Dhaka, Bangladesh (BBN)– The Bangladesh Bank (BB) withdrew BDT 172.95 billion from the market using its reserve REPO auction on Monday, officials said.
Twenty two bids of 1-day tenor amounting total of BDT 172.95 billion were received and all the bids were accepted. The rate of interest of reverse REPO was 5.25 percent, according to the auction result.
“Around 20 banks are still facing excess liquidity burden following suspension of treasury bonds auctions by the government in May and June,” a senior treasury official of a leading private commercial bank told BBN in Dhaka.
He also said the central bank is withdrawing the excess liquidity from the market using its reverse REPO (repurchase agreement) auction tool to ensure the country’s money market stable.