Bangladesh’s money market falls, FX ups continuously

Last updated: October 30, 2015

Dhaka, Bangladesh (BBN)- Falling trend in the money market continued until Thursday while the local currency depreciated further against the US dollar, treasury officials said.
The call rate ranged between 3.0 per cent and 5.25 per cent on the day against 3.0 per cent and 5.50 per cent of the previous level.
But most of the deals were made at rates between 4.75 per cent and 5.00 per cent, according to the market operators.
The overall turnover in the call money market rose to BDT 40.98 billion on Tuesday from BDT 39.66 billion of the previous working day, according to the central bank latest statistics, released on Thursday.
“The call money maintained a declining trend recently as the central bank has accepted reverse REPO auction bids partially,” a senior treasury official of a leading private commercial bank told BBN in Dhaka.
On Thursday, the Bangladesh Bank (BB) received 20 bids of three-day tenor amounting to BDT 173.40 billion. Of which, 20 bids amounting BDT 95.39 billion were accepted.
On the other hand, the banks quoted the US dollar at maximum BDT 78.02 on the day against BDT 77.98 of the previous working day.
Talking to BBN, another treasury official of commercial bank said the local currency depreciated against the US dollar slightly due to higher demand for the US currency for making import payments by some banks.
Normally, the demand for the US currency picked up during the October –November period to settle the import payments for fuel oils and fertilizer, he explained.

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