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Call money rate hits 14 month high Monday

  • Sun Online Desk
  • 17th November, 2021 06:03:56 PM
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Call money rate hits 14 month high Monday

The country’s call money rate increased to a 14-month high on Monday due to growing demand of cash in banks as investment has risen in various sectors after the Covid-19 epidemic situation improved recently.

On Sunday, interbank call money transaction was recorded at Tk8,378 at a rate of Tk3.14 notwithstanding the number of transaction did not increase significantly.

Many banks are not able to pay interest on the deposit after fixing the minimum interest rate on bank deposits.

 Although the deposits of many banks have decreased, the amount of loans remained the same. Yet, banks have to save Advance Deposit Ratio (ADR) and Statutory Liquidity Ratio (SLR) against deposits and loans. So, banks are relying on the money market and its rates are rising sharply.

On 7 November, the amount of call money transaction was Tk8,748 and the rate was Tk2.27.

Call money rate was Tk1.78 in January, Tk2.8 in May and Tk2.25 in June. The rate was less than Tk2 in August. Since the first week of November, rate started to rise.