The central bank has decided to ease the daily cash reserve ratio (CRR) requirement for commercial banks, providing them with some relief amid ongoing liquidity constraints, according to officials.
Under this decision, Bangladesh Bank (BB), the country’s central bank, has reduced the daily CRR maintenance requirement by 50 basis points, lowering it from the current 3.50 per cent to 3.0 per cent. This adjustment will take effect from Wednesday.
However, the CRR ratio at the end of two weeks and month-end will remain unchanged at 4.0 per cent.
This routine CRR reduction comes a few weeks after the banking regulator informed treasury heads of banks about its plan to tighten borrowing facilities from the central bank by discontinuing the 28-day liquidity window against repo, a measure set to take effect after Eid-ul-Fitr.
