Dhaka, Bangladesh (BBN) – Inter-bank call-money rates remained unchanged on Monday despite higher withdrawal of cash from the banks ahead of the twin festivals of Eid-ul-Azha and Durga Puja, officials said.
The rates of interest on inter-bank borrowings ranged between 5.75 per cent and 8.50 per cent on the day unchanged from the previous level.
However, most of the deals were settled at rates varying between 7.25 per cent and 8.25 per cent, the market operators said.
On the other hand, the total turnover on the call-money market rose to BDT 78.97 billion on the day from BDT 71.93 billion last Sunday, according to the central bank statistics.
“The call money rate remains stable because availability of fund in the market,” a senior treasury official of a leading private commercial bank told BBN in Dhaka.
He also said such short term borrowings normally increase before Eid to meet the growing demand for money from the banks.
The central bank is injecting fresh funds in the market 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 Bangladesh Bank (BB) funnelled fresh funds worth BDT 35.17 billion on the day through special liquidity support to the primary dealers (PDs) and non-PD banks.
On September 28, the central bank injected funds worth BDT 28.01 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 hinted.
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 BDT 77.40 in the inter-bank exchange–unchanged from the previous level.
BBN/SSR/AD-30Sept14-8:46 am (BST)