Bangladesh Bank Headquarters

Dhaka, Bangladesh (BBN)– The weighted average yield on 07-Day Bangladesh Bank (BB) Bills fell to below 1.0 per cent while no bids for 14-Day BB bills were received on Wednesday, officials said.

The yield on 07-Day BB Bills came down to 0.85 per cent on the day from 1.32 per cent of the previous day, according to the central bank’s latest statistics.

Ten bids amounting to BDT 37.95 billion were offered for the BB bills auction on Wednesday. Of which, two bids amounting to BDT 10 billion were received.

On the other hand, 11 bids amounting to BDT 29.21 billion were offered for 14-Day BB bills auction on the same day. But no bid was accepted.

“We’re still discouraging the banks to invest their excess funds in the bills,” a BB senior official told the BBN while explaining the latest situation on the money market.

Besides, the central bank of Bangladesh has unofficially suspended the auction of 30-Day BB Bills since April 01 to help mitigate the liquidity crunch in the banking system.

Around one dozen banks are bound to deposit their excess fund with the BB’s current account without any returns, according to market insiders.

They also said all the scheduled have been able to use BDT 101 billion additional fund since April 15 after the implementation of revised cash reserve requirement (CRR) rules.

Under the revised rules, the banks are now maintaining 5.50 per cent instead of 6.50 per cent earlier CRR with the central bank from their total demand and time liabilities on a bi-weekly basis.

On the other hand, falling trend of inter-bank call money rate continued on Tuesday following higher inflow of fund on the same ground.

The weighted average inter-bank call money rate came down to 3.57 per cent on Wednesday from 3.70 per cent of the previous working day. It was 3.76 per cent on Monday.

The amount of overall transactions also fell to BDT 45.71 billion from BDT 45.93 billion. It was BDT 46.66 billion on Monday.