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KARACHI, May 28: The overnight call rates crashed in the inter -bank market on Tuesday as some banks that had put in more than required money in cash reserves taken out the additional amount to lend in the market.
Some senior bankers said overnight call rates fell to 1.25-2.0 per cent from 5-6 per cent on Monday but others said the rate oscillated in a wide range of 2-6 per cent. Bankers said that one- week and two-week rates also came down to 5 and 6 per cent from 7 and 6.25 per cent respectively on Monday.
Bankers said it was difficult to estimate surplus liquidity in the market but most of them would say the market was long by not less than Rs2-4 billion.
On Monday the State bank had injected Rs17.3 billion (net injection Rs10.85bn) to ease off a serious liquidity crisis that had hit the market on May 19.
Senior bankers said the higher liquidity level seen on Tuesday would not prolong and the market would square itself off within a couple of days. “So I see the interest rates stable in the days to come,” said treasurer of a foreign bank.
On Wednesday the central bank will auction treasury bills in the market. Senior bankers say much about interest rate stability would depend on the auction results.
EXCHANGE RATE: Bankers said the US dollar closed one paisa higher in the inter-bank market at Rs60.13/Rs60.15 for ready buying and selling against the previous close of Rs60.12/ Rs60.14 respectively.
They said the dollar gained as National Bank and Emirates Bank made about $20 million oil import payments on behalf of oil marketing companies. They said about $5 million forward booking by importers also took place as forward premiums softened on Tuesday.
“If nothing unusual happens I see the dollar closing around Rs60/Rs60.15 by the end of the fiscal year in June,” said treasurer of a big foreign bank.
