Interbank Money Market
Cash transaction up ahead of Eid
Cash transaction in the interbank call money market rose by 46.13 percent in a span of one month as banks are adjusting their internal requirement ahead of Eid-ul Fitr pushing call money higher.
According to Bangladesh Bank latest data, the figures were Tk 7,029 crore on Tuesday from Tk 4,810 crore on 15 May 2018.
The interbank call money rate has risen gradually and quoted in the range between 1.75 percent and 4.50 percent.
On Tuesday, the weighted average call money rate increased to 3.59 percent against 3.03 percent on 15 May 2018.
A senior BB banker said that the banks have enough liquid money to meet customers’ demand brining stability in the money market.
He said the central bank is monitoring the market closely. It now appears that the market will remain stable, he added.
A senior official of bank informed Bangladesh Post, the interbank call money rate usually remains unchanged for the most of the time except for any unusual situation.
Earlier, the government has taken decision to increase deposits of public entities by 50 percent with the private banks, reduce bank’s deposit with the central bank in the form of CRR by one percentage point to 5.5 percent and limit bank's credit deposit ratio to reinvigorate the money market.
Md. Mehedi Hasan, vice president & head of treasury of Jamuna Bank, told Bangladesh Post that the money market is totally under control after the government move to ease the liquidity crisis.
He said the money market usually faces a huge demand for funds during Ramadan and ahead of Eid ul-Fitr to meet local customers’ needs, which sometimes make the market unstable.