Slight rise in call money rate
Wednesday, 16 September 2009
FE Report
The inter-bank call money rate increased slightly on Tuesday as there was rising pressure on cash withdrawal ahead of the Eid-ul-Fitr festival, treasury officials said.
"The call money rate moved up further on the day despite injection of fresh funds amounting to around Tk 3.729 billion by the central bank through buying US dollar from the commercial banks," a senior treasury official of a commercial bank told the FE.
He also said the short-term borrowings normally increase before the Eid festival to meet the growing demand from bank clients.
The call rate ranged between 3.75 per cent and 8.25 per cent on the day against the previous range between 3.00 per cent and 7.50 per cent. However, most of the deals were settled at rates varying between 5.00 per cent and 6.00 per cent, the market operators said.
The Bangladesh Bank (BB) purchased US$54 million more from different commercial banks at market rate on the day aiming to keep the inter-bank foreign exchange market stable.
On Monday, the central bank similarly purchased $29.50 million from different commercial banks on the same ground, the central bank officials said.
"We've bought U.S. dollars from the commercial banks at market rate to help them comply with the net open position (NOP) rules on maintaining the foreign currency fund," a BB senior official told the FE.
He also said the central bank continues its intervention in the inter-bank foreign exchange market through buying US dollar from the commercial banks directly aiming to keep the market stable.
A total of $1.296 billion was bought from the commercial banks until September 15, 2009 as part of the move, the BB officials confirmed.
The inter-bank call money rate increased slightly on Tuesday as there was rising pressure on cash withdrawal ahead of the Eid-ul-Fitr festival, treasury officials said.
"The call money rate moved up further on the day despite injection of fresh funds amounting to around Tk 3.729 billion by the central bank through buying US dollar from the commercial banks," a senior treasury official of a commercial bank told the FE.
He also said the short-term borrowings normally increase before the Eid festival to meet the growing demand from bank clients.
The call rate ranged between 3.75 per cent and 8.25 per cent on the day against the previous range between 3.00 per cent and 7.50 per cent. However, most of the deals were settled at rates varying between 5.00 per cent and 6.00 per cent, the market operators said.
The Bangladesh Bank (BB) purchased US$54 million more from different commercial banks at market rate on the day aiming to keep the inter-bank foreign exchange market stable.
On Monday, the central bank similarly purchased $29.50 million from different commercial banks on the same ground, the central bank officials said.
"We've bought U.S. dollars from the commercial banks at market rate to help them comply with the net open position (NOP) rules on maintaining the foreign currency fund," a BB senior official told the FE.
He also said the central bank continues its intervention in the inter-bank foreign exchange market through buying US dollar from the commercial banks directly aiming to keep the market stable.
A total of $1.296 billion was bought from the commercial banks until September 15, 2009 as part of the move, the BB officials confirmed.