Call rate jumps up, dollar slips
Tuesday, 18 December 2007
FE Report
The inter-bank call money rate posted sharp rise Monday indicating high pressure on liquidity due to festival withdrawals. The rate rose to its peak at 16.00 per cent against previous day's high at 14.00 per cent in an active market, fund managers said.
Injection of fresh cash was ineffective to calm the market, they said.
The US dollar, on the other hand, slipped significantly and its lowest edge stood at Tk 68.55 from that of previous day's Tk 68.60.
The commercial banks faced strong demand of mainly retail clients for withdrawal of cash through the transaction hours and some bank branches had to keep customers waiting for collecting cash from the relevant sources, banking sector sources said.
Banks might experience further pressure on liquidity with disbursement of cash to tanners ahead of Eid vacation for buying hides and skins, they said.
The call rate in its extreme range moved between 8.00 per cent and 16.00 per cent against previous day's range of between 7.45 per cent and 14.00 per cent, fund managers said.
In most deals, the rates, however, moved between 9.0 per cent and 14.00 per cent against previous day's range of between 8.0 per cent and 12.00 per cent in the inter-bank market, they added.
The market appeared volatile since the concluding days of last week and it maintained the momentum Monday due to swelling business activities ahead of Eid festival, fund managers said, they said.
Some of the banks and non-banking financial institutions had to borrow cash at high rates from the inter-bank market to meet immediate requirements of their clients that resulted in rising call rate, fund managers said.
The central bank injected Tk 3.08 billion through reverse repurchase (repo) tool at an annual interest rate of 6.50 per cent to bring back stability in the market. It was, however, unable to maintain balance between the demand and the supply, they said.
The US dollar was, however, fell evidently against the Bangladesh taka (BDT) on the day in the inter-bank foreign exchange market due to limited transactions of the greenback, fund managers said.
The exchange rate of the dollar varied between Tk 68.55 and Tk 68.61 against the previous day's range of between Tk 68.60 and Tk 68.61 in the inter-bank foreign exchange market.
The greenback, however, maintained its stable nerve in public deals and the cash dollar was exchanged at rates varying between Tk 67.45 and Tk 69.75 bending to previous day's range.
In the informal market, the dollar dropped significantly and it was traded at rates ranging between Tk 67.30 and Tk 67.60 against the previous day's range of between Tk 68.00 and Tk 68.30. The informal market experienced steady demand for the dollar 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.
In the regional market, the exchange rate of the dollar against the Indian rupee moved between Rs 39.13 and Rs 39.17 and the Pakistani rupee between Rs 60.99 and Rs 61.01. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.3290 ringgit and 3.3320 ringgit, and that against the Thai currency between 33.62 baht and 33.63 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied between 113.32 yen and 113.35 yen, while the euro moved between 1.4393 dollar and 1.4394 dollar against the greenback.
As on December 17, the London Inter-bank Offered Rates (LIBOR) against the US dollar were 4.99630 per cent for one month, 4.96630 per cent for three months, 4.84880 per cent for six months, 4.84880 per cent for nine months and 4.50188 per cent for twelve months.
The inter-bank call money rate posted sharp rise Monday indicating high pressure on liquidity due to festival withdrawals. The rate rose to its peak at 16.00 per cent against previous day's high at 14.00 per cent in an active market, fund managers said.
Injection of fresh cash was ineffective to calm the market, they said.
The US dollar, on the other hand, slipped significantly and its lowest edge stood at Tk 68.55 from that of previous day's Tk 68.60.
The commercial banks faced strong demand of mainly retail clients for withdrawal of cash through the transaction hours and some bank branches had to keep customers waiting for collecting cash from the relevant sources, banking sector sources said.
Banks might experience further pressure on liquidity with disbursement of cash to tanners ahead of Eid vacation for buying hides and skins, they said.
The call rate in its extreme range moved between 8.00 per cent and 16.00 per cent against previous day's range of between 7.45 per cent and 14.00 per cent, fund managers said.
In most deals, the rates, however, moved between 9.0 per cent and 14.00 per cent against previous day's range of between 8.0 per cent and 12.00 per cent in the inter-bank market, they added.
The market appeared volatile since the concluding days of last week and it maintained the momentum Monday due to swelling business activities ahead of Eid festival, fund managers said, they said.
Some of the banks and non-banking financial institutions had to borrow cash at high rates from the inter-bank market to meet immediate requirements of their clients that resulted in rising call rate, fund managers said.
The central bank injected Tk 3.08 billion through reverse repurchase (repo) tool at an annual interest rate of 6.50 per cent to bring back stability in the market. It was, however, unable to maintain balance between the demand and the supply, they said.
The US dollar was, however, fell evidently against the Bangladesh taka (BDT) on the day in the inter-bank foreign exchange market due to limited transactions of the greenback, fund managers said.
The exchange rate of the dollar varied between Tk 68.55 and Tk 68.61 against the previous day's range of between Tk 68.60 and Tk 68.61 in the inter-bank foreign exchange market.
The greenback, however, maintained its stable nerve in public deals and the cash dollar was exchanged at rates varying between Tk 67.45 and Tk 69.75 bending to previous day's range.
In the informal market, the dollar dropped significantly and it was traded at rates ranging between Tk 67.30 and Tk 67.60 against the previous day's range of between Tk 68.00 and Tk 68.30. The informal market experienced steady demand for the dollar 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.
In the regional market, the exchange rate of the dollar against the Indian rupee moved between Rs 39.13 and Rs 39.17 and the Pakistani rupee between Rs 60.99 and Rs 61.01. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.3290 ringgit and 3.3320 ringgit, and that against the Thai currency between 33.62 baht and 33.63 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied between 113.32 yen and 113.35 yen, while the euro moved between 1.4393 dollar and 1.4394 dollar against the greenback.
As on December 17, the London Inter-bank Offered Rates (LIBOR) against the US dollar were 4.99630 per cent for one month, 4.96630 per cent for three months, 4.84880 per cent for six months, 4.84880 per cent for nine months and 4.50188 per cent for twelve months.