Dhaka, Bangladesh (BBN) - The repurchase agreement (REPO) auction of Bangladesh Bank for commercial banks and financial institutions was held on Wednesday, officials said.
Twelve bids of 1-day tenor amounting total of BDT 40.93 billion were received as special REPO. Of those, all bids of 1-day tenor amounting total of BDT 5.20 billion were accepted.
Moreover, 13 primary dealers (PDs) of 1-day tenor amounting total of BDT 53.6275 billion were provided as liquidity support facility, according to the auction result.
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, it added.
The central bank of Bangladesh earlier selected 15 PDs -- 12 commercial 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.
BBN/SSR/AD-05Jan12-1:10 am (BST)