Home ›› 10 Aug 2021 ›› Front
The Bangladesh Bank (BB) pulled out Tk 2,605 crore from the banking sector on the first day of its auction on Monday through the BB bills.
The rate of seven-day bills was 0.54 per cent and that of 14-day bills 0.75 per cent, according to the central bank officials.
Bangladesh Bank Executive Director and Spokesperson Md Serajul Islam said Tk 1,100 crore and Tk 1,505 crore were pulled out through the auctions of 14-day bills and seven-day bills respectively.
The BB initiated the move in line with its hints in the monetary policy statement for the Fiscal Year 2021-2022 announced on July 29.
There are nine auction days, which will end by August.
The BB on Thursday issued a letter to the managing directors and chief executive officers of all scheduled banks and financial institutions to take part in the auction of Bangladesh Bank bills.
The letter said the central bank has decided to ensure stability in the money market by withdrawing excess liquidity from the banking sector.
The auction durations are 7, 14 and 30 days. The 7 and 14 days auctions will be held on August 18 and 25 respectively.
On the other hand, the 30-day auction will be held on August 11, 23 and 31.
According to the Bangladesh Bank, there is a surplus liquidity of Tk 2,31,462 crore in the banking sector till June.
Liquidity started to accumulate as the demand for loans remained low amid the Covid-19 pandemic.
According to officials, the central bank has not yet made a decision on exactly how much money will be withdrawn from the banking sector through the bills.
