Net sales of savings instruments decreased in July-September FY24 compared to the same period last year, indicating a preference for encashing over investment. In FY24 Q1, people invested Tk 21,656 crore in savings certificates, while the government repaid Tk 22,921 crore, resulting in a negative net sales of Tk 1,264 crore.
In contrast, during the same period in the previous fiscal year, sales of national savings certificates were Tk 21,511 crore, with the government seeing positive growth of Tk 331 crore. The negative growth is attributed to people’s reduced savings capacity due to high inflation, making them withdraw funds from savings instruments without reinvesting. The government has also imposed conditions on these instruments, such as requiring savers to submit tax return certificates. The government’s steps to reduce money supply aim to combat inflation, leading to decreased borrowing from savings instruments.
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