Central Bank Bills to be sold to tame inflation

The Central Bank of Myanmar (CBM) will sell Central Bank Bills (CBBs) in order to curb inflation.
The CBM conducts monetary policies through interest rate policy, Minimum Required Reserves and open market operations. The CBM has a plan to issue and sell its securities (CBBs) as one of the open market operations to drain liquidity.
This is an attempt of the CBM to mop up excess liquidity in the financial system to reduce inflation to a certain extent. The issue and sale of CBBs is to practise monetary stability, one of the three pillars of the Central Bank of Myanmar.
The issuance of the CBBs is to control the currency and stabilize the price. The earnings from the issuance of the Central Bank Bills will be contributed to the government projects and the sector for the growth of the Gross Domestic Products.
The Central Banks of other countries also issue treasury bills on behalf of the government to cover the state’s budget deficits or to use the CBBs as a tool of monetary policy.
The move of the issuance of the treasury bills is to cover the short-term state’s budget’s deficits. The Open Market Operations entail the issuing of the CBBs to steer money supply.—TWA/ GNLM