Inter-bank call-money rates moved up modestly Sunday following higher withdrawal of cash from the banks ahead of the twin festivals of Eid-ul-Azha and Durga Puja, official sources said.
The rates of interest on inter-bank borrowings ranged between 5.75 per cent and 8.50 per cent on the day.
The previous call-money rates had ranged between 5.25 per cent and 8.25 per cent.
However, most of the deals were settled at rates varying between 7.25 per cent and 8.25 per cent, the market operators said.
The weighted average rate of the call money rose to 7.74 per cent on the day, from 7.48 per cent of the previous working days, according to Bangladesh Bank (BB) statistics.
On the other hand, the total turnover on the call-money market came down to Tk 71.93 billion on the day from Tk 83.26 billion last Thursday, the BB data showed.
"The call-money rates increased slightly Sunday due mainly to higher demand for cash from the banks ahead of the Eid and Puja festivals," a senior treasury official of a leading private commercial bank told the FE.
Such short-term borrowings normally increase before Eid to meet the growing demand for money from the banks, the banker explained.
The central bank is augmenting injection of fresh funds through assured liquidity support to the banks aiming to keep the money market stable ahead of the two festivals.
As part of the move, the BB funnelled fresh funds worth Tk 28.01 billion on the day through special liquidity support to the primary dealers (PDs) and non-PD banks.
On September 25, the central bank injected funds worth Tk 12.72 billion through same mechanisms, according to the BB officials.
"Such injection of funds will be continued in line with the market requirement," a senior BB official told the FE, without elaborating.
On the other hand, the US dollar remained almost unchanged against the local currency on the inter-bank foreign-exchange market.
The stability in the exchange rate is attributed mainly to lower demand for the greenback.
The dollar quoted a single rate at Tk 77.40 in the inter-bank exchange--unchanged from the previous level.
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