Call rate, dollar remain steady

FE Report

The inter-bank call money rate remained steady Sunday despite strong demand for cash, as the central bank injected large amount of fresh cash into the market through repurchase agreement (repo). The US dollar also repeated its stable level against Bangladesh taka (BDT) in the inter-bank foreign exchange market due to moderate demand for the greenback, fund managers said.

The call rate in extreme range fluctuated mainly between 8.0 per cent and 12.0 per cent maintaining previous trading day's range.

Most deals were, however, made at rates varying between 8.50 per cent and 9.50 per cent against previous day's range of 8.50 per cent and 9.0 per cent reflecting mostly steady pressure on liquidity, they said.

The call rate, however, crossed main trend in stray deals with borrowing of cash by some financial institutions at high rates from inter-bank market to meet urgent needs of their clients, fund managers said.

The central bank injected fresh cash of Tk 39.3025 billion, including Tk 4.93 billion devolved to primary dealers for liquidity support, into the market through repo auctions at an annual interest rate of 8.75 per cent, they said.

On the other hand, the central bank withdrew Tk 2.45 billion through reverse repo auctions at an interest rate of 6.75 per cent per annum.

In addition, the government borrowed Tk 7.50 billion through treasury bills.

The withdrawals of cash, however, exerted negligible pressure on liquidity, fund managers said.

The dollar was stable against taka due to moderately active market resulted from weekend in the international market. The exchange rate of the dollar stood at Tk 68.95 maintaining previous trading day's rate. Most banks maintained buying mood.

The greenback was also steady in public deals and the cash dollar was transacted at rates varying between Tk 67.85 and Tk 70.85 that repeated previous trading day's range.

In the informal market, the dollar was steady and it was traded mainly at rates varying between Tk 68.30 and Tk 68.70 against previous day's range of between Tk 68.30 and Tk 68.80. The informal market experienced moderate demand for the foreign currency, money dealers said.

The exchange rate of the Indian rupee against the taka fluctuated between Tk 1.3631 and Tk 1.4471.