Dhaka, Bangladesh (BBN) - The repurchase agreement (REPO) auction of Bangladesh Bank for commercial banks and financial institutions was held on Wednesday, officials said.
Thirteen bids of 1-day tenor amounting total of BDT 82.93 billion were received as special REPO. Of those, all bids of 1-day tenor amounting total of BDT 21.90 billion were accepted.
Moreover, 13 primary dealers (PDs) of 1-day tenor amounting total of BDT 63.4320 billion were provided as liquidity support facility.
The rate of interest of liquidity support facility was 7.75 percent but for the special REPO the rate of interest was 10.75 percent, according to the auction result.
The central bank of Bangladesh earlier selected 15 PDs -- 12 commercial banks and three non-banking financial institutions (NBFIs) -- to deal with government 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-26Jan12-10:48 am (BST)