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Economy

Bangladesh's high inflation eats up savings, squeezing banks

Liquidity fears grow after new deposits declined nearly 30% last fiscal year

A government bank employee counts money in Dhaka: New deposits in the country's banks have fallen sharply   © Reuters

DHAKA -- Bangladesh's high inflation is forcing citizens to dip into their savings and stop putting money away, raising concerns about bank liquidity flows and hammering sales of national savings certificates.

Recently released data for the fiscal year ended June shows that new bank deposits fell 29.14% to 1.202 trillion taka ($11.87 billion). In contrast, the previous fiscal year's figure of 1.697 trillion taka had reflected a 46% increase in deposits.

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