Dhaka, Bangladesh (BBN)- The inter-bank call money rate remained almost stable on Thursday as there was injection of fresh funds by the central bank in the market ahead of the Eid-ul-Fitr, treasury officials said.
The call rate ranged between 2.50 percent and 7.25 percent on the day against the range between 3.00 percent and 7.25 percent of the previous day. However, most of the deals were settled at rates varying between 3.00 percent and 4.00 percent, the market operators said.
“The central bank has injected fresh funds through purchasing US dollar from the commercial banks directly,” a senior treasury official of a commercial bank said, adding that some banks are selling their excess foreign currency to the central bank and receive local currency that is being used in the money market before the Eid festival.
The short-term borrowings normally increase before the Eid festival for meeting the growing demand of bank clients, they added.
The central bank continues its intervention in the inter-bank foreign exchange market through buying of US currency directly from the commercial banks aiming to keep the market stable.
As part of the move, the Bangladesh Bank (BB) purchased $20 million at market rate Thursday from a private commercial bank on the same ground, officials said.
US dollar was quoted at a single rate at BDT 69.06 on the day, unchanged from the previous level in the inter-bank foreign exchange market, the treasury officials confirmed.
BBN/SS/SI/AD-11September09-2:18 am (BST)