New money injected by BB up 175pc in FY23

Business Report :
Injection of newly printed money by Bangladesh Bank into the market surged over 175% in FY23, said central bank sources.
Officials at the Bangladesh Bank said the central bank had distributed a record volume of the print money into government accounts in the last one year through buying the majority of the government securities itself with a devolvement mechanism to ease banks’ liquidity stress.

According to statistics available with the central bank, the net volume of devolvement carried out by Bangladesh Bank stood at around Tk80,000 crore in FY23, in a quantum leap by Tk51,000 crore from the previous fiscal year’s Tk29,000 crore.

The government normally borrows money from the banking system to meet budget-financing shortfalls through auctioning government securities — treasury bills and treasury bonds hosted by the central bank.
A Bangladesh Bank official said that they sold $13.58 billion in FY23 to banks to help them in overseas transactions amid forex scarcity.