Call rate steady, dollar weakens
FE Report | Wednesday, 4 June 2008
The inter-bank call money rate moved on steady track Tuesday despite injection of large amount of fresh cash into the market. The US dollar, however, lost ground against Bangladesh taka (BDT) in the inter-bank foreign exchange market on moderate demand for the greenback, fund managers said.
The call rate in extreme range moved between 7.50 per cent and 17.50 per cent maintaining previous day's range.
Most deals were, however, made at rates between 8.00 per cent and 10.00 per cent against previous day's range of between 10.00 per cent and 15.00 per cent that reflected decline in pressure on liquidity.
The market experienced strong demand for cash and some banks and financial institutions had to borrow fund from the inter-bank market at high rate deals to meet urgent demands of their clients. It raised the call rate above normal level in stray deals, sources said.
The central bank injected freesh cash of Tk 19.02 billion, including Tk 14.03 billion as liquidity support to primary dealers, into the market through repurchase agreement (repo) auctions at an interest rate of 8.50 per cent per annum. It eased pressure on liquidity and prevented the call rate from further upward move, fund managers said.
The central bank also refrained from accepting reverse repo worth Tk 2.20 billion to provide liquidity support. But it withdrew Tk 4.00 billion, including Tk 2.492 billion devolved to primary dealers, against Bangladesh Government Treasury bonds, as felt suitable for maintaining demand-supply balance, they said.
The dollar fell slightly against taka in the inter-bank foreign exchange market because of lower import obligations, fund managers said.
The exchange rate of the dollar moved between Tk 68.50 and Tk 68.53 against previous trading day's range of between Tk 68.51 and Tk 68.53 in the inter-bank market.
The dollar, however, gained in public deals and the cash dollar was transacted at rates varying between Tk 67.25 and Tk 69.90 against previous day's range of between Tk 67.25 and Tk 69.80.
In the informal market, the dollar was mostly steady and it was traded at rates varying between Tk 69.40 and Tk 69.90 against previous day's range of between Tk 69.40 and Tk 69.80. The informal market experienced moderate demand for the foreign currency 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.
The call rate in extreme range moved between 7.50 per cent and 17.50 per cent maintaining previous day's range.
Most deals were, however, made at rates between 8.00 per cent and 10.00 per cent against previous day's range of between 10.00 per cent and 15.00 per cent that reflected decline in pressure on liquidity.
The market experienced strong demand for cash and some banks and financial institutions had to borrow fund from the inter-bank market at high rate deals to meet urgent demands of their clients. It raised the call rate above normal level in stray deals, sources said.
The central bank injected freesh cash of Tk 19.02 billion, including Tk 14.03 billion as liquidity support to primary dealers, into the market through repurchase agreement (repo) auctions at an interest rate of 8.50 per cent per annum. It eased pressure on liquidity and prevented the call rate from further upward move, fund managers said.
The central bank also refrained from accepting reverse repo worth Tk 2.20 billion to provide liquidity support. But it withdrew Tk 4.00 billion, including Tk 2.492 billion devolved to primary dealers, against Bangladesh Government Treasury bonds, as felt suitable for maintaining demand-supply balance, they said.
The dollar fell slightly against taka in the inter-bank foreign exchange market because of lower import obligations, fund managers said.
The exchange rate of the dollar moved between Tk 68.50 and Tk 68.53 against previous trading day's range of between Tk 68.51 and Tk 68.53 in the inter-bank market.
The dollar, however, gained in public deals and the cash dollar was transacted at rates varying between Tk 67.25 and Tk 69.90 against previous day's range of between Tk 67.25 and Tk 69.80.
In the informal market, the dollar was mostly steady and it was traded at rates varying between Tk 69.40 and Tk 69.90 against previous day's range of between Tk 69.40 and Tk 69.80. The informal market experienced moderate demand for the foreign currency 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.