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Dhaka, Bangladesh (BBN) – Liquidity pressure on Bangladesh money market is expected to ease further as the government is set to lower its borrowing from the market.

The easiness of the liquidity pressure has already begun in the last week ended on Thursday due to inflow of funds by some banks including state-owned ones.

Besides, extension of advance-deposit ratio (ADR) adjustment deadline by six months may help easing the ongoing liquidity pressure on the market, according to market insiders.

In a circular issued on Thursday, the central bank of Bangladesh extended the deadline to September 30 this year from March 31 to adjust the ratio. This is the third extension since January 2018.

On the other hand, overall turnover has started improving in the inter-bank call money market as some banks return to the market from other options like inter-bank repo or short-term deposits to other banks.

The volume of overall transactions in the market rose to BDT 60.15 billion on Thursday from BDT 35.07 billion a week ago, according to the central bank’s latest statistics.

On the other hand, the weighted average call money rate came down to 4.53 per cent on Thursday from 4.57 per cent on Sunday. It was 4.61 per cent on December 27, 2018.

The rate was 2.77 per cent at the end of June 2018. It was 4.03 per cent on December 27, 2017.

The central bank, however, injected funds in the market through repo auction along with assured liquidity support (ALS) to the primary dealer banks like previous week.