BB cancels 360-day special repo

The central bank has cancelled the 360-day special repo (repurchase agreement) facility as the coronavirus situation has improved and there is now a lack of demand for this borrowing tool.

In May 2020, the Bangladesh Bank introduced a special repo for a period of 360 days in order to ensure a smooth supply of money in the economy hit hard by the coronavirus pandemic. It was also aimed to implement the stimulus packages, unveiled by the government and the BB.

A repurchase agreement, or repo, is a short-term agreement to sell securities in order to buy them back at a slightly higher price.

Under the special repo, banks and financial institutions were able to borrow against additional treasury bills and bonds of statutory deposit rate with the BB.