Dhaka, Bangladesh (BBN) – The repurchase agreement (REPO) auction of Bangladesh Bank for commercial banks and financial institutions was held on Tuesday, officials said.
Fourteen bids of 1-day and 7-day tenor amounting total of BDT 87.58 billion were received as special REPO. Of those, 13 bids of 1-day tenor amounting total of BDT 33.70 billion were accepted.
Moreover, 13 primary dealers (PDs) of 1-day tenor amounting total of BDT 49.5139 billion were provided as liquidity support facility.
The rate of interest of liquidity support facility was 7.25 percent but for the special REPO the rate of interest was 10.25 percent, the Bangladesh Bank (BB) said.
The central bank of Bangladesh earlier selected 15 PDs — 12 banks and three non-banking financial institutions (NBFIs) — to handle government-approved securities in the secondary market.
The PDs will subscribe and underwrite primary issues and make secondary trading deals with two-way price quotations.
A PD will not short-sell any particular issue and will not hold a short position in secondary dealings. The PDs will not act as inter-bank or inter-dealer brokers, which has been specified in the guideline.
BBN/SSR/AD-21Dec11-9:46 am (BST)
