Dhaka, Bangladesh (BBN)- The inter-bank call money rate increased on Tuesday following the central bank’s latest moves to bring down the amount of reserve money (RM) within the target level of BDT 1,059 billion by December 31 this year.
The call rate ranged between 7.00 per cent and 12.00 per cent on the day against 7.00 per cent and11.50 per cent on the previous working day. However, most deals were settled at rates varying between 11.00 per cent and 12.00 per cent, market operators said.
“The call money rate may rise further by the end of this calendar year, if the central bank continues its latest operations using different monetary instruments,” a senior treasury official of a commercial bank told BBN in Dhaka.
He also said the BB has purchased the US dollar continuously from the banks with the 30-day BB bills and the government-approved securities instead of cash money.
Besides, the central bank has already squeezed the timeframe of assured liquidity support (ALS) for both primary dealer (PD) and non-PD banks by 15 days to 60 days from the previous 75 days to mop up excess fund from the market, he explained.
"We’re now using different monetary tools to bring down the amount of RM within the targeted level by the end of this month in line with the ongoing monetary policy," an executive director of the BB official said without celebrating.
BBN/SSR/AD-19Dec12-10:15 am (BST)
