Dhaka, Nov. 20 -- The government has planned to separate treasury operations from the Bangladesh Bank (BB) as part of a move to keep the monetary functions of the central bank away from fiscal dominance.

This comes after the International Monetary Fund (IMF) and the World Bank (WB) suggested the split, saying treasury operations often hinder the proper transmission of monetary measures in Bangladesh.

In many developing and developed economies, these two functions remain separate.

Currently, the Debt Management Department of the central bank facilitates the government's domestic bank borrowing on behalf of the Ministry of Finance through the auctions of government securities (G-sec).

It does so in the absence of a designated government...