Dhaka, Bangladesh (BBN) – Upward trend in the call money rates may continue today (Wednesday) ahead of the Eid-ul-Azha festival, market operators said.

The call rate ranged between 2.0 per cent and 4.50 per cent on Tuesday against the previous range between 1.80 per cent and 4.50 per cent.

However, most of the deals were settled at rates varying between 4.0 per cent and 4.25 per cent, they added.

The weighted average rate (WAR) on call money rose to 4.04 per cent on Tuesday from 4.01 per cent of the previous level.

The volume of transaction, witnessing an upward trend in the recent days, indicates active participation of banks and non-banking financial institutions (NBFIs) in the call money market.

The volume of overall transactions in the market reached BDT 89.96 billion on Tuesday from BDT 89.42 billion of the previous day. It was BDT 85.40 billion on August 27.

Talking to BBN, a senior treasury official of a leading private commercial bank (PCB) said such upward trend is likely to continue today and tomorrow ahead of the Eid due to higher withdrawal of liquid money from the banks.

He also said such short-term borrowings normally increase before Eid to meet the growing demand for money from the banks.

However, the exchange rate of Bangladesh Taka (BDT) remained unchanged against the US dollar in the inter-bank foreign exchange market in early hour transactions on Sunday.

The US dollar was quoted at BDT 80.70 unchanged from the previous working till the report was filed at 11:04 am (local time).

However, the local currency depreciated slightly again the US dollar at customer level for clearing import payment obligations.

The average exchange rate of US dollar rose to BDT 81.6598 for bill for collection (BC) on Tuesday from BDT 81.6543 of the previous working day, according to the statistics of the Bangladesh Foreign Exchange Dealers Association (BAFEDA).