Dhaka, Bangladesh (BBN)-The country’s inter-bank call money rate eased last week, as the market enjoyed ample flow of cash, treasury officials said.
The call rate in extreme range fluctuated mainly between 6.00 per cent and 11.50 per cent against the previous week’s range between 7.00 per cent and 12.00 per cent.
The rate, however, fluctuated mainly between 6.50 per cent and 8.00 per cent in most deals against the previous week’s range between 7.50 per cent and 8.50 per cent indicating a lower pressure on liquidity in the market, they added.
The Bangladesh Bank (BB), the country’s central bank, withdrew around BDT 37.24 billion through reverse repurchase agreement (repo) auctions at an interest rate of 6.50 per cent per annum which left little impact on liquidity.
It also withdrew BDT 1.50 billion, including BDT 356.50 million that devolved to primary dealers, through 15-year Bangladesh government treasury bonds at an annual interest of 12.14 per cent.
The market witnessed a moderate pressure on liquidity from the beginning of the week and the central bank tried to maintain stability by withdrawing cash from the market. It withdrew cash through bills, bonds and reverse repo auctions to ensure balance between demand and supply, the officials noted.
BBN/SI/SS/AD-18October08-3:18 PM (BST)