Dhaka, Bangladesh (BBN)-The government has extended suspension on the auction of treasury bonds by another month aiming to manage its cash management efficiently, officials said.
The central bank of Bangladesh communicated the government’s latest decision on suspension of the holding of treasury bonds auction with the commercial banks on Sunday.
“The central bank has conveyed the government’s decision to the banks in line with the finance ministry’s advice,” a senior official of the Bangladesh Bank (BB), the country’s central bank, told BBN in Dhaka.
The latest government move came against the backdrop of holding adequate amount of liquid money recently, the central banker said to explain the measure.
Currently, the government is holding around BDT 55 billion in excess liquidity in its accounts, the BB official added.
However, the auctions for the government treasury bills (T-bills) will continue during this month.
The government is set to borrow BDT 71.13 billion through issuing its different T-bills by the end of this month, according to the auction calendar.
Earlier on May 4, the Ministry of Finance advised the BB authorities not to hold any auction of treasury bonds for this month in order to conduct its cash management properly.
Currently, three T-bills are being transacted through auctions to adjust government borrowings from the banking system. The T-bills have 91-day, 182-day and 364-day maturity periods.
On the other hand, four government bonds having the tenures of 5 years, 10 years, 15 years and 20 years are being traded on the money market.