Dhaka, Bangladesh (BBN)– The call money rate felt drastically on Thursday, fifth working day after the Eid-ul-Azha festival, as the central bank injected a substantial amount of fresh fund into the market.
The inter-bank call rate ranged between 5.50 per cent and 12 per cent on the day against 5.00-25 per cent of the previous working day. However, most of the deals were settled at rates varying between 8.0 per cent and 12 per cent, treasury officials said.
“The call money rate dropped substantially on the day as continuing intervention into the market by the central bank through providing liquidity support to the commercial banks and non-banking financial institutions (NBFIs) to keep it stable,” a senior treasury official of a private commercial bank said.
Bangladesh Bank (BB) injected fresh funds worth BDT 44.1890 billion at 5.50 percent on Thursday 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 Wednesday, the central bank injected funds worth BDT 54.4033 billion using same mechanisms, the BB officials confirmed.
BBN/SI/AD-25Nov10-7:10 pm (BST)
