Dhaka, Bangladesh (BBN) – The inter-bank call money rate mostly moved on a steady level in the last week despite withdrawal of large amounts of fund through different tools used by the central bank, treasury officials said.
The call rate in extreme range fluctuated mainly between 6.25 per cent and 11.50 per cent against the previous week’s range between 5.50 per cent and 11.50 per cent.
The rate, however, moved mainly between 6.50 per cent and 7.50 per cent in most deals against the previous week’s range between 6.50 per cent and 8.00 per cent reflecting almost a steady pressure on liquidity, they added.
Some banks and non-banking financial institutions borrowed cash at high rates from the inter-bank market to meet their urgent needs that raised the call rate above normal level in a limited number of deals.
The dealer banks mainly borrowed cash at rates varying between 6.50 per cent and 8.00 per cent among them in the inter-bank market against the previous week’s range between 6.50 per cent and 7.50 per cent, according to the officials.
The Bangladesh Bank (BB), the country’s central bank withdrew around BDT 45.00 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 70.00 billion.
It also withdrew BDT 4.00 billion, including BDT 2.705 billion that devolved to primary dealers (PDs), conducting auctions of 10-year Bangladesh government treasury bonds at an interest rate of 11.72 per cent per annum.
Besides, the government borrowed BDT 5.00 billion on Sunday through auctions of treasury bills. This caused withdrawal of BDT 5.00 billion from the market in the week, according to reports.
BBN/SI/SSR/AD-08November08-3:24 PM (BST)