BB releases 9,178C in market to maintain liquidity in banking sector

Business Desk :

To prevent a financial crisis in the country’s banking system, Bangladesh Bank has provided more than Tk9,178 crore in liquidity to the market through various financial instruments.

Bangladesh Bank announced this information in a press release on Thursday.
The concerned believe that this will make it easier for banks to conduct daily transactions, withdraw deposits and meet customer needs.

According to Bangladesh Bank, this money has flowed into the market from the repo, special fund for Islamic banks and standing deposit facility activities conducted till January 14.

The central bank said that Tk7,393 crore has been provided through one-day Central Bank Repo to meet the short-term needs of the banks. The banks have taken this money at 10% interest.

As a result, immediate money flow has been ensured in the market.
A total of Tk744 crore was provided under the Islamic Banks Liquidity Facility (IBLF) for 14 and 28 days under the current liquidity support of Islamic banks.

However, due to the return of some of the money from the previous period, the net liquidity from this sector decreased by about Tk383 crore.

At the same time, Bangladesh Bank has taken Tk1,757 crore under the one-day standing deposit facility to deposit additional money in the market.

However, as Tk3,544 crore was returned at the end of the previous period, a net amount of Tk1,788 crore returned to the market from this sector.

All activities combined, a net amount of Tk9,1789 crore has flowed into the market, which will help reduce the ongoing pressure on the banking sector.

Those concerned believe that banks will get some relief, especially in the payment of maturing deposits, payment of salaries and allowances, settlement of LCs and daily transactions.

Bangladesh Bank says that in addition to controlling inflation, liquidity is being increased or decreased as needed to keep the flow of money in the market normal.