The Central Bank was able to accept only 31bn from yesterday’s (23.06.2022) treasury bill auction at the previous week’s rates. Therefore, they were short of 63bn out of the 93bn that was offered to the market.
Most probably, that shortfall will have to be newly “printed” by the Central Bank and released to the Government.
Last week also, the amount printed was 48bn, and that brought the total printed by Governor Nandalal Weerasinghe’s “independent” Central Bank to 316bn.
However, when the IMF programme starts, the Government and Central Bank will have to stop this “money printing” business. It would then be interesting to see how the Government would pay the salaries of public servants, pensions, fuel, etc.
