Dhaka, Bangladesh (BBN) - The inter-bank call money rate hit 15 per cent on Monday ahead of the Eid-ul-Azha festival, treasury officials said.
The call rate ranged between 12.00 per cent and 15.00 per cent on the day against the previous range between 7.25 per cent and 14 per cent. However, most of the deals were settled at rates varying between 12.00 per cent and 13.00 per cent, the market operators said.
“The call money rate was almost stable on the day, following injection of fresh fund into the market by the central bank to keep it stable,” a senior private banker said, adding that the short-term borrowings normally increase before the Eid to meet the growing demand for cash from the banks.
The Bangladesh Bank (BB) has continued providing liquidity support to the commercial banks and non-banking financial institutions (NBFIs) to ease the increased demand for cash money ahead of the Eid festival.
As part of the move, the central bank made available BDT 66.76 billion fresh fund to the banks on the day through auction of repurchase agreement (repo), special repo and liquidity support to the primary dealers (PDs).
The central bank of Bangladesh earlier selected 15 PDs - 12 banks and three NBFIs - to deal with government securities in the secondary market.
On Sunday, the BB also injected BDT 51.50 billion fund, using the same mechanism, a BB official confirmed.
BBN/SI/AD-31Oct11-10:04 pm (BST)
