Sufficient funds keep call money rate steady
Wednesday, 10 October 2007
FE Report
Availability of sufficient funds kept the inter-bank call money rate steady Tuesday despite huge withdrawal of cash from the banking system ahead of the Eid-ul-Fitr festival.
The call money rate moved up slightly on the day because of fund withdrawal for Eid shopping and other expenses, market operators said.
Hundreds of people were seen waiting in long queues to withdraw money at different bank branches at Motijheel, Dilkusha and other commercial places in the city, witnesses said.
"The call rate did not shoot up much on the day due to huge excess liquidity in the banking system," a treasury official of a commercial bank told the FE Tuesday.
Excess liquidity with all scheduled banks was recorded at Tk 142.84 billion by the end of July last against Tk 142.79 billion at the end of June 2007, according to the central bank statistics.
The call rate ranged between 6.50 per cent and 10.00 per cent on the day, unchanged from the previous working day, while most of the deals were settled between 7.00 per cent and 8.00 per cent, sources in the market said.
Availability of sufficient funds kept the inter-bank call money rate steady Tuesday despite huge withdrawal of cash from the banking system ahead of the Eid-ul-Fitr festival.
The call money rate moved up slightly on the day because of fund withdrawal for Eid shopping and other expenses, market operators said.
Hundreds of people were seen waiting in long queues to withdraw money at different bank branches at Motijheel, Dilkusha and other commercial places in the city, witnesses said.
"The call rate did not shoot up much on the day due to huge excess liquidity in the banking system," a treasury official of a commercial bank told the FE Tuesday.
Excess liquidity with all scheduled banks was recorded at Tk 142.84 billion by the end of July last against Tk 142.79 billion at the end of June 2007, according to the central bank statistics.
The call rate ranged between 6.50 per cent and 10.00 per cent on the day, unchanged from the previous working day, while most of the deals were settled between 7.00 per cent and 8.00 per cent, sources in the market said.