Staff Reporter :
Bangladesh Bank (BB) has finally backtracked from its previous decision to not print more money, as Governor Dr Ahsan H Mansur on Thursday said that Tk22,500crore has been printed to bail out six weak banks.
The six banks in question are First Security Islami Bank PLC (FSIBPLC), Social Islami Bank LTD (SIBL), Exim, National, Union and Global Islami.In order to control inflation induced by new money in the market, the central bank also plans on issuing new bonds to withdraw that money later from the market.
The governor was speaking at a press conference yesterday at the central bank headquarters in the capital.
Dr Mansur said that the central bank backtracked from its earlier stance of not printing money for the sake of depositors.
However, it will not create inflationary pressure as the central bank also introduced new instruments to mop up money from the banks which have excess liquidity.
In this way, the net reserve money will not increase, he added.
The big difference in printing money from previous practice during Hasina’s government is that problem banks were restructured and strictly monitored, the governor said.
“Depositors’ money is safe; you can rest assured. No matter which bank you keep your money in, it will be safe; there will be no problem.
However, if everyone starts withdrawing money all at once, no bank will survive. Withdraw as much money as you need.”
“The monetary policy will remain tight as before. We will not destabilize the market. I will also say that no one should withdraw like Tk100 crore at once,” the governor further stated.
Asked whether this emulated policies made by the previous government, the governor responded: “Money laundering has stopped. Every bank is being monitored. Money is no longer being stolen from banks.
Earlier, even after assisting by printing money, money would be laundered. But now accountability is being ensured. Every bank is being monitored. The boards have been changed.”
