Dhaka, Bangladesh (BBN)– The call money rate remained almost stable on Thursday, the last working day before the Eid-ul-Fitr festival, despite higher withdrawal of cash from the banks, bankers said.
The inter-bank call money rate rose to 3.0-4.50 per cent on the day from 1.10-4.50 per cent of the previous working day. However, most of the deals were settled at rates varying between 3.25 per cent and 4.0 per cent, according to the market operators.
“Call money rates normally increase before the Eid festival to meet the growing demand for cash from the banks’ clients,” a senior treasury official of a leading private commercial bank told BBN in Dhaka.
He also said the call money rate is almost stable ahead of the Eid festival, as most of banks are awash with excess liquidity.
Meanwhile, the overall excess liquidity with the commercial banks has started showing a downturn due to higher credit growth, particularly in the private sector, a senior official of the Bangladesh Bank (BB) told BBN.
The excess liquidity came down to BDT 1.16 trillion as of May 26 from BDT 1.17 trillion in the first week of the same month, the BB data showed.
“We expect that the declining trend in excess liquidity with the banks may continue in the coming months, if the existing private-sector-credit flow persists,” the central banker noted.
Most branches of the banks at Motijheel, Dilkusha and other commercial places across the capital witnessed long queues of people on Thursday, waiting mostly to withdraw money before the Eid festival.
On the other hand, total turnover in the call money market also rose to BDT 67.31 billion on the day from BDT 63.91 billion of the previous working day, according to the BB’s statistics.