Dhaka, Bangladesh (BBN) – Total turnover in the inter-bank call money market increased significantly on Sunday, the first working day after the Eid-ul-Fitr vacation while rates remained almost stable.
Total turnover in the call money market rose to BDT 77.04 billion on the day from BDT 67.31 billion of the previous working day, according to the central bank latest statistics.
The call rate ranged between 1.0 per cent and 4.75 per cent on the day against the previous range between 3.00 per cent and 4.75 per cent. However, most of the deals were settled at rates varying between 3.25 per cent and 4.0 per cent, according to the market operators.
“The demand for overnight borrowing may increase shortly following higher borrowing from the banking system by the government,” a senior treasury official of a leading private commercial bank told BBN in Dhaka on Monday without elaborating.
Meanwhile, the overall excess liquidity with the commercial banks has started showing a downturn due to higher credit growth, particularly in the private sector, a senior official of the Bangladesh Bank (BB) told BBN earlier.
The excess liquidity came down to BDT 1.16 trillion as of May 26 from BDT 1.17 trillion in the first week of the same month, the BB data showed.
“We expect that the declining trend in excess liquidity with the banks may continue in the coming months, if the existing private-sector-credit flow persists,” the central banker noted.