Dhaka, Bangladesh (BBN)- The central bank of Bangladesh is going to reintroduce the auction of 30-day Bangladesh Bank Bills from Monday to withdraw the excess liquidity from the market, officials said.
"We'll reintroduce the auction of 30-day Bangladesh Bank Bill as a monetary tool from August 10 aiming to mop up the surplus liquidity from the market," General Manager of the Debt Management Department of the Bangladesh Bank (BB) Mijanur Rahman Joddar told BBN.
The overall excess liquidity with the commercial banks stood at BDT 347 billion in June 2009, registering a 165 per cent growth over that of the same period of the previous calendar year, according to the central bank.
The central bank reintroduced 30-day and 91-day Bangladesh Bank Bills in October 2006 as the monetary policy instruments following decision that the government treasury bills and the bond auctions are exclusively used for the government debt management.
However, the auction of 91-day Bangladesh Bank Bill was discontinued to avoid its duplication with 91-day Treasury bill from January 8, 2008. There was also no auction of 30-day Bangladesh Bank Bill from January 8, 2008, according to the central bank's annual report for 2007-08.
BBN/SS/SI/AD-09August09-2:17 am (BST)