Dhaka, Bangladesh (BBN) – The country’s inter-bank call money rate maintained a stable level despite withdrawal of huge cash by the central bank using different tools from the market.
The call rate in its extreme range mainly fluctuated between 5.50 per cent and 11.50 per cent in the last week against the previous week’s range of 6.00 per cent to 11.50 per cent.
The rate, however, moved mainly between 6.50 per cent and 8.50 per cent in most deals against the previous week’s range of 6.50 per cent to 8.00 per cent that indicated a steady pressure on liquidity in the market, treasury officials said.
The Bangladesh Bank (BB), the country’s central bank, withdrew around BDT 66.72 billion through reverse repurchase agreement (repo) auctions at an interest rate of 6.50 per cent per annum against the previous week’s total of BDT 37.24 billion.
The central bank also withdrew BDT 4.00 billion, including BDT 252 million, against Bangladesh Government Treasury Bonds at an interest rate of 10.60 per cent per annum.
Besides, the BB accepted BDT 4.50 billion and BDT 1.20 billion against 91-day and 182-day bills respectively.
The net outflow of cash from the market was expected to increase pressure on liquidity, but it did not happen, they added.
BBN/SI/SS/AD-25October08-11:50 AM (BST)