Mar 25, 2017

Rs. 217 billion printed beyond approved system

During the two and half month period from January 1, 2017 to March 17, the government has printed currency notes to the tune of Rs. 217 billion, according to the Central Bank’s latest report.

Currently the government expenditure has far exceeded the country’s income and the government has to bear the expenses for the payment of State employees and pensions of retired state employees and the additional expense for the recently approved increments for the ministers.

Due to the increase in interest of Treasury Bonds and to control the Increases in interest rates in the domestic market, the government is said to have taken the only available option, which is to print currency notes.

However, according to a source at the Central Bank Currency Department who spoke on condition of anonymity, the Central Bank has an approved system of printing currency notes and would not print currency beyond that approved mechanism.