The interbank call money rate hit its new high at 9.43% on Sunday, indicating a persistent liquidity problem on the money market.
The highest bid for the overnight borrowing rate on the day stood at 10% and the lowest at 8%, averaging 9.43%.
The day's total transaction stood at Tk3,418 crore in 72 deals.
Such a high rate of call money has not been seen in the last five years at least, according to banking insiders and Bangladesh Bank sources.
They viewed that the banks were now investing more in the high-yielding government treasury instruments, and trying to meet their daily needs through the overnight borrowings.
Bangladesh Bank stopped the 'devolvement' or printing money in August last year. Since then, the call money rate started increasing, said a central banker.
In the meantime, the yield on the government treasury rose to around 12%, the highest investment earnings in Bangladesh.
The interest rate on National Saving Certificates is now around 11%.
People in the banking industry said the banks took the overnight loans at the highest rate on the day as the market is tight.
The sharp rise in the call-money rate indicates a higher cost of emergency funds for some banks, notwithstanding the prevalence of some liquidity surplus in the overall system.
Banks extend overnight credit to one another for a day to fill the asset-liability mismatch or to meet the sudden demand for funds, comply with the statutory CRR and SLR requirements.
