Dhaka, Bangladesh (BBN) - The call money rate eased slightly on Wednesday, first working day after the Eid-ul-Azha festival, as the central bank injected a substantial amount of fresh fund into the market, treasury officials said.
The call rate ranged between 20.00 percent and 21.00 percent on the day against the previous range between 10.00 percent and 23.00 percent. However, most of the deals were settled at 21.00 percent, they added.
“The call rate may ease gradually after increase in flow of liquidity in the banking system,” a senior treasury official of a commercial said, adding that the flow of liquidity may increase shortly due to refund of the cash, which were withdrawn before the Eid festival, in the banking system.
Central bank of Bangladesh has continued providing liquidity support to the commercial banks to ease the cash money demand in the market.
As part of the move, the Bangladesh Bank (BB) injected BDT 85.01 billion fresh fund on Wednesday, up by BDT 26.71 billion from that of the previous working day, through auction of repurchase agreement (repo), special repo and liquidity support to the primary dealers (PDs).
The central bank pumped BDT 58.30 billion funds into the market on Thursday last using the same mechanisms, the BB data showed.
The central bank earlier selected 15 PDs - 12 banks and three non-banking financial institutions (NBFIs) - to deal with government securities in the secondary market.
BBN/SSR/AD-09Nov11-7:22 pm (BST)