Dhaka, Bangladesh (BBN) – The inter-bank call money market remained tight throughout the week following the central bank’s restrictions on liquidity support to the commercial banks, treasury officials said.
During the week, the call money rates remained within the range of 12 percent to 20 percent. However, most of the deals were settled between16 percent to 20 percent, the market operators said.
“The upward trend of call money rate remained unchanged in the week due mainly to temporary suspension of liquidity support through repurchase agreement (REPO) auction by the central bank” a senior treasury official of a leading private commercial bank (PCB) told BBN in Dhaka.
The Bangladesh Bank (BB), the country’ central bank, earlier suspended the REPO auction temporarily aiming to contain inflationary pressures on the economy. But it has also provided liquidity support to the banks through special REPO to meet their emergency demand for cash money, a central banker said.
BBN/SSR/AD-20Jan12-8:21 pm (BST)
