As the money market continues to heat up, the minister sat with high officials of the central bank and nationalised commercial banks (NCBs).

"If a bank borrows money at an interest rate of 70 percent, the central bank should look into the financial strength of that particular bank," Saifur said, according to meeting sources.

Taka continued to weaken yesterday with each US dollar selling at Tk 63.99.

The NCBs sold the greenback at Tk 63.46.

Meanwhile, the call money rate again shot up yesterday hitting 22 percent, which was 7 to 8 percent a few days back.

The rate soared as high as 75 percent after the Eid before going down to 5 percent.

At yesterday's meeting, central bank and NCB officials told Saifur that dollar shot up as banks are making payment of letters of credit (LCs) opened in September and October.

As oil and ship scrap prices shot up on the international market, the demand for dollar is rising, they said. The central bank and NCB officials said some small banks have weak fund management and lack proper assessment of demand and supply that also contributed to a costly dollar.

The officials apprised the minister that some banks borrowed money from the NCBs at lower interest rate and lent the same to small banks at higher rates taking advantage of the small banks' cash crunch. This practice led to a volatile call money market, they said.

As the central bank cannot intervene in a free market economy, Saifur advised the BB to sit with the commercial banks and help them efficiently manage funds. BB officials assured the minister that the money market will return to normal soon.

"It's not possible to reduce the interest rates by enforcing hartal," he told reporters later at his secretariat office.

BB Governor Fakhruddin Ahmed, Deputy Governor Allah Malik Kazemi, MD of Sonali Bank Tahmilur Rahman, MD of Agrani Bank Syed Abu Naser Bukhtear Ahmed, MD of Janata Bank SM Aminur Rahman and MD of Rupali Bank Abdul Hamid Miah were present at the meeting.

"It's a temporary pressure of demand. Its now being adjusted," BB Governor Dr Fakhruddin Ahmed told reporters after the meeting, expecting that the price of the greenback would become normal within next week.