Call money rate remains high in Bangladesh

Last updated: December 16, 2011

Dhaka, Bangladesh (BBN) - The inter-bank call money rate remained high during the week, ended on Thursday, treasury officials said.

The call money market rates ranged between 10 percent and 20 percent throughout the week. On Thursday, most of the deals traded between 19 and 20 percent.

The call money rate shot up 22 percent at the maximum on December 7 last, indicating emergence of a fresh 'temporary' liquidity pressure in the money market.

The liquidity pressure followed the restrictive policy move by Bangladesh Bank (BB), the country’s central bank, about providing the required amount of support to the commercial banks, particularly primary dealers (PDs).

“Such situation is almost same in the market,” a senior treasury official of a leading private commercial bank told BBN in Dhaka without elaborating.

The central bank earlier selected 15 PDs -- 12 commercial banks and three non-banking financial institutions (NBFIs) -- to deal with government securities in the secondary market.

BBN/SSR/AD-17Dec11-12:41 am (BST) 

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