Call rate marks sharp rise, dollar stable
Friday, 12 December 2008
FE Report
The inter-bank call money rate marked sharp rise Thursday on cash flow constraint in moderately active market and rose to its peak at 20.00 per cent despite injection of fresh cash. The US dollar, however, maintained its stable nerve against Bangladesh taka (BDT) in the inter-bank foreign exchange market due to ample supply of the greenback, fund managers said.
The call rate in extreme range fluctuated mainly between 8.50 per cent and 20.00 per cent against previous trading day's range of between 8.50 per cent and 12.00 per cent.
Most deals were, however, transacted at rates varying between 9.00 per cent and 14 per cent against previous day's range of 8.75 per cent and 10.50 per cent indicating visibly higher pressure on liquidity, they said.
The call rate moved above main trend with the 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 pressure on liquidity is likely to start easing from the middle of coming week with inflow of cash disbursed coming back to the banking channel, they said.
The central bank injected fresh cash amounting to Tk 4.292 billion against repurchase agreement (repo) at an annual interest rate of 8.75 per cent. It prevented the call rate from rising, they said.
The central bank, on the other hand, withdrew Tk 1.00 billion through reverse repo auctions at an annual interest rate of 6.75 per cent putting some impact on the market, they added.
The dollar remained unchanged against taka in the inter-bank market due to comfortable supply of the greenback. The exchange rate of the greenback stood at Tk 68.88 maintaining 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 repeating previous trading day's range.
In the informal market, the dollar was mostly steady and it was traded mainly at rates varying between Tk 68.20 and Tk 68.60 against previous day's range of between Tk 68.30 and Tk 68.60. The informal market experienced higher inflow of the foreign currency on the day, money dealers said.
The exchange rate of the Indian rupee against the taka fluctuated between Tk 1.4071 and Tk 1.4098.
In the regional market, most currencies were steady. The exchange rate of the dollar against the Indian rupee moved between Rs 48.41 and Rs 48.42 and the Pakistani rupee between Rs 78.65 and Rs 79.00. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.5605 ringgit and 3.5630 ringgit and that against the Thai currency between 35.10 baht and 35.15 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied between 91.48 yen and 91.51 yen, while the euro moved between 1.3213 dollar and 1.3214 dollar against the greenback.
As on December 11, 2008, the London Inter-bank Offered Rates (LIBO0R) against the US dollar were 1.43880 per cent for one month, 2.09880 per cent for three months, 2.43750 per cent for six months and 2.62250 per cent for twelve months.
The inter-bank call money rate marked sharp rise Thursday on cash flow constraint in moderately active market and rose to its peak at 20.00 per cent despite injection of fresh cash. The US dollar, however, maintained its stable nerve against Bangladesh taka (BDT) in the inter-bank foreign exchange market due to ample supply of the greenback, fund managers said.
The call rate in extreme range fluctuated mainly between 8.50 per cent and 20.00 per cent against previous trading day's range of between 8.50 per cent and 12.00 per cent.
Most deals were, however, transacted at rates varying between 9.00 per cent and 14 per cent against previous day's range of 8.75 per cent and 10.50 per cent indicating visibly higher pressure on liquidity, they said.
The call rate moved above main trend with the 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 pressure on liquidity is likely to start easing from the middle of coming week with inflow of cash disbursed coming back to the banking channel, they said.
The central bank injected fresh cash amounting to Tk 4.292 billion against repurchase agreement (repo) at an annual interest rate of 8.75 per cent. It prevented the call rate from rising, they said.
The central bank, on the other hand, withdrew Tk 1.00 billion through reverse repo auctions at an annual interest rate of 6.75 per cent putting some impact on the market, they added.
The dollar remained unchanged against taka in the inter-bank market due to comfortable supply of the greenback. The exchange rate of the greenback stood at Tk 68.88 maintaining 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 repeating previous trading day's range.
In the informal market, the dollar was mostly steady and it was traded mainly at rates varying between Tk 68.20 and Tk 68.60 against previous day's range of between Tk 68.30 and Tk 68.60. The informal market experienced higher inflow of the foreign currency on the day, money dealers said.
The exchange rate of the Indian rupee against the taka fluctuated between Tk 1.4071 and Tk 1.4098.
In the regional market, most currencies were steady. The exchange rate of the dollar against the Indian rupee moved between Rs 48.41 and Rs 48.42 and the Pakistani rupee between Rs 78.65 and Rs 79.00. Besides, the exchange rate of the dollar against the Malaysian ringgit varied between 3.5605 ringgit and 3.5630 ringgit and that against the Thai currency between 35.10 baht and 35.15 baht.
In the international market, the exchange rate of the dollar against the Japanese yen mainly varied between 91.48 yen and 91.51 yen, while the euro moved between 1.3213 dollar and 1.3214 dollar against the greenback.
As on December 11, 2008, the London Inter-bank Offered Rates (LIBO0R) against the US dollar were 1.43880 per cent for one month, 2.09880 per cent for three months, 2.43750 per cent for six months and 2.62250 per cent for twelve months.