Dhaka, Bangladesh (BBN)– The excess liquidity in banks dropped by 14.89 per cent in September mainly due to higher growth of currency outside banking system before the national polls.
The selling of the US dollar by the central bank has also helped dragging down the amount of surplus cash in the country’s banking system, senior officials of the Bangladesh Bank (BB) said.
The excess liquidity came down to around BDT 800 billion in September from BDT 940 billion, recorded three months before, they added.
The figure was nearly BDT 922 billion in September 2017.
However, the major portion of the excess liquidity has already been invested in the government-approved securities and BB bills as a risk-free investment for the banks, said the central bank officials.