BB clarifies cash injection into market

The central bank has clarified its position regarding the latest injection of high-powered money into the market.

As emergency strikes, according to the Bangladesh Bank (BB), this liquidity has been injected for the time being.

It made the clarification following a news item headlined 'Return of high-powered money in bond form; Generous fund feeding to banks thru special bonds crosses Tk 400b' published on Thursday's issue of The Financial Express.

According to the circular, the central bank will issue BB bills or any related instrument of the same amount very soon to withdraw the money from the market.

"So, there will be no net injection into the market. And this is the last time such a special bond is being issued," it said.

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