Central Bank Prints Tk 22,500 Crore to Support Struggling Banks

Staff Correspondent

The Bangladesh Bank has printed Tk 22,500 crore to provide liquidity support to six financially weak banks, Governor Ahsan H. Mansur announced at a press briefing on Thursday.

The governor stated that the move was necessary to ensure depositors’ safety and maintain stability in the banking sector. Starting Sunday, customers will be able to withdraw necessary funds from these banks, he assured.

“We are providing liquidity to these struggling banks to protect depositors,” he said. He also urged customers not to withdraw more money than needed.

This decision comes despite the governor’s earlier commitment, made upon assuming office on August 13, to avoid printing new money for liquidity support. He explained that the current situation in the banking sector required immediate action.

“We are working to resolve the instability in the banking sector. There is no reason for depositors to worry about their savings,” Mansur added. He also mentioned that the central bank would gradually withdraw older currency from circulation to help control inflation.

However, economists have raised concerns.

Prominent economist Dr. Monirul Islam criticized the move, stating, “This will push the country towards extreme inflation. Printing money is not a sustainable economic strategy.”

Banking sector insiders suggested the measure was partly intended to redesign existing currency notes, which they argue was unnecessary at this time.

Despite criticism, the governor defended the decision, emphasizing its role in stabilizing the financial sector and restoring public confidence.