Call rate sustains high level, dollar gains
Monday, 24 December 2007
FE Report
The inter-bank call money rate maintained its high level Sunday due to post-Eid time-lag in drawing cash in banking channel. The rate rose to its peak at 16.50 per cent against previous day's high of 17.00 per cent on the day, fund managers said.
The US dollar, on the other hand, posted gains on the day, as its upper edge rose to Tk 68.60 against previous trading day's high at Tk 68.50.
The massive withdrawal of cash from banks were yet to start returning back to the banking channel and it caused pressure on liquidity forcing the call rate to move mostly at its earlier level although the demand for cash was moderate, they said.
The call rate might continue its present level for a limited period in coming days waiting for re-channelling of cash into the banking system, they said.
The call rate in its extreme range moved between 7.50 per cent and 17.00 per cent against previous day's range of between 8.00 per cent and 17.00 per cent, fund managers said.
In most deals, the rates, however, moved between 10.00 per cent and 15.00 per cent against previous day's range of between 12.00 per cent and 16.00 per cent in the inter-bank market, they added.
The borrowing of cash by some banks and non-banking financial institutions from the inter-bank market at high rates kept the market active, fund managers said.
The US dollar, however, appeared gainer against the Bangladesh taka (BDT) on the day in the inter-bank foreign exchange market because of higher supply, fund managers said.
The exchange rate of the dollar varied between Tk 68.48 and Tk 68.60 against the previous day's range of between Tk 68.48 and Tk 68.50 in the inter-bank foreign exchange market.
The greenback remained steady in public deals and the cash dollar was exchanged at rates varying between Tk 67.48 and Tk 69.75 maintaining previous day's range.
In the informal market, the dollar was also steady and it was traded at rates ranging between Tk 67.20 and Tk 67.60 against the previous day's range of between Tk 67.20 and Tk 67.70. The informal market experienced steady demand for the dollar on the day, money dealers said.
The inter-bank call money rate maintained its high level Sunday due to post-Eid time-lag in drawing cash in banking channel. The rate rose to its peak at 16.50 per cent against previous day's high of 17.00 per cent on the day, fund managers said.
The US dollar, on the other hand, posted gains on the day, as its upper edge rose to Tk 68.60 against previous trading day's high at Tk 68.50.
The massive withdrawal of cash from banks were yet to start returning back to the banking channel and it caused pressure on liquidity forcing the call rate to move mostly at its earlier level although the demand for cash was moderate, they said.
The call rate might continue its present level for a limited period in coming days waiting for re-channelling of cash into the banking system, they said.
The call rate in its extreme range moved between 7.50 per cent and 17.00 per cent against previous day's range of between 8.00 per cent and 17.00 per cent, fund managers said.
In most deals, the rates, however, moved between 10.00 per cent and 15.00 per cent against previous day's range of between 12.00 per cent and 16.00 per cent in the inter-bank market, they added.
The borrowing of cash by some banks and non-banking financial institutions from the inter-bank market at high rates kept the market active, fund managers said.
The US dollar, however, appeared gainer against the Bangladesh taka (BDT) on the day in the inter-bank foreign exchange market because of higher supply, fund managers said.
The exchange rate of the dollar varied between Tk 68.48 and Tk 68.60 against the previous day's range of between Tk 68.48 and Tk 68.50 in the inter-bank foreign exchange market.
The greenback remained steady in public deals and the cash dollar was exchanged at rates varying between Tk 67.48 and Tk 69.75 maintaining previous day's range.
In the informal market, the dollar was also steady and it was traded at rates ranging between Tk 67.20 and Tk 67.60 against the previous day's range of between Tk 67.20 and Tk 67.70. The informal market experienced steady demand for the dollar on the day, money dealers said.