Dhaka, Bangladesh (BBN)- The government has decided not to borrow using treasury bonds auction this month aiming to manage its cash management efficiently, officials said.
The Bangladesh Bank (BB), the country’s central bank, communicated the government decision to the commercial banks through e-mail on Monday.
The government latest move came against the backdrop of holding adequate amount of liquid money recently, a BB senior official explained.
Currently, the government is holding nearly BDT 110 billion excess liquidity in its accounts, according to the BB official.
Talking to BBN, another central banker said the BB has conveyed the government decision to the banks in line with the finance ministry advice.
However, the auctions for the government treasury bills (T-bills) will continue during this month, he added.
The government is set to borrow BDT 16.50 billion in May through its T-bills auctions, according to the market operators.
Currently, three T-bills are being transacted through auctions to adjust the government's borrowing 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-year, 10-year, 15-year and 20-year - are being traded in the market.