Dhaka, Bangladesh (BBN)- Bangladesh’s inter-bank call money rate remained stable in the early trading on Monday, the second working day after the Eid-ul-Azha festival, despite withdrawal of fund from the market by the central bank, treasury officials said.
The call money rate ranged between 5.30 per cent and 6.50 per cent on the day unchanged from the previous level. However, most of the deals were settled at rates varying between 5.50 per cent and 6.0 per cent, according to the market operators.
On the other hand, the overall turnover in the call money market came down to BDT 54.14 billion on Sunday from BDT 55.82 billion of the previous working day, according to the central bank latest statistics, released on Monday.
“The call money rate remained stable before the Eid because more than 10 banks are having excess liquidity,” a senior treasury official of a foreign commercial bank told BBN in Dhaka.
The official also said the central bank is also managing overall the market prudently using its instruments.
However, the Bangladesh Bank (BB), the country’s central bank, has expedited mopping up the excess liquidity from the market through reverse REPO (repurchase agreement) auction to keep the call money rate stable after the Eid.
The central bank of Bangladesh Bank withdrew BDT 72.51 billion at 5.25 per cent from the market through reserve REPO auction on Sunday. It was BDT 57.07 billion on the previous working day.
“We’re using our monetary instruments efficiently to keep both money and inter-bank foreign exchange market stable ahead of the Eid,” a senior central banker explained.
BBN/SSR/AD