“The move is praiseworthy. It’ll assist in liquidity for banks and the NBFIs to extend support in the form of soft loans as needed for businesses --from micro and small and medium to larger sectors -- hard hit by the coronavirus pandemic,” Fahim said in a statement.

“During this difficult time such measures would encourage the entrepreneurs. On behalf of the businesses, I express my deepest gratitude towards Prime Minister Sheikh Hasina and the political and government leaderships concerned for such effective measures,” Fahim said.

On Sunday, the central bank in an unprecedented move decided that the government securities from the secondary bond market will be purchased so that liquidity management of banks and the NBFIs do not face any major challenges due to the situation arisen from coronavirus.

A notice by the central bank said it will buy the securities on the market rate, which will be determined by auction.

Under the decision, the banks will be allowed to sell their T-bills and bonds after holding their statutory liquidity ratio (SLR).

Lenders hold the majority of the excess liquidity in the form T-bills and bonds. As of December last, the excess liquidity in the banking sector stood at Tk 105,646 crore, according to the central bank.

The FBCCI president said the central bank’s move is a renewed attempt to keep the country’s economy in order despite huge challenges the country is going through under the current situation.    

Media reports said the decision has come after the Reserve Bank of India had declared to buy bonds on the open market for a total of Rs 100 billion ($1.35 billion) to protect its economy from the prevailing crisis arriving from the coronavirus outbreak.

The central bank rarely purchases T-bills and bonds from banks.