Dhaka, Bangladesh (BBN) – The call money rate maintained an upward trend on Monday, second working day after the Eid-ul-Azha festival, despite the injection of fresh fund into the market by Bangladesh Bank (BB).

The inter-bank call rate ranged between 15 percent and 28 percent on the day against 6.50-28.00 percent of the previous working day. However, most of the deals were settled at rates varying between 18 per cent and 20 per cent, the market operators said.

The central bank has continued providing liquidity support to the banks and non-banking financial institutions (NBFIs) to ease the cash money demand in the market.

Under the operation, the BB injected fresh funds worth BDT 57.3116 billion at 5.50 percent on Monday through auction of repurchase agreement (repo) and special liquidity support to the primary dealers (PDs).

The central bank of Bangladesh earlier selected 15 PDs – 12 banks and three NBFIs – to handle government securities in the secondary market.

On Sunday, the BB injected funds worth BDT 55.8490 billion using same mechanisms, the central bank officials confirmed.

“The call money rate may ease shortly after increase in flow of liquidity in the banking system,” a senior treasury official of a commercial bank said, adding that the flow of liquidity may increase gradually due to refund of the cash, which were withdrawn before the Eid festival, in the banking system.

BBN/SI/AD-23Nov10-9:58 am (BST)