Dhaka, Bangladesh (BBN)– Liquidity pressure on Bangladesh money market eased slightly in the last week, ended on Thursday after celebrating the Eid-ul-Fitr festival.
After the Eid vacation, the liquidity pressure on the market decreased to some extend following disbursement of the government funds as well as cash deposit with banks has been increased.
Overall turnover also increased slightly during the period under review despite some banks were reluctant to lend their excesses fund to other banks through call money market mainly due to lower interest rates.
The banks prefer to invest their fund in other forms including deposit to other cash-hungry banks instead of call money market, according to market insiders.
The volume of overall transactions in the market rose to BDT 66.48 billion from BDT 41.91billion a week ago, according to the central bank’s latest statistics.
However, the weighted average call money rate came down to 4.55 per cent on Thursday from 4.59 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 has continuously injected funds in the market through repo auction and assured liquidity support (ALS) to the primary dealer banks like previous weeks.