Central bank relaunches Bangladesh Bank Bill to mop up excess liquidity
The Bangladesh Bank today took a decision to mop up excess liquidity by way of allowing banks to invest their idle fund at an instrument namely "Bangladesh Bank Bill".
The first auction of the BB Bill will be held on August 9 and there will be nine auctions throughout this month.
The central bank has suspended the auction of BB Bill since April 2018.
The central bank issued a letter to all banks and non-bank financial institutions informing the matter.
Excess liquidity in banks stood at Tk 231,462 crore as of June, up 66 per cent year-on-year and 9 per cent a month ago.
The central bank has taken the decision in line with its latest monetary policy unveiled on July 29.
The surplus liquidity has started to maintain an upward trend since March last year when the central bank took several measures to inject money into the market to offset the business slowdown brought on by the coronavirus pandemic.