Businesses in Bangladesh, especially those that mostly deal with cash transactions, yesterday said they are contending with a liquidity crunch as the country’s central bank has placed a limit on daily cash withdrawals from banks.

The Bangladesh Bank yesterday ordered commercial banks not to allow cash withdrawal of more than Tk 2 lakh per customer this week because of a lack of security, a senior official of the central bank said.

The central bank also instructed banks to monitor transactions through cheques and stop any suspicious transactions.