Dhaka, Bangladesh (BBN) – Upward pressure in call money rate continued Tuesday trading despite the release of fresh fund into the market by the central bank, market operators said.
The call rate ranged between 8.00 per cent and 9.25 per cent Tuesday against 7.00-10.25 per cent on the previous working day.
However, most of the deals were settled at rates varying between 8.00 per cent and 9.00 per cent, they confirmed.
“We’ll provide liquidity to the banks and NBFIs until the upcoming Eid-ul-Fitr in line with the market requirement,” a senior official of the Bangladesh Bank (BB) told BBN in Dhaka.
He also said the central bank has taken the measure aiming to keep the money market stable ahead of the Eid.
The central bank has continued providing liquidity support to the banks and non-banking financial institutions (NBFIs) to ease the cash money demand in the market during the holy month of Ramadan.
As part of the move, the BB injected fresh funds worth BDT 17.30 billion at 4.50 per cent Tuesday through auction of repurchase agreement (repo) and special liquidity support to the primary dealers.
The central bank earlier selected 15 PDs – 12 banks and three NBFIs – to handle government securities in the secondary market.
On the other hand, the US dollar remained almost unchanged against Bangladesh Taka (BDT) in the inter-bank foreign exchange market due mainly to a low demand for the greenback.
The US dollar was quoted at BDT 69.5000 in the inter-bank foreign exchange market Tuesday against BDT 69.4500- BDT 69.4600 of the previous working day, the BB data showed.
BBN/SI/AD-17Aug10-7:30 pm (BST)