BB to introduce 90, 180 days bills

Bangladesh Bank (BB) has taken a decision to introduce 90-day and 180-day tenure bills in addition to the current 7, 14 and 30 days bills.

The decision has taken to implement monetary policy and make liquidity management more effective.

To this end, the central bank on Wednesday issued a circular.

The banking regulator will hold an auction for the new bills as per earlier rules and regulations.

An official of the central bank said, on the one hand, money is being withdrawn from the market; on the other hand, money is being lent to weak banks.

"As a result, the risk of excess money supply in the market is being prevented. If money is only lent and not withdrawn from the market, it can be identified as a reason for inciting inflation. Therefore, this process is being implemented with caution," the official said.

Today, the Bangladesh Bank withdrew Tk452 crore through 30-day Bangladesh Bank Bills. Eleven banks participated in the bidding. The average interest rate for the bill is 11.10%.

Earlier, the Bangladesh Bank provided liquidity support of about Tk20,000 crore to five weak banks.

The central bank provided this liquidity support to the private sector National Bank, Exim Bank, Social Islami Bank, First Security Islami Bank and Union Bank.