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BB Cash Issuance Reaches Tk 2,83,700 Crores

Economic Tag: Central Bank

Since November 2023, Bangladesh Bank has increased cash issuance by Tk 10,000 crore, despite implementing a contractionary monetary policy to combat inflation. Despite a brief decline in mid-2023, cash issuance surged afterward. In June 2023, a record 3 lakh 11 thousand 947 crores were issued, with Tk 2 lakh 91 thousand 913 crore outside banks. By January 2024, cash in circulation reached Tk 2 lakh 83 thousand 700 crores. This rise, amid efforts to control inflation, raises concerns. It coincides with heightened withdrawals post-elections, amid economic uncertainties. High-value notes dominate issuance, comprising 92% of the total, facilitating cash hoarding and illegal transactions. Despite global trends, Bangladesh’s persistent cash reliance underscores challenges in aligning policy goals with economic realities.

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