Cash holdings outside Bangladesh’s banks rose for the third consecutive month, reaching Tk 2,57,295 crore in January. This trend, which saw an increase from Tk 2,54,860 crore in December, reflects ongoing economic challenges. High inflation, hovering above 9%, has led depositors to withdraw funds to hedge against rising living costs. Additionally, disruptions in the global supply chain, currency devaluation, and local commodity price spikes contribute to economic strain. The erosion of trust in the banking sector due to irregularities also drives cash transactions in the informal economy, further impacting monetary policy and liquidity management. Excess liquidity in banks dropped to Tk 1.63 lakh crore in December, affecting lending and investment activities, exacerbated by the sale of $30 billion by the Bangladesh Bank to address dollar shortages.
Source for more details:
