Share market
The call money rate soared to a preposterous 175 percent on 15th December. The funds have been required to meet the Cash Reserve Requirement (CRR) of scheduled banks with Bangladesh Bank. Bangladesh Bank has increased the CRR by another 0.5 percent to 6 percent in total.
This is the second increase in six months. In the month of May, the CRR was increased by 0.5 percent. The top bankers opined that the decision to increase CRR 'should not have been taken, it is an abrupt rate hike'. The rate hike has affected the stock market very adversely.
On 5th December, trade volume of Dhaka Stock Exchange was the highest of Tk. 3250 Crore. Then the trade volume started sliding down due to anti-investor measures taken by SEC and Bangladesh Bank.
On 15th December, the trade volume hit the rock bottom of Tk. 1270 Crore! So, there was a decline of staggering Tk.1980 crore in trade volume in only 10 days time, wiping out profits, and most importantly, capital of thousands of small, medium investors which mostly comprise students, unemployed youths, fixed income groups, housewives, widows, and pensioners - people who supplement their living from incomes of stock market profits.
Such abrupt, irrational, illogical decision by Bangladesh Bank officials benefited none, on the contrary, made the present government unnecessarily unpopular.
We would request the government to enquire about the matter and take necessary steps. The government should also restrain the Bangladesh Bank authorities from taking any rash decisions which harm the common people.
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