercial banks and financial institutions were in need of borrowing cash to meet urgent requirements of their clients, fund managers said.
The central bank injected fresh cash of Tk 12.065 billion through repo auction at an annual interest rate of 8.50 per cent as liquidity support facility to the primary dealer for improving the liquidity position, they said.
The US dollar, however, remained steady against Bangladesh taka (BDT) in the inter-bank foreign exchange market although the demand for the greenback was strong.