The amount of cash held outside the banking system in Bangladesh surged to Tk 2,63,373 crore in April, following three consecutive months of decline. The increase in cash withdrawals from banks is attributed to concerns over high inflation and the health of the banking sector. The recent loan irregularities in several banks have further eroded trust, prompting depositors to withdraw funds despite appeals from government officials and the central bank.
According to Bangladesh Bank data, the volume of currency held outside banks was Tk 2,54,668 crore in March 2023, Tk 2,57,667 crore in February 2023, Tk 2,62,992 crore in January 2023, Tk 2,68,181 crore in December 2022. The amount of cash outside the banking system was Tk 2,36,448 crore in June 2022. The quantity of cash outside the banking sector has steadily risen since October 2021, when it was recorded at Tk 2,05,895 crore, due to growing inflationary pressure. The bankers said that depositors were opting to keep more cash in their possession to cope with the rising living expenses.
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