Dhaka, Bangladesh (BBN) - The inter-bank call money rate moved up further on Tuesday, as withdrawal of cash from the banks gathered pace ahead of the Eid-ul-Azha festival.
The call rate ranged between 10.00 percent and 19.00 per cent on Tuesday against the previous range between 10.00 per cent and 15 per cent. However, most of the deals were settled at rates varying between 16.00 per cent and 17.00 per cent, the market operators said.
"The call money rate moved up slightly on the day despite the central bank's pumped fresh fund into the market to keep it stable," a senior treasury official of a leading private commercial bank told BBN.
The private banker also said the upward trend of call money may continue until Thursday, the last working day before the Eid festival, to meet the growing demand for cash of the banks’ clients.
Commercial banks and non-banking financial institutions (NBFIs) traded worth BDT 47.05 billion Tuesday in the inter-bank money market, according to the central bank statistics.
The central bank is continuously providing liquidity support to the commercial banks to ease the cash money demand in the market ahead of the Eid festival.
As part of the move, the Bangladesh Bank (BB) injected fresh fund worth BDT 72.30 billion on the day through auction of repurchase agreement (repo), special repo and liquidity support to the primary dealers (PDs).
The central bank earlier selected 15 PDs - 12 banks and three NBFIs - to deal with government securities in the secondary market.
On Monday, the BB pumped funds worth BDT 66.76 billion using the same mechanisms, the BB data showed.
BBN/SSR/AD-01Nov11-9:45 pm (BST)
