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BB cancels 360-day special repo

Staff Correspondent
06 Sep 2022 18:22:02 | Update: 06 Sep 2022 18:45:38
BB cancels 360-day special repo
A general view of the Bangladesh Bank in Motijheel, Dhaka — TBP photo

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.