For this reason, the Debt Management Department made several recommendations. These include making necessary arrangements in the electronic system of Bangladesh Bank for placing the bonds as collateral; To adjust the funds from the current accounts of the banks by releasing the lien of the collateral bonds on maturity and depositing those funds in the respective accounts of Bangladesh Bank.
It has also been advised to provide repo once again after appealing to the banks after the money coming from the maturity of the bonds is deposited in the respective accounts of the central bank. As a result, banks have borrowed money from the central bank in the last two days.
Bangladesh Bank issues guidelines for depositing money in Islamic bank against bonds. However, banks can borrow at an interest rate of 8 percent and lend to their customers at an interest rate of 11-12 percent.
This step benefits both the banks and the government as the liquidity crisis of the banks and the debt of the government is reduced. However, those concerned expressed doubt whether printing money and lending against bonds would reduce inflation.
To control the rising inflation, Bangladesh Bank has taken the step of further reducing the money supply in the markets in the monetary policy of the second half of the current financial year.