Dhaka, Bangladesh (BBN)-Liquidity pressure on Bangladesh’s money market increased slightly in the last week as the government’s higher borrowing from the banking system to meet budget deficit partly.
The volume of transaction in the call money market fell significantly in the last week because the fund was moved using other windows like inter-bank repo and special notice deposits (SND).
The amount of overall transaction in the call money market came down to BDT 45.70 billion on Thursday from BDT 79.51 billion a week ago.
The call money rate ranged between 3.25 per cent and 5.50 per cent in the last week against 3.00-5.50 per cent of the previous week. But most of the deals were settled at rates varying between 4.00 per cent and 5.50 per cent.
Meanwhile, the weighted average rate (WAR) on call money rose to 4.91 on Thursday from 4.73 per cent a week ago. It was 4.61 per cent on December 27, 2018.
On the other hand, the WAR on inter-bank repo also rose to 5.58 per cent on Wednesday from 5.06 per cent of the previous working day.