Dhaka, Bangladesh (BBN)- The inter-bank call money rate remained almost stable Monday, first working day after the Eid-ul-Azha festival, despite injection of fresh funds in the market by the central bank, treasury officials said.
The call money rate ranged between 4.50 per cent and 8.0 per cent on the day against 3.75 per cent and 8.50 per cent of the previous working day. But most of the deals were settled at rates varying between 4.50 per cent and 5.00 per cent, they added.
“The call rate may ease shortly as the flow of liquidity has been increasing in the banking system, which was withdrawn before the Eid festival,” a senior treasury official told the FE.
He also said the call rate was almost stable before the Eid festival, thanks to the central bank for its timely and effective measures to keep the money market stable.
The Bangladesh Bank (BB) has already strengthened its open market operations aiming to keep the market stable ahead of the Eid festival,
Under the operations, the central bank has injected fresh fund in the market through strengthening repurchase agreement (repo) auction and special liquidity support for the primary dealers (PDs).
The central bank injected fresh fund amounting to Tk 18.74 billion through repo auction at 4.50 per cent aiming to keep the inter-bank money market stable on the day.
On the other hand, the BB also provided funds worth Tk 4.30 billion at 4.50 per cent to PDs in line with assured liquidity support.
The central bank of Bangladesh earlier selected 13 PDs – 10 commercial banks and three NBFIs – to handle government-approved securities in the secondary market.
BBN/SS/SI/AD-01December09-1:45 pm (BST)