Call rate steady, dollar gains ground
Wednesday, 9 April 2008
FE Report
The inter-bank call money rate remained steady Tuesday due to injection of fresh cash in a tight market. The US dollar, however, gained ground against Bangladesh taka (BDT) in the inter-bank foreign exchange market because of higher demand for the greenback, fund managers said.
The call rate in extreme range moved between 8.00 per cent and 20.00 per cent that coincided with previous day's range.
In most deals, the rate, however, moved between 12.00 per cent and 20.00 per cent against previous day's range of between 10.00 per cent and 15.00 per cent reflecting stronger pressure on liquidity.
The central bank injectioned large amount of fresh cash into the market through repurchase agreement (repo) that prevented the call rate from moving upward, fund managers said.
Most banks and financial institutions had to borrow cash from the interbank market at high rates to meet urgent requirements of the clients, they said.
The central bank injected Tk 31.435 billion, including Tk 26.18 billion devolved to primary dealers as liquidity support, holding repo auctions at an annual interest rate of 8.50 per cent.
It, on the other hand, withdrew Tk 1.00 billion against 15-year Bangladesh Government Treasury bonds at an interest rate of 12.22 per cent putting insignificant impact on the market.
The inter-bank call money rate remained steady Tuesday due to injection of fresh cash in a tight market. The US dollar, however, gained ground against Bangladesh taka (BDT) in the inter-bank foreign exchange market because of higher demand for the greenback, fund managers said.
The call rate in extreme range moved between 8.00 per cent and 20.00 per cent that coincided with previous day's range.
In most deals, the rate, however, moved between 12.00 per cent and 20.00 per cent against previous day's range of between 10.00 per cent and 15.00 per cent reflecting stronger pressure on liquidity.
The central bank injectioned large amount of fresh cash into the market through repurchase agreement (repo) that prevented the call rate from moving upward, fund managers said.
Most banks and financial institutions had to borrow cash from the interbank market at high rates to meet urgent requirements of the clients, they said.
The central bank injected Tk 31.435 billion, including Tk 26.18 billion devolved to primary dealers as liquidity support, holding repo auctions at an annual interest rate of 8.50 per cent.
It, on the other hand, withdrew Tk 1.00 billion against 15-year Bangladesh Government Treasury bonds at an interest rate of 12.22 per cent putting insignificant impact on the market.