Dhaka, Bangladesh (BBN)– The central bank of Bangladesh has started monitoring the money market closely to avoid any risk in the near future, officials said.
Under the moves, the Bangladesh Bank (BB) has already sat with chief executive officers of two private commercial banks and planned to meet with another three on Thursday.
“We’ll watch the country’s money market situation constantly for the next two weeks before taking any punitive measures against the banks that would fail to minimize the mismatch between assets and liabilities,” a BB senior official said.
The inter-bank call money rate eased further on Wednesday following the central bank’s intervention in the market, officials said.
The call rate ranged between 18 percent and 30 percent on the day against 9-35 per cent of the previous working day. However, most of the deals were settled at rates ranging from 18 per cent to 20 per cent, treasury officials said.
The central bank first intervened in the market on Monday, which continued until Wednesday to bring back stability in the inter-bank call money rate, BB officials said.
“Such intervention may continue if required by the market,” the BB official said, adding that the call money rate is likely to ease further on Thursday.
BBN/SI/AD-23Dec10-9:38 am (BST)
