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Call rate drops further, dollar stable
FE Report
10/24/2005
Call money rate slightly dropped further Sunday while the US dollar was mostly stable against the local currency in the inter-bank foreign exchange market, sources said.
The call rate registered a declining trend on the day despite the central bank's withdrawal of fresh fund from the market, using its reverse repurchase agreement (repo) tool.
The Bangladesh Bank (BB) withdrew fund from the market amounting to Tk 2.25 billion at 5.50 per cent Sunday through the reverse repo auction to keep the market stable.
The call rate ranged between five per cent and 12 per cent on the day from 5.25 per cent and 12 per cent of the previous day. But most of the deals were settled between 6.00 per cent and 6.50 per cent, the market sources added.
The three nationalised commercial banks (NCBs) - Sonali, Janata and Agrani - mostly quoted the call rates between 6.00 per cent and 6.50 per cent Sunday, while the private commercial banks (PCBs) and foreign banks lent funds at 5.00-12.00 per cent.
The government borrowed Tk 11.337 billion from the banking system through the auction of treasury bills Sunday. But a total of Tk 12.785 billion will be injected into the market due to maturity of some treasury bills. It will result in a net inflow of Tk 1.448 billion from the market this week.
On the other hand, the US dollar was mostly stable against the local currency on the day, despite short supply of the greenback in the market.
The banks quoted the dollar at Tk 65.70-65.75 on the day, unchanged from the previous level.
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