Dhaka, Bangladesh (BBN) - The Bangladesh Bank (BB) has squeezed withdrawing fund from the market ahead of Eid festival, officials said.
The central bank withdrew BDT 1.93 billion on Wednesday from the market through reverse REPO auction against BDT 18.23 billion of the previous working day.
Two bids of 1-day tenor amounting total of BDT 1.93 billion were received and all the bids were accepted. The rate of interest of Reverse Repo was 5.25 percent.
On the other hand, the central bank injected BDT 1.8421 billion in the market through special REPO auction and assured liquidity support to the banks on the same day, they added.
One bid of 1-day tenor amounting to BDT 500 million was received as Special Repo and bid of 1-day tenor amounting to BDT 300 million was accepted.
Moreover, six primary dealer (PD) and non-PD banks of 1-day tenor amounting total of BDT 1.5421 billion were provided as Liquidity Support Facility.
The rate of interest of Special Repo was 10.25 percent but for the Liquidity Support Facility the rate of interest was 7.25 percent.
BBN/SSR/AD-24July14-11:43 am (BST)