The inter-bank call money rate remained almost stable on Monday, the last working day before the Eid vacation, despite big rush for withdrawal of cash from the banks.
The call money rate ranged from 4.50 per cent to 5.0 per cent on the day against the previous rate between 4.25 per cent and 5.0 per cent, according to the market operators.
However, the weighted average rate (WAR) on call money rose to 4.59 per cent on Thursday from 4.55 per cent of the previous working day, the central bank's latest statistics showed.
Senior bankers, however, said available liquidity helped keep the money market stable despite higher pre-Eid withdrawal of cash from the banks.
The central bank has continued to inject funds into the market through repo auction and assured liquidity support (ALS) to the banks to keep the market stable ahead of Eid.
As part of the move, the BB injected fresh fund amounting to more than Tk 269.24 billion into the market in the form of repo and ALS on Monday in line with the banks' requirements.
Earlier on Thursday, the central bank also injected Tk 230 billion into the market in the form of repo and ALS on the same grounds.
Different initiatives including injection of fund by the central bank into the market have helped keep the market stable ahead of Eid, according to Mehmood Husain, Managing Director and Chief Executive Officer (CEO) of NRB Bank Limited.
"It's a normal phenomenon," the senior banker said, adding that the existing trend in the market may continue this month.
"Pressure on the money market may rise in the month of July ahead of Eid-ul-Azha," Mr Husain predicted.
On the other hand, pressure on cash withdrawal from the banks is easing gradually as the use of credit and debit cards, referred to as plastic money, is increasing in Bangladesh, according to the bankers.
A good number of people are now connected with mobile financial services, agent banking and e-banking that reduces the tendency of holding cash money to their wallets, they explained.
The central bank has already asked the banks for ensuring transactions through smooth operations of alternative delivery channels (ADCs) round the clock during the Eid vacation.
Such channels cover the operations of Automated Teller Machine (ATM), Point of Sale (POS), e-Payment Gateway and Mobile Financial Services (MFS).
Transactions using digital channels such as ATM, internet or online and mobile normally go up significantly on the weekend and holidays.
