Money Market - Bangladesh Business News

Rising Trend of Call Money Rate May Continues Today

BBN Desk — Thu, 07 Jul 2022 05:56:52 +0000

Dhaka, Bangladesh (BBN) -The ongoing upward trend of inter-bank call money rate is likely to continue on Thursday, the last working day before the Eid vacation, following higher withdrawal of cash from the banks.

Customers are also withdrawing a significant amount of funds from banks on the occasion of Eid-ul-Azha to meet the expenses for buying sacrificial animals and other expenditures.

The weighted average rate (WAR) on call money rose to 5.48 per cent on Wednesday from 4.88 per cent of the previous working day, according to the central bank’s latest statistics. It was also 4.57 per cent on Monday.

Such a short-term borrowing normally increases before festivals, as demand for cash grows.

However, the volume of transactions in the inter-bank call money market may fall further today (Thursday) as some banks is providing funds to other cash-hungry banks with offering higher interest rates in the name of ‘short notice deposit (SND)’.

The total amount of transactions in the inter-bank call money market came down to BDT 86.87 billion on Wednesday from BDT 95.24 billion of the previous working day, the official data showed.

The call money rate ranged between 4.25 per cent and 6.00 per cent on the day against 4.00-6.00 per cent on Tuesday.

Most of the deals were settled at rates varying between 4.50 per cent and 5.50 per cent, according to market operators.

Actually, the banking sector of Bangladesh is now under liquidity stress as most of the banks are buying US dollars from the central bank to settle import payment obligations,

Meanwhile, excess liquidity in the country’s banking sector stood at BDT 1891.83 billion as of May 2022, down 11 per cent year-on-year.

Besides, the Bangladesh Bank (BB), the country’s central bank, has already hiked its policy rate twice within a month to curb the inflationary pressure o the economy.

The policy rate, which is followed by banks to fix their interest rates on both loans and deposits, was raised by 50 basis points to 5.50 per cent on June 30.

The market operators, however, expect that the call money rate might be stabilized after the Eid.

BBN/SSR/AD

Bangladesh market faces liquidity pressure, turnover falls

BBN Desk — Mon, 25 Feb 2019 03:51:27 +0000

Dhaka, Bangladesh (BBN) – Bangladesh money market faced liquidity pressure in the last week, ended on Wednesday while the exchange rate of local currency against the US dollar remained stable.

A good number of banks have expressed their unwillingness to lend money to other banks through call money market mainly due to lower interest rates, according to market insiders.

As a result, amount of overall turnover in the call money market fell significantly in the last, they added.

The volume of overall transactions in the market came down to BDT 35.07 billion on Wednesday from BDT 59.56 billion a week ago, according to the central bank’s latest statistics.

The banks now prefer to invest their excess fund in the form of deposit to other cash-hungry banks instead of call money market, they explained.

Besides, inter-bank call money rate moved up slightly in the last week despite of lower borrowing by the government from the banking system to meet budget deficit partly.

The weighted average call money rate rose to 4.42 per cent on Wednesday Thursday from 4.41 per cent a week ago. It was 4.61 per cent on December 27, 2018.

The rate was 2.77 per cent at the end of June 2018. It was 4.03 per cent on December 27, 2017.

On the other hand, the central bank injected around BDT 20 billion in the market through repo auction and assured liquidity support (ALS) to the primary dealer banks on Wednesday.

Surplus fund with the government accounts along with selling of the US dollar by the central bank to the commercial banks continuously has pushed up liquidity pressure on the market, they added.

Currently, the government is holding more than BDT 50 billion in excess liquidity in its accounts, according to a senior central banker.

BBN/SSR/AD

Bangladesh Bank withdraws BDT116.71bn from market

BBN Desk — Sun, 21 Jun 2015 11:40:57 +0000

Dhaka, Bangladesh (BBN)-The Bangladesh Bank (BB) withdrew BDT 116.71 billion through reverse REPO auction on Sunday to keep the country’s money market stable, officials said.
Fifteen bids of one-day tenor amounting total of BDT 116.71 billion were received and all the bids were accepted.
The rate of interest of reverse repo was 5.25 percent.
BBN/AD/ANS

Indian Rupee extends losses, breaches 64 mark in early trade

BBN Desk — Thu, 04 Jun 2015 06:50:57 +0000

Mumbai, India (BBN)-Extending Indian Rupee slide for the second straight day on Thursday, Indian rupee breached the 64 mark by falling 35 paise to 64.25 against the dollar in early trade on Thursday.
Sustained capital outflows by foreign funds amid appreciation of the American currency overseas weighed on Indian rupee, reports the Press Trust of India.
Besides, increased demand for dollar from importers and banks also went against the local currency, forex dealers said.
However, they said, a higher opening in the domestic equity market, capped the Indian rupee's fall.
The Indian rupee had closed 8 paise lower at 63.90 against the US dollar in on Wednesday’s trade due to steady demand for the greenback from importers amid sliding equities.
Meanwhile, the benchmark BSE Sensex recovered 111.64 points, or 0.41%, to 26,948.84 in early trade.
BBN/SK/AD

Rupee ends day at 63.14 against US dollar

BBN Desk — Tue, 28 Apr 2015 12:08:14 +0000

Mumbai, India (BBN)-The rupee strengthened by 37 paise at 63.12 against the US dollar in early trade today at Interbank Foreign Exchange on increased selling of the American currency by exporters.
Forex dealers said besides selling of the Greenback by exporters, a higher opening in the domestic equity market, supported the rupee, reports PTI.
However, a firm dollar overseas capped the rise in the rupee to some extent, they added.
The rupee had gained 8 paise to close at 63.48 against the US dollar, after plunging to a 4-month intra-day low of 63.77 in yesterday's trade, on fresh selling of the American currency by exporters and some banks.

