The central bank's operating profit shrank by over 25 per cent or Tk 2.66 billion in the last fiscal mainly for higher interest expenses for mopping up excess liquidity from the money market.
Officials said the Bangladesh Bank's operating profit came down to Tk 7.72 billion in the fiscal year (FY) 2015-16 from Tk 10.38 billion a year before. The figure was Tk 20.38 billion in the FY14.
They said the BB expenses on account of interest payments swelled to Tk 8.01 billion in the last fiscal year from Tk 1.20 billion of the previous fiscal.
"We've to spend more on interest payments to lenders for mopping up excess liquidity in the FY 16 using our monetary instruments like Reverse Repo and BB bill auctions," a BB senior official explained.
He also said the central bank used monetary tools in line with its monetary policy statement to ensure money-market stability.
"We're working for keeping overall inflation under control using different monetary instruments, not only making profit," the central banker noted.
He also said: "The central bank uses its monetary tools without considering profit or loss. Our prime goal is to check inflationary pressure on the economy."
Currently, three BB bills are being transacted through auctions to adjust the overall excess liquidity in the country's banking system. The BB bills have 07-day, 14-day and 30-day maturity periods.
Meanwhile, a section of general employees staged demonstrations on the BB premises on Tuesday morning against curtailment of their incentive bonus for the FY 16.
They also demanded a review of the decision made by the BB board at its meeting Monday.
The BB board slashed the number of such bonuses to four from previous five following its reserve heist, it was learnt.
siddique.islam@gmail.com [Read More]

—–
Source: The Financial Express