Two more BB bills in the offing

Two more Bangladesh Bank (BB) bills will be introduced soon in the money market to transmit monetary policy through managing liquidity more effectively.
The twin BB bills will have 90-day and 180-day tenures, according to a notification issued by the central bank on Wednesday.
Currently, three BB bills are being used through auctions to adjust the monetary programmes. The BB bills have 07-day, 14-day and 30-day maturity periods.
After a pause of three years, the banking regulator resumed operations of 30-day BB bills on November 20 last to offset liquidity, high-powered money in particular, in the market.
Since resumption of the 30-day BB bills, the central bank mopped up Tk 9.61 billion from the market in two auctions held on November 20 and November 27 (Wednesday) through competitive bidding where the cut-off yield was 11.10 per cent.
The move came following injections of high-powered money, also known as print money, through various instruments to bring stability in the money market amid prevailing contractionary monetary regime.

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