Rupee trading strong at 63.50

BBN Desk — Mon, 27 Apr 2015 12:10:27 +0000

Mumbai, India (BBN)-The rupee wiped off its initial losses and was trading strong by 6 paise at 63.50 against the greenback in the evening trade on fresh dollar selling by exporters amid weak equities.
Earlier, the rupee opened weak at 63.70 against the last closing level of 63.56 at the Interbank Foreign Exchange market and dropped further to a four-month low of 63.77 before quoting at 63.50 at 4.15 pm local time, reports PTI.
The rupee hovered in a range of 63.77 and 63.49 during the evening trade.
Sustained capital outflows weighed down on the rupee sentiment, a dealer said.
In New York, the dollar started the week on the defensive in early trade after more disappointing US economic data reinforced expectations the US Federal Reserve will not hike interest rates any time soon, while concerns about Greece’s ongoing debt talks pressured the euro.
Meanwhile, the BSE Sensex plunged 260.95 points or 0.95 per cent at 27,176.99 at the closing session.

Rupee trims initial losses, still down

BBN Desk — Mon, 27 Apr 2015 07:08:19 +0000

Mumbai, India (BBN)-The rupee trimmed its initial losses, but was still quoting down by 7 paise to 63.63 against the greenback in late morning trade on continued bouts of month-end dollar demand from banks amd importers as well as weak equities.
Earlier, the rupee opened 63.70 as against last closing level of 63.56 at the Interbank Foreign Exchange market and later dropped further four month lows to 63.77 before quoting at 63.63 at 1100hrs, reports The Hindu.
The rupee hovered in a range of 63.77 and 63.55 during the morning deals.
Sustained capital outflows bearing on the rupee sentiment, a dealer said.
Overseas, in New York the dollar started the week on the defensive in early trade after more disappointing US economic data reinforced expectations the US Federal Reserve will not hike interest rates any time soon, while concerns about Greece’s ongoing debt talks pressured the euro.
Meanwhile, the BSE Sensex was trading lower by 96.80 points or 0.35 per cent to 27,341.14 in late morning trade.

BBN Desk — Thu, 23 Apr 2015 11:52:50 +0000

New Delhi, India (BBN)-The rupee fell to a three-month low of 63.28 against the US dollar on Thursday due to appreciation of the greenback overseas on strong American housing sales data.
This is Indian currency's lowest level since January 7, when it had touched 63.56 against the dollar, reports NDTV.
Fresh demand for the dollar from importers also weighed on the local currency, forex dealers said. The rupee had closed at 62.82/dollar on Wednesday.
Selling pressure in the stock market also hurt the sentiment. The Sensex fell over 200 points in late trade.

Rupee down 16 paise against dollar in early trade

BBN Desk — Thu, 23 Apr 2015 05:31:14 +0000

Mumbai, India (BBN)-The rupee fell by 16 paise at 62.98 against the US dollar in early trade on Thursday at the Interbank Foreign Exchange due to appreciation of the Greenback overseas on strong American housing sales data.
Besides, fresh demand for the dollar from importers weighed on the local currency but a higher opening in the domestic equity market, limited the rupee’s losses, forex dealers said, reports The Hindu.
The rupee had strengthened by 3 paise at 62.82 against the US dollar in Wednesday’s trade on persistent selling of the American currency by banks and exporters amid fresh foreign capital inflows into the equity market.
Meanwhile, the benchmark BSE Sensex regained the 28,000-mark by rising 164.34 points, or 0.58 per cent, at 28,054.47 in early trade.
BBN/SK/AD-23Apr15-11:10am (BST)

Rupee slides past 63/dollar for second day

BBN Desk — Wed, 22 Apr 2015 10:57:53 +0000

Mumbai, India (BBN)-Indian rupee slipped past the 63 levels against the US dollar for the second day in a row amid selling pressure in equities.
The rupee opened higher at 62.81/dollar today but could not sustain the early gains and fell to 63.02 levels at its day's low as selling pressure intensified in the equity markets, reports NDTV.
The rupee had closed at 62.85 on Tuesday, after hitting and intra-day low of 63.16.
The Nifty is on track to fall for the sixth day in a row amid selloff by foreign institutional investors.
In the past five sessions, Nifty had lost over 5 per cent.
On Tuesday, institutional investors were net sellers of Rs 1071 crore (excluding the Sun Pharma share sale from Daiichi).
At 2:30 pm, the rupee was off day's low and was trading at 62.93/dollar.
BBN/SK/AD-22Apr15-4:50pm (BST)