ABL’s recommendation is part of its attempts to absorb the excess of liquidity in the banking system.

It also comes in the wake of the Ministry of Finance’s suspension of selling Treasury Bills (T-Bills) in March, and the Central Bank’s issuance of Certificates of Deposits (CDs) last week.

The sale absorbed less than 15 percent of the total available liquidity in banks.

The Association said it expects liquidity in local currency to increase in coming months with the maturity of additional T-Bills, and the continuous conversion of deposits to local currency. 

Economists expect ABL to cut rates on deposits in foreign currencies “soon”.