Dhaka, Bangladesh (BBN) - The inter-bank call money rate remained stable on Wednesday as pressure on withdrawal of cash from the banks eased, treasury officials said.
The call rate ranged between 6.50 percent and 14.00 percent on Wednesday, the first working day after the Eid-ul-Fitr festival, against the previous range between 7.00 percent and 14 percent.
However, most of the deals were settled at rates varying between 13.00 per cent and 14.00 per cent, the market operators said.
"The call rate eased slightly following subsided demand for fresh liquidity in the market," a senior treasury official of a foreign commercial bank said, adding that the prevailing liquidity inflow is expected to remain in such level which will further push down the call money rate in the near future.
Total turnover in the market rose to BDT 58.97 billion on Wednesday from BDT 52.07 billion of the previous working day, according to the central bank statistics.
"The central bank is providing fresh fund to the commercial banks using different monetary instruments including repurchase agreement (repo) auction aiming to keep the money market stable," a senior official of the Bangladesh Bank (BB) said, adding that such injection of fund will be continued in line with the market requirement.
The central bank has been providing liquidity support to the banks through auction of repo and special liquidity support to ease the pressure on the market.
As part of the move, the BB injected fresh funds worth BDT 156.02 billion on the day through auction of repo and special liquidity support to the primary dealers (PDs) and non-PDs.
On August 14 last, the central bank injected funds worth BDT 165.22 billion using same mechanisms, the central banker said.
BBN/SSR/AD-23Aug12-10:50 am (BST)